nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2007‒05‒12
sixteen papers chosen by
Emanuele Canegrati
Catholic University of the Sacred Heart

  1. Knowledge and its Economic Characteristics - A Conceptual Clarification By Ulrich Witt; Tom Brökel; Thomas Brenner
  2. Organizations as cognitive systems: what do they process and deliver? By Biggiero, Lucio
  3. The geographical processes behind innovation: A Europe-United States comparative analysis By Riccardo Crescenzi; Andrés Rodríguez-Pose; Michael Storper
  4. Islamization of Knowledge in Economics: Issues and Agenda By Hasan, Zubair
  5. Factor Intensity of Comparative Advantage in Industrialised Countries (in Finnish with an English abstract/summary) By Ville Kaitila
  6. Institutions as Knowledge Capital: Ludwig M. Lachmann’s Interpretative Institutionalism By Foss, Nicolai; Garzarelli, Giampaolo
  7. China and the knowledge economy : challenges and opportunities By Wang, Shuilin; Zeng, Douglas Zhihua
  8. National Innovation Systems in Angola and Mozambique By Manuel, Eduardo
  9. The Relationship between the Beveridge-Nelson Decomposition and Unobserved Component Models with Correlated Shocks By Kum Hwa Oh; Eric Zivot; Drew Creal
  10. Governance of Innovation in the Different Countries of the World By Manuel, Eduardo
  11. Academic Research, Social Interactions and Economic Growth By Carillo, Maria Rosaria; Papagni, Erasmo
  12. Location and R&D Alliances in the European ICT Industry By Rajneesh Narula; Grazia D. Santangelo
  13. What makes a gatekeeper? Insights from the Finnish nano-community By Tuomo Nikulainen
  14. Intellectual Property Rights: Talking Points for RP-US FTA Negotiations By Tantuico, Delia S.; Zshornack, Errol Wilfred
  15. On the Robustness of Alternative Rankings Methodologies: Australian and New Zealand Economics Departments, 1988-2002 By Sinha, Dipendra; Macri, Joseph; McAleer, Michael
  16. A.-R.-J. Turgot on a General Market: Competition, Price and History By José M. Menudo

  1. By: Ulrich Witt (Max Planck Institute of Economics Jena, Evolutionary Economics Unit); Tom Brökel (Max Planck Institute of Economics Jena, Evolutionary Economics Unit); Thomas Brenner (Max Planck Institute of Economics Jena, Evolutionary Economics Unit)
    Abstract: This paper discusses several features of knowledge that are often considered crucial for characterizing the economic significance of knowledge: whether it is overtly accessible or tacit, whether it can be or is encoded or not, and whether it has public or private good character. It is argued that all these features depend similarly on the state of the knowledge technology, i.e. on how knowledge can be acquired, stored, used, and communicated. The different characteristics and the relationships between them are shown to correspond to different specifications of the technology, specifications that are not always made explicit in the literature.
    Keywords: knowledge, knowledge technology, tacitness, ouvertness, public goods, intellectual property rights
    JEL: O31 O34
    Date: 2007–05–07
  2. By: Biggiero, Lucio
    Abstract: The substitution of knowledge to information as the entity that organizations process and deliver raises a number of questions concerning the nature of knowledge. The dispute on the codifiability of tacit knowledge and that juxtaposing the epistemology of practice vs. the epistemology of possession can be better faced by revisiting two crucial debates. One concerns the nature of cognition and the other the famous mind-body problem. Cognition can be associated with the capability of manipulating symbols, like in the traditional computational view of organizations, interpreting facts or symbols, like in the narrative approach to organization theory, or developing mental states (events), like argued by the growing field of organizational cognition. Applied to the study of organizations, the mind-body problem concerns the possibility (if any) and the forms in which organizational mental events, like trust, identity, cultures, etc., can be derived from the structural aspects (technological, cognitive or communication networks) of organizations. By siding in extreme opposite positions, the two epistemologies appear irreducible one another and pay its own inner consistency with remarkable difficulties in describing and explaining some empirical phenomena. Conversely, by legitimating the existence of both tacit and explicit knowledge, by emphasizing the space of human interactions, and by assuming that mental events can be explained with the structural aspects of organizations, Nonaka’s SECI model seems an interesting middle way between the two rival epistemologies.
