The concept organisational channel capacity will be discussed in this book. This will also be related to innovation processes in organisations. We shall look at the relationship between organisational channel capacity and innovation. Then we shall make use of a thought experiment in order to apply Ashby's "Connectance" concept on organisational channel capacity to explain the relation between change at the partial system level and stability at the total system level The book is intentionally closed into a particular field of literature, i.e. the interactive innovation model. The purpose is to describe the role of innovation for firm competitiveness from a systemic point of view, and to review recent literature about the interactive innovation model. Turbulence and complexity in the business environment is growing as we enter the fourth industrial revolution. Innovation is seen as the primary source of sustainable competitive advantages in the fourth industrial revolution. Consequently, the underlying information processes were external information are gathered and put into use, are crucial for companies in their development of innovation, and ultimately their capacity to limit imitation and create sustainable competitive advantages. Through a conceptual model we argue that a prerequisite for the acquisition, development, integration and application of knowledge, is the existence of systemic knowledge processes, percolation processes and networking. It is through these processes that organizations can develop innovations, which ultimately will lead to sustainable competitive advantages.