Exploring the Foundations of Cumulative Innovation: Implications for Organization Science

Abstract

Organizational theorists have built a deep understanding of the conditions affecting knowledge sharing. However, for innovation to occur, knowledge must not just be shared, but also reused, recombined, and accumulated. Such accumulation is not inherent to the innovation process but can be either supported or limited by the context in which it occurs. We propose a framework arguing that three conditions shape this context: disclosure, access, and rewards. We show how these conditions operate at the institutional, field, community, and organizational levels. Our framework highlights how when innovators encounter barriers to the accumulation of knowledge, their solutions are often organizational ones rather than legal ones. This suggests an expanding terrain for organizational scholars interested in debates often dominated by law and economics.