For knowledge application, Carneiro (2000) finds that the KM system is a key component in innovation and competitiveness. From an application perspective, a close relationship exists between a company’s management of innovation and its management of knowledge. The two functions proceed from similar basic values (e.g., the conversion of implicit into explicit knowledge) and utilize similar instruments (e.g., experience groups and quality circles) (Zaugg & Thom, 2003).