    Keywords: cognition; emergent properties; knowledge; mental states; organization
    JEL: L20
    Date: 2007–05–08
  3. By: Riccardo Crescenzi (Università degli studi Roma Tre); Andrés Rodríguez-Pose (London School of Economics); Michael Storper (London School of Economics)
    Abstract: The United States and European Union differ significantly in terms of their innovative capacity: the former have been able to gain and maintain world leadership in innovation and technology while the latter continues to lag. Notwithstanding the magnitude of this innovation gap and the political emphasis placed upon it on both sides of the Atlantic, very little systematic comparative analysis has been carried out on its causes. The empirical literature has emphasised the structural differences between the two continents in the quantity and quality of the major \'inputs\' to innovation: R&D investments and human capital. The very different spatial organisation of innovative activities in the EU and the US – as suggested by a variety of contributions in the field of economic geography – could also influence innovative output. This paper analyses and compares a wide set of territorial processes that influence innovation in Europe and the United States. The higher mobility of capital, population, and knowledge in the US not only promotes the agglomeration of research activity in specific areas of the country but also enables a variety of territorial mechanisms to fully exploit local innovative activities and (informational) synergies. In the European Union, in contrast, imperfect market integration, and institutional and cultural barriers across the continent prevent innovative agents from maximising the benefits from external economies and localised interactions, but compensatory forms of geographical process may be emerging in concert with further European integration.
    Date: 2007–04–27
  4. By: Hasan, Zubair
    Abstract: This paper discusses three issues - worldview differences, revelation-reason relationship, and the question of methodology - important for Islamizing knowledge in the field of economics and presents also the outlines of an agenda for action. Western worldview separates the mundane from the spiritual aspect of human existence while Islam keeps the two unified. This makes the goals, scope, and principles of secular economics in many ways different from those of Islam in the area Reason alone is the basis of theoretical formulations in secular economics. Islam too encourages people to use intellect for analyzing observations and draw inferences to discover the truth but within the confines of the Sha’riah : reason is not allowed to violate revelation.Evidently, procedures priorities, and prescriptions, can rarely be the same in the Islamic as in secular economics. Methodology of secular economics essentially is a posterior development. It has invariably sought to rationalize what economists have actually been doing over the centuries so as to fortify the evolving doctrine of free enterprize.In contrast, for Islamic economics the doctrine was already contained in the revelation. To discover- not to invent-has been and remains the task of methodology in Islamic economics. Unlike the secular dispensation, the glide here is from methodology to economics, not vice versa. Agenda outlines focus on considerations in preparing reading materials , and in developing curricula
    Keywords: World view Reason versus revelation doctrine teaching economics
    JEL: A2 A20
    Date: 2007
  5. By: Ville Kaitila
    Abstract: We analyse how comparative advantage and specialisation in foreign trade have formed with respect to factors of production. We divide 217 different sectors of manufacturing into six different classes depending on how capital, labour and knowledge-intensive the production is. We use average wages and R&D expenditure to determine knowledge intensity. The classification is used to analyse the comparative advantage (Balassa index) and specialisation in net exports (Lafay index) of EU countries, other OECD countries, China, Taiwan and Hong Kong at the HS4 digit code. According to the results, the comparative advantage of Finland is two-fold : On the one hand it is in knowledge-intensive goods, and on the other hand in not so knowledge intensive but capital-intensive goods. In terms of net exports, Finland is strongly specialised in the latter class. In 1996-2006, Finland has moved strongly towards a more knowledge-intensive specialisation pattern, however. Compared with the other countries, the factor intensity of Finnish comparative advantage and specialisation is the most similar to that of Sweden and Austria. The Finnish comparative advantage is in a relatively small number of products.
    Keywords: foreign trade, comparative advantage, specialisation, factor intensity
    JEL: F14
    Date: 2007–04–25
  6. By: Foss, Nicolai; Garzarelli, Giampaolo
    Abstract: The paper revisits the socioeconomic theory of the Austrian School economist Ludwig M. Lachmann. By showing that the common claim that Lachmann’s idiosyncratic (read: eclectic and multidisciplinary) approach to economics entails nihilism is unfounded, it reaches the following conclusions. (1) Lachmann held a sophisticated institutional position to economics that anticipated developments in contemporary new institutional economics. (2) Lachmann’s sociological and economic reading of institutions offers insights for the problem of coordination. (3) Lachmann extends contemporary new institutional theory without simultaneously denying the policy approach of comparative institutional analysis.
