Modelling of knowledge flows and their impact

The context of this paper is knowledge as applied to organizations and processes which need to generate a financial income stream, whether for‐profit or not‐for‐profit. Such organizations in the past were usually at arm’s length, operating static (not time‐dependent) work processes. Today, such organizations usually work in very close interaction. This creates a single system of linked nodes of organizations, working in a dynamic regime, even though each node may be a separate legal entity. For such a dynamic linked system, one monitors and measures performance by monitoring and analyzing flow rates and accelerations. The paper shows the three major flows of such a system, which are the flows of money, goods and services, and knowledge. Results of research into such linked and dynamic processes over the last decade are presented in a way which sets the stage for detailed quantitative analyses of the flow rates of knowledge and of the impact of the knowledge flow rate on the flow of money into an organization.