Workplace Innovation: Concepts, Regulation and Increasing Role of Knowledge Management

Theoretical Considerations and European Experiences

Abstract

The paper addresses the challenges of a better scientific understanding of the complexity of innovation processes. In this relation the authors are  stressing the need to adopt the so-called “holistic” innovation strategy integrated into the national innovation governance system in the innovation “front-runner” countries (i.e. Sweden, Finland, Denmark, etc.). The paper has two main parts. The first part presents the theoretical and methodological foundations of the innovation approaches and examines the following issues: macro- and micro (organisational) importance of innovations, innovation challenges in the public sector, comparison of variables measuring public and private sector innovations, notion and dimension of workplace innovations, hard and soft regulations of innovation, types and fast erosion of knowledge, underlining the growing role of knowledge management. 
The second part of the paper examines the empirical experiences of workplace innovation in the EU-27 countries, using certain waves (2005 and 2010) of European Working Conditions Survey (EWCS) organised by the Eurofund (Dublin). Distinguishing four major types of work organisations (i.e. "discretionary learning organisation”, “lean organisation”, “Taylorean organisation” and “traditional/simple organisation”) important cross-country differences were mapped. Comparing the period before and after the “Grand” financial crisis (2008–2009) the share of “discretionary learning organisation” declined, reflecting the strengthening trend of the short-term cost efficiency seeking strategy of the European companies, while other strategies based on knowledge-efficiency seeking have been overshadowed. Finally, the authors outline  the need – in both public and private sector – for a knowledge management based on the Employee Driven Innovation (EDI) scheme in order to create high performance working systems (HPWS).