    Keywords: Comparative institutional analysis; coordination; expectations; institutional evolution; interpretative institutionalism
    JEL: D80 B52 B53 B31
    Date: 2006
  7. By: Wang, Shuilin; Zeng, Douglas Zhihua
    Abstract: The rapid pace of economic growth in China has been unprecedented since the start of economic reforms in late 1970s. It has delivered higher incomes and made the largest single contribution to global pove rty reduction. Measured by international poverty lines, from 1978-2004, the absolute poor population in rural areas has dropped from 250 million to 26.1 million. Such gains are impressive and have been driven largely by a set of market-oriented institutional reforms, strong investment, and effective adoption and application of various knowledge and technologies, especially foreign ones through trade and foreign direct investment. While enjoying tremendous success, China also faces many challenges that need to be addressed to sustain its long-term development. These include weak institutions, low overall educational attainment, weak indigenous innovation capacity, poor links between research and development and industries, and so on. This paper provides an analysis of some strengths, weaknesses, opportunities, and challenges to China ' s knowledge economy in the areas of economic incentives and institutional regime, human capital, innovation system, and information infrastructure.
    Keywords: Tertiary Education,Agricultural Knowledge & Information Systems,ICT Policy and Strategies,Population Policies,Technology Industry
    Date: 2007–05–01
  8. By: Manuel, Eduardo
    Abstract: This work has as objective to approach the theme “National Innovation Systems in Angola and Mozambique”. We concluded that Angola and Mozambique need to define economics policy that have as objective to promote the growth of their GDP per capita and human development. Both government need to define strategies for promotion the internet access for enlarging of knowledge about others cultures that can help on promotion of innovation, and these government should to promote the enlarging of investigators in R&D for also promotion of innovation on divers areas such health, education, etc. And both government should not forget to promote the increase of rate of adult alphabetization that pass for promotion to access of education for people more necessitated and should not forget to promote of protection of intellectual property, and so, firms and companies can employ skilled people and through use of technology advanced can promote innovation and commercialize that, and this skilled people can too discovery and develop better technology and improve innovation system for development of the both countries on globalization era.
    Keywords: Innovation; National Innovation System
    JEL: O34 M19 O57 O32 O33 O14 O31
    Date: 2006–05–15
  9. By: Kum Hwa Oh; Eric Zivot; Drew Creal
    Abstract: Many researchers believe that the Beveridge-Nelson decomposition leads to permanent and transitory components whose shocks are perfectly negatively correlated. Indeed, some even consider it to be a property of the decomposition. We demonstrate that the Beveridge-Nelson decomposition does not provide definitive information about the correlation between permanent and transitory shocks in an unobserved components model. Given an ARIMA model describing the evolution of U.S. real GDP, we show that there are many state space representations that generate the Beveridge-Nelson decomposition. These include unobserved components models with perfectly correlated shocks and partially correlated shocks. In our applications, the only knowledge we have about the correlation is that it lies in a restricted interval that does not include zero. Although the filtered estimates of the trend and cycle are identical for models with different correlations, the observationally equivalent unobserved components models produce different smoothed estimates.
    Date: 2006–07
  10. By: Manuel, Eduardo
    Abstract: This paper has as objective to approach the "Governance of Innovation in the different countries of the World", using information from World Economic Forum. The improve of cooperation between richest and poorest countries and between the poorest countries (between South Africa and Zambia, for example) is necessary to extract lessons and so to solve problems at level of what is necessary, what is missing and what is falling at the progress of nations more poor in knowledge that is cause of low level of innovation and economic development.
    Keywords: Governance; Innovation; Governance of Innovation
    JEL: O38 O57 O39 M29 O31
    Date: 2006–10–09
  11. By: Carillo, Maria Rosaria; Papagni, Erasmo
    Abstract: In this paper we investigate the aggregate implications of social interactions for basic research and economic growth. In particular, we focus on the effects of both the size of the scientific community and the strenght of social exchange among researchers on science productivity and uneven growth. Basic research is modelled as a contest which awards a real prize to the winner and nothing to the losers. Agents are endowed with heterogeneous talent and discoveries are uncertain events which depend on the talent and effort of individuals and on their aggregate values. A CES index of the distribution of both talent and effort summarizes the features of the interactions of the scientific community from which increasing returns may derive. According to the model in equilibrium scientists endowed with higher ability put higher effort into their job, which justifies the famous Lotka effect on the skewed distribution of scientific publications. Social interactions among scientists cause increasing returns to the number of scientists and multiple equilibria, among which a poverty trap with zero knowledge production and zero growth may emerge. Since only the most talented agents join the science sector, economic growth depends positively on its size. Sensitivity analysis of the model shows that if the scientific community is made by on average less complementary people and its size is greater than a threshold then in equilibrium this community will be larger and the growth rate greater. The same effects derive both from a stronger influence of the scientific environment on the aggregate probability of success in scientific races and from a higher share of real resources devoted to basic research.
