The example I used in my book is of the doctor and the painter. I hire a doctor because he or she has knowledge that I don't have about the body that I need; so the doctor provides knowledge value to me. However, I hire a painter even though I know how to paint a room. The reason is that I'm a slow painter and I don't have all of the tools to speed up the job; the painter is faster and has all of the tools. The painter provides capacity value to me.
Additionally, I discussed in my book the fact that, from the perspective of the supplier, it is better to provide knowledge value than capacity value. However, I did not provide an example. The best example I have found is that of patented drugs versus generic drugs.
As is well known, when a patent comes off a drug, its price plummets immediately. Why? And why is the price high to start with. Both of these are affects of the change from knowledge value to capacity value caused by the patent. A patent for any product, system, service, or process is the right to gain knowledge value from the invention or innovation on a unique concept or idea.
Creating knowledge value is a two part process; invention and innovation, or research and development. Both require resources (effort over time). Additionally, it requires the organization (or person) to "take on risk (unknowns)". Investing resources in an unknown should be rewarded, or there is much less incentive to invent or innovate--though some people have those urges built into their DNA. One of the rewards is a patent; the right to product the product, system, or service, or use the process for a period of time. If anyone else wants to use the concept or idea, the patent owner must grant the right and garner royalties.
However, a patent requires full disclosure of the concept or idea including internal details and formulas; meaning anyone can copy it. Therefore, a the end of the period of the patent, anyone can copy it. Consequently, during the the period while the patent is in force the inventor/innovator of record can reap the rewards of knowledge value, while at the end of the patent, the product immediately produces only capacity value. The is the reason for the drop in price and the difference between the value produced by knowledge and the value produced by capacity.