Managing distributed knowledge bases and technological upgrading in low and medium technology industries

Low and medium technology industries, which account for more than ninety per cent of GDP in advanced economies, engage in relatively little intra-mural Research and Development activity. Nevertheless, they are often comparatively innovative because many low and medium technology firms are adept at drawing relevant new knowledge from other sectors. This knowledge is sometimes conceptual or abstract, but it is often embodied in equipment purchased by the firms or results from joint ventures or other forms of collaboration. Because the knowledge needed by these firms is so diverse and widely distributed, it raises crucial management issues. In this paper, we discuss these issues and present illustrations from the food sector.