    JEL: Z13 J24 O41
    Date: 2007–05–04
  12. By: Rajneesh Narula; Grazia D. Santangelo
    Abstract: This paper shows empirically that in an intra-industry oligopolistic scenario the location of a firm’s innovative activities plays an important role in determining its partner selection in R&D alliances. Such a role is mainly attributed to a strategic use of R&D alliances as a means to limit knowledge flows and protect competences, rather than to promote knowledge flows. By drawing on a novel dataset matching alliances and patent data for the European ICT industry, the econometric analysis shows that partners’ prior co-location (at both national and sub-national regional level), previous ties and technological overlap matter in the choice of partner, while common nationality has a negative impact on alliance formation.
    Keywords: Alliances; strategy; efficiency; R&D location
    JEL: D23 F23 O18 O32 R3
    Date: 2007
  13. By: Tuomo Nikulainen
    Abstract: In the process of transferring scientific knowledge to industry the role of individual academics has received less attention than the other actors in this process. This paper aims to identify the characteristics of these key individuals, or gatekeepers, by analysing them within the context of technology transfer in a science and technology community. The estimation results show that individuals who are able to provide firms with relevant research information and results are connected to the firms informally and formally. They have commercial motivations in their research and are more likely to act as gatekeepers in social networks. On the other hand, some of the a priori assumptions of these characteristics fail to have significant influence.
    Keywords: Technology trensfer; nanotechnoligy; social networks; gatekeepers
    JEL: O31 O33 O34
    Date: 2007
  14. By: Tantuico, Delia S.; Zshornack, Errol Wilfred
    Abstract: Intellectual property rights-–copyrights, trademarks, patents, trade secrets, and related rights-–have become increasingly important with the advent of increased international trade, global and knowledge-based economy and fast developing technology. A strong intellectual property rights regime is necessary in order to attract foreign trade and direct investments. For this reason, the protection of intellectual property rights has become an important negotiating item in all FTAs which the United States has entered into. In view of the proposed RP-US FTA negotiations, this paper seeks to determine whether the existing intellectual property regime in the Philippines provides adequate and sufficient legal protection of intellectual property rights. It also seeks to determine whether the administrative and judicial processes are adequate and speedy and acceptable in the enforcement and protection of said rights in the light of FTAs already entered into by the United States with other countries, in general, and with Singapore, in particular, which will be the benchmark for the RP-US FTA. Other relevant issues in the protection of intellectual property rights such as the annual review of ountries by the United States Trade Representative in relation to Special 301 of the U.S. Trade Law; piracy of optical media, including books and pharmaceuticals; and the Trade-Related Aspects of Intellectual Property Rights (TRIPS) are also discussed. The author proposes certain provisions to be added to the Intellectual Property Code; sustained, consistent and stricter implementation of intellectual property laws including more efforts at curbing piracy; and more importantly, a strong political will and a strong determination to strengthen intellectual property rights, as necessary to make the IPR regime up to par with U.S. and international.
    Keywords: World Trade Organization, investment, intellectual property rights, market access, free trade agreement (FTA), trade-related aspects of intellectual property rights (TRIPS), dispute settlement, Optical Media Act, E-commerce Law, legal protection, capability building
    Date: 2006
  15. By: Sinha, Dipendra; Macri, Joseph; McAleer, Michael
    Abstract: Just as friendly arguments based on an ignorance of facts eventually led to the creation of the definitive Guinness Book of World Records, any argument about university rankings has seemingly been a problem without a solution. To state the obvious, alternative rankings methodologies can and do lead to different rankings. This paper evaluates the robustness of rankings of Australian and New Zealand economics teaching departments for 1988-2002 and 1996-2002 using alternative rankings methodologies, and compares the results with the rankings obtained by Macri and Sinha (2006). In the overall mean rankings for both 1988-2006 and 1996-2002, the University of Melbourne is ranked first, followed by UWA and ANU.
    Keywords: University rankings; Citations; Economics departments; Journal rankings; Alternative methodologies
    JEL: A14
    Date: 2007–02–23
  16. By: José M. Menudo (Department of Economics, Universidad Pablo de Olavide)
    Abstract: The purpose of this paper is to re-examine the notion of price determination in A.-R.-J. Turgot’s writings. Consideration is given to the evolution of the concept of market during the 18th century. It is argued that Turgot provided a model of multiple exchanges with merchants, called General market, in order to tackle economic problems, as is the market integration, price stability and the hoarding of capital. Further, we demonstrate how a uniform price, which is kept constantly, required that Turgot made use of theoretical tools from other disciplines.
    Keywords: Turgot, Equilibrium and Disequilibrium, price formation, Information and Knowledge.
    JEL: B1 D50 L11 B41 D83
    Date: 2007–05

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