Knowledge and Innovation: From Path Dependency Toward Managerial Agency

In this chapter we argue that in foundational theories of knowledge and innovation, innovation is either path-dependent, and thus incremental and largely passive, or active and radical, with strategists playing a decisive role in shaping innovation outcomes. Moving on from foundational theories of knowledge and innovation, we show in this chapter that the field has diversified into five interrelated clusters: (1) international knowledge transfer, (2) organizational capabilities and learning, (3) networks and ties, (4) regional clusters, and (5) open innovation. While some clusters have shown the importance of managerial agency, the chapter concludes with describing four research avenues considered most important for future-proofing this field of study: (1) diverse audiences, (2) regulation and regulators, (3) misalignment capabilities, and (4) internal agents as active movers of innovation. These research avenues may further contribute toward a managerial agency of innovation view in which managers are regarded as playing an active role as strategists in knowledge development and innovation.