Splitting the innovation jargon: competences, capabilities and resources

I have been struggling with the jargon of innovation - and the stuff that gives innovation consultants a bad name - for a book chapter that I'm currently writing, edited by Tim Jones from the GrowthAgenda, on Amazon and Google. The book will be out next year, and I'm currently exploring the competences and capabilities of those firms. What does each of these terms mean? They're often used interchangeably.

This paper, from the US Army, strangely enough, does a good job at defining them: it talks of competences as unique and able to differentiated, while capabilities are the processes of executing tasks - the trains running on time. Resources then, provide the underlying support. The axe analogy shows how they need to be aligned in order to compete and win in a new market. For any N people, there seem to be N+1 explanations of these terms. But for me, this dry, ascetic and efficient exposition, does the trick.

From the paper: 

The sharp edge of the axe blade represents the core competencies of the company to create a better product. The edge is honed through research and development, the application of new materials, the creation of new state-of-the-art production capabilities, or the application of products from an adjacent industry. This sharp edge penetrates the market and separates established product relationships.

Separating established relationships is not sufficient for taking market share. Following the edge there must be an organizational wedge that is designed to push aside competing products and replace them with the new competitor’s products. The wedge represents the capabilities of the company to continuously deliver the products and services. This includes manufacturing, logistics, marketing, partnerships, labor relations, and a host of other capabilities to follow-up on the disruptive entry of the edge of the axe into the market.

Finally, the sledge represents the resources of the company to continue to feed competencies and capabilities. The resource sledge includes the people, factories, logistics systems, natural resources, and finances necessary to push the edge and wedge deeper into the market, opening a wider space for the new competitor’s products and services.