A new paradigm for knowledge-based competition: building an industry through knowledge sharing

A common assumption in traditional strategic management thinking is that competitive success may be achieved by the creation and protection offirm-specific factors, either favourable market positions, as in industrial organization-based frameworks, or unique resources, such as intellectual properg and tacit knowledge, as in resource-based frameworks. This paper argues that owing to certain long-term trends in technology, industries and socieg, this paradigm is no longer appropriate for modern knowledge-based industries, particularly emerging high-technology industries. In these industries, technologies and firms are increasing4 interconnected in a complex web of interactions, and the main task o f strategic management is one o f managing technological and industy co-evolution. Complexity theory is used to identify mechanisms and strategies for creating sustainable technological communities and industries.