nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2007‒06‒11
seven papers chosen by
Emanuele Canegrati
Catholic University of the Sacred Heart

  1. The New Social Science Imperialism and the Problem of Knowledge in Contemporary Economics By William Milberg
  2. Diffusion and appropriation of knowledge in different organizational structures By Gabriel Yoguel; Analia Erbes; Veronica Robert; Jose Borello
  3. Strategic Distinguishability with an Application to Robust Virtual Implementation By Dirk Bergemann; Stephen Morris
  4. On the methodology of management research By Rosanas, Josep M.
  5. The Convergence Implications of Biased Technological Diffusion By Ahmed S. Rahman
  6. Industry Specialization, Diversity and the Efficiency of Regional Innovation Systems By Michael Fritsch; Viktor Slavtchev
  7. Agglomeration and Co-Agglomeration of Services Industries By Kolko, Jed

  1. By: William Milberg (New School for Social Research, New York, NY)
    Keywords: imperialism; contemporary economics; knowledge
    Date: 2007–02–23
  2. By: Gabriel Yoguel; Analia Erbes; Veronica Robert; Jose Borello
    Abstract: The central question of this paper is: what are the forces that determine the continuum negative relationship between knowledge diffusion and appropriation in the context of the new techno-productive paradigm? In connection to this question we will make reference to the following issues: [i] How does new knowledge spread in a capitalist economy and how is this issue related to a collusive or classical spread of the benefits of technical progress?; [ii] Does the underlying logic specific to tacit and codified forms of knowledge have a bearing on diffusion and appropriation dynamics?; [iii] Can the creation of cognitive capacities at the organizational level be understood as a relevant form of protection in the economy of the knowledge era?
    Date: 2007–05
  3. By: Dirk Bergemann (Cowles Foundation, Yale University); Stephen Morris (Dept. of Economics, Princeton University)
    Abstract: In a general interdependent preference environment, we characterize when two payoff types can be distinguished by their rationalizable strategic choices without any prior knowledge of their beliefs and higher order beliefs. We show that two types are strategically distinguishable if and only if they satisfy a separability condition. The separability condition for each agent essentially requires that there is not too much interdependence in preferences across agents. A social choice function -- mapping payoff type profiles to outcomes -- can be robustly virtually implemented if there exists a mechanism such that every equilibrium on every type space achieves an outcome arbitrarily close to the social choice function: this definition is equivalent to requiring virtual implementation in iterated deletion of strategies that are strictly dominated for all beliefs. The social choice function is robustly measurable if strategically indistinguishable types receive the same allocation. We show that ex post incentive compatibility and robust measurability are necessary and sufficient for robust virtual implementation.
    Keywords: Mechanism design, Virtual implementation, Robust implementation, Rationalizability, Ex-Post incentive compatibility
    JEL: C79 D82
    Date: 2007–06
  4. By: Rosanas, Josep M. (IESE Business School)
    Abstract: Epistemology, methodology or philosophy of science, i.e., the foundations and validity of knowledge, have never been very popular subjects as applied to management research. Lately, though, the need for better theories and the methodological discussion underlying the creation of such theories appears to be receiving more attention. In this paper, I will review some basic underlying issues in the area by taking a look at to some of the classical authors. I will first analyze Hayek's view of methodological problems in economics and then apply his analysis to the development of management theory. Then, I'll