Firms tend to invest more in technological R&D than in business R&D

For most companies, investment in technological research and development is crucial to tomorrow’s success. But most companies compete on more than technology alone. They require superior business knowledge and capabilities to outperform their rivals. Yet, the business research and development needed to build up a knowledge advantage is usually scattered throughout the firm. In fact, most companies competing on knowledge don’t actually manage their knowledge. A corporate university should be the focal point of business research and development within a firm. The corporate university’s charter should be to develop and manage the firm’s knowledge infrastructure. This means that corporate universities should be organized to capture the insights, ideas and methods emerging throughout the firm and to pass them on to other employees. Corporate universities should also be able to initiate new business research projects and bring in external experts to supplement internal sources of knowledge. In short, a corporate university should facilitate the firm’s learning.