4.1 Skills and knowledge

Employees hold the knowledge and skills that underpin a capability. It is important to recognise, however, that this component of a capability is a complex blend of different types of skill and knowledge. Leonard suggests that there are three types: public/scientific, industry-specific, and firm-specific. Firm-specific knowledge is the least codified and transferable. The implication of this is that a capability is not based only on generally understood scientific or technological principles, or industry consultants. The major, yet most difficult to imitate, dimensions are the skills and knowledge that develop within an organisation.