For Coase, organisations exist because they manage resources more efficiently than markets can. In contrast, for Grant,
organisations exist because they are more efficient at integrating knowledge. Therefore, according to Grant, certain types of
knowledge, such as tacit knowledge, cannot be transferred efficiently; problem solving therefore needs to be devolved to the
level of the individual. Similarly, the work of Hayek and von Hippel suggests that knowledge is ‘sticky’ and cannot easily be
transferred. In this paper the argument is made that a second generation of problem solving research and development
management systems need to be developed; as a global system of distributed problem solving, in order to be able to deal with
specific types of problems, termed ‘catastrophic events’, that may arise.
