Innovation and Knowledge Creation as Parts of Knowledge Management

Innovation and knowledge creation these two concepts have a strong relationship but this relationship has not been examined systematically. This paper reviews the important theoretical work with highlighting the fundamental similarities and differences and the connection between the company, the knowledge basis of the company and innovation. We then compare the principal findings of the research on innovation and knowledge creation. The main objective in this paper is that a company's capabilities are primarily developed on the basis of social norms and values already existing in the social relations of the company. This in turn influences how the company develops and applies the knowledge basis, thus influencing innovation strategies