Capability of Integrating Knowledge and NPI: Analysis from a CASE from China

Innovation is the power for China firms to enter new market. How to innovate is a problem. The paper thinks innovation is based on knowledge. Knowledge is both from internal and external sources. Firms should screen the firm needed knowledge for product innovation. If the firms´ internal existing knowledge is not enough for product innovation, the firm need integrate the external knowledge. This is decided by firm´s capability of integrating knowledge. Firms with stronger knowledge integration capability will achieve better product innovation performance. The paper analyzes a case from China to explain the product innovation process and to show the knowledge integration capability. From the case, the paper summarizes the product innovation mode based on knowledge integration capability. This mode is meaningful for Chinese firm with less knowledge to conduct product innovation