Abstract

In the present scenario of globalisation, knowledge has become the prime factor of production for competitive advantage. This calls for acquisition and utilisation of knowledge for innovation and technical change on a constant basis, which is only possible in a ‘learning organisation’. Innovative activities of a learning organisation are influenced by three main factors: (1) internal learning; (2) external learning; and (3) the innovation strategies decided upon by the enterprise management. An assumption has been made that, particularly in developing countries, absorption and adaptation of technologies, i.e. indigenisation, take place through a process of ‘learning by doing’. Taking this into consideration, this paper focuses on a few case studies carried out at NISTADS, New Delhi, India, on small enterprises in the formal as well as traditional sectors, highlighting the learning process in an organisational context and how it brings in innovation and technological change at enterprise level. The study demonstrates that the learning environment in an organisational context is an indispensable process to be innovative and building up capabilities for technological change. This in turn also calls for strong networking of the enterprises with academia, R&D institutions and other enterprises, to create knowledge clusters. This builds up a strong case for a network approach of learning organisations not only at the regional level but also at the cross-cultural level for constant innovation and technical change