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COMPANIES/ Innovation and Human Capital in the new knowledge driven economy

FRANCESCO SANSONE comments on the important role of innovation in the growth of the economy and employment in the competitive knowledge driven market of our time. 

(Fotolia) (Fotolia)

The balance sheet data of several companies shows what an important role innovation plays in terms of turnover. Innovation has very positive effects on our products, but above all, on processes and must therefore be suitable for various types of companies and promoted in a structured form in order to make economy and employment grow.

We all know that, in the context of a  new knowledge driven economy, companies must not only excel, but also be able to be innovative faster than their competitors by sharing information and creating knowledge and by constantly creating advanced methods to supply services and/or products to their customers. An organisation able to improve the skills of its employees in real time and to transform these skills into internal solutions (improvement of processes) is able to fulfill its customer’s real needs and to improve its competitivity.

Successful innovation requires the ability to actively listen to one’s internal and external customers and to create a process for generating services or products in line with market requirements by “reengineering” the human capital available. It is therefore particularly important to identify the strategic measures necessary to transform innovation into action and to create, within the company, versatile, multi-task personnel with excellent skills in terms of flexible thinking, able to  react promptly and effectively to changes in the nature of a globalized product market.

In fact the world has changed, especially concerning the speed with which companies must introduce innovation and perceive information,  and it is now universally recognized that intangible assets, that is to say, a company’s intellectual capital, must be supported and developed more and more within the management ambit of any organization.  A source of value for companies and one of the main tasks of the top management should be exactly that of transforming tacit knowledge into explicit knowledge, that is to say into intellectual capital, thus transforming innovations created into intellectual assets onto which property rights can be exercised.