Collaborative Research and Development: New Insights from Cyclic Models of the Innovation Process

Traditional linear models of innovation, in which it is assumed that government funding of R&D will axiomatically create innovative industries, have become obsolete. This paper suggests that innovation is in fact a complex and interactive process that involves cycles of learning. However, these "knowledge cycle" models of innovation are largely unvalidated empirically and further research will be required to extend the current theory. Knowledge cycle models appear to be superior to the linear models for a number of reasons. These include major roles for tacit (uncodified) knowledge as well as explicit (codified) knowledge, which are largely ignored in linear innovation models. An emphasis upon iterative collaboration between firms and researchers and the importance of firms participating more directly in the research and development (R&D) process may enhance the utilisation of these forms of knowledge.