This document discusses knowledge conversion capability (KCC) within organizations. KCC refers to an organization's ability to transform research and discoveries into successful commercial products. The medical device industry provides an example, as firms like Boston Scientific and Medtronic exhibit strong KCC due to institutional and technological diversity. KCC is difficult for most firms to build as it requires multi-disciplinary skills that take time to develop. The document outlines that KCC has three dimensions - conceptualization, configuration, and integration - and that developing all three dimensions is needed for a full KCC. It provides suggestions on how firms can improve their KCC, such as engaging with universities.

1. “Knowledge is Power” 2016
Creating and Nurturing Conversion
Capability within Organizations
Daniela Baglieri, Ph.D
University of Messina (Italy)

2. Organizations & Innovation:
A Fundamental Problem?
 Technological innovation often requires cross-domain collaboration
in order to recombine different scientific background which increases
coordination costs and deters breakthrough inventions (Vural et al.,
2013)
 Organizations partially exploit multidisciplinary collaboration due their
focus on value appropriation, instead of value creation.

3. The Medical Device Industry Offers an Interesting Example:
institutional and technology diversity at Boston Scientific Patent
Portfolio
Source: Q/Pat Orbit

4. The Medical Device Industry Offers an Interesting Example:
institutional and technology diversity at Medtronic Patent
Portfolio
Source: Q/Pat Orbit

5. Knowledge Conversion Capability (KCC)
 KCC centers on having the ability to transform research and
scientific discoveries into successful products and goods that could
be efficiently and quickly commercialized to create value (Chandy
et al., 2006; Zahra et al., 2007).
 With discoveries having increasingly complex and tacit knowledge,
KCC makes that knowledge accessible for potential use.

6. KCC in the Medical Device Industry

7. However, only few firms exhibit KCC…
Boston Scientific Corp. Medtronic

8. KCC: A difficult Capability for Firms to Build
 Most firms do not have the skills essential to deal with complexity of
knowledge.
 These skills are expensive to build, take time to evolve, and have an
artisan quality.
 Skills necessary for KCC are typically diffused within a company, and
most company have great difficulty in using multi-disciplinary skills
and knowledge.
 Concerns over IP also limit the evolution of KCC.

9. KCC Has Multiple Dimensions
One study has found that KCC has three dimensions (Zahra et al., 2007).
1.conceptualization and visioning of applications of that knowledge;
2.configuration and design of potential products and other applications;
3.integration of knowledge into products
Each dimension (sub-capability) serves a specific and useful purpose.
But their contribution is additive, meaning that 3 sub-capabilities are
needed.√

10. Developing KCC in Companies
How can Companies improve their KCC skills?
 Engage university experts (hiring, consulting, industry-
university cooperation)
 Private-Public Partnerships (joint-labs)
 Focus on promoting “science & technology” in operations
and training

11. In Italy, policies are targeting...

12. Conclusion
 Developing KCC requires multiple actors and organizations
 innovation constellation
 KCC is a multidimensional concept; with each dimension serving a
key purpose but requiring unique skills
 Companies have to pay attention to their allocation (resources,
skills and time) to help their stakeholders convert discoveries into
profitable applications.

13. #KnowlegeConversionCapability
‫اااا‬Daniela BAGLIERI
dbaglieri@unime.it