Chapter 2: Knowledge Discipline

Knowledge is the foundational level of the value creation process framework depicted in Chapter 1. We classified knowledge into two types, instrumental and influential. Instrumental knowledge is that which can be directly used for the development of goods and services. Influential knowledge, on the other hand, is that which influences decisions but is not directly useful for the development of goods and services. In Chapter 2 we focus our attention mainly on instrumental knowledge. Instrumental knowledge is that which can be converted into technology, i.e., has a functionality and an efficiency of converting an input to an output. Influential knowledge is that which influences one or more steps by which instrumental knowledge gets monetized or creates earnings for investors. The impact of knowledge could be extreme in that it could make a step possible or impossible; or it could be more measured in that it could increase or decrease the probability of a step of value creation. The discovery of electricity would be an example of instrumental knowledge, and reading about governmental acceptance of electrification would be an example of influential knowledge. There are two disciplines for obtaining knowledge for growth. They are search and research. The third knowledge OGD is discernible access. These topics are discussed in this chapter.