Knowledge - Based Innovation for Sustainable Competitive Advantage

We live in an era which is an interval of significant technological as well as economic and social shifts. This is elucidated by the move from a traditional society based on industry to a modern knowledge-based society. Most important aspect of this is not the increase in production volumes and forms. Rather it is the emergence of novel and fundamentally novel knowledge. Above mentioned society would therefore focus on new knowledge to produce new goods and technologies. It also looks into different ways of economic, manufacturing, ecological, humanitarian and social governance. This study explores the potential of translating knowledge, creativity and innovation into an efficient definition of a product. Obviously, the present century is a period of change in quality and lives of people on grounds of creativity and innovation. Two main practices for businesses are knowledge management and innovation. Management of knowledge is regarded as a key management strategy when it comes to the present period of economy which is a knowledge - based one. Ever growing competition, consumer demands and novel avenue for business has created the necessity for innovation by companies. The key position of knowledge management in innovation must be understood due to the fact that it exerts an important impact on innovation. The importance of this work lays on how knowledge management aid organizations to improve innovation of its products and services to achieve competitive advantage. This also aims to add on to literature by providing a working definition of innovation which is outcome-oriented and at the same time based on comprehensive knowledge.