INNOVATION AND KNOWLEDGE IN THE DIGITAL MEDIA SECTOR.

Academic research on service innovation has highlighted the distinct characteristics of services innovation, the knowledge complexes involved, and how services can be autonomous sites of innovation. It also highlights that successful services innovations are often not technology based but can depend on new organizational or managerial practices or marketing and distribution strategies. This paper makes an empirical and a conceptual contribution to this literature by focusing on one sub-sector of the services sector: digital media applications and services. Conceptually, this paper is interdisciplinary and draws upon a range of work on innovation and production in media and communication studies, innovation studies, evolutionary economics, and sociology. Empirically, this paper draws on ten years of qualitative case study research focused on innovation in the digital media sector in Ireland and, to a lesser extent, Europe. More specifically, we draw upon research on the internet, mobile, and games sectors. A key finding emerging from this research is that, despite the widespread popular and academic focus on technology and codified knowledge, a much broader knowledge base (particularly tacit, creative and non-technological knowledge) underpins successful innovative practices in digital media firms. This paper examines the combination of creative ideas and skills, social learning processes of content creators, management, market and business knowledge that underpin the development new digital media applications and services. It argues that a better understanding of the character of knowledge inputs and the innovative practices in digital media companies may contribute to a better understanding of innovation in the knowledge economy. [ABSTRACT FROM AUTHOR]