On Innovation and Capability: A Holistic View

While innovation is recognised as a key driver of economic growth and competitiveness, less attention has been given to the study of the underpinning capability to be innovative, which is here taken to be the ability to successfully exploit new external knowledge. This conceptual paper examines the parallels between innovation theory in the administrative context and Amartya Sen's capability approach, a wide vision of human potential and development. It is argued that applying Sen's approach in this fashion enables a novel perspective on the link between the innovation potential that the individual may have and the constraints that social arrangements impose. This new insight can assist the formulation, management and acceptance of organisational change processes that aim to enhance the ability to see, assimilate and apply new knowledge. These processes are especially challenging in non-western contexts. This paper begins by introducing Sen's approach, proceeds to establish a link with concepts of public sector administrative innovation, then examines some particular aspects of the relationship between the two, and concludes with some suggestions for further research.