Division of interfirm activities in the knowledge-based economy: The crucial role of knowledge processors

In order to capture market dividends and stay at par with the competition in the knowledge-based economy, firms must constantly develop their skill profile. There is considerable scope for learning through interfirm learning processes. However, the uncertain and costly nature of this process hampers exchange of knowledge in interfirm networks. This opens up for a new form of intermediary specialised in the absorption, generation, and dissemination of knowledge: the knowledge processor. This contribution addresses the core strategic issues faced by this type of firm, and illustrates the process through a case study of a knowledge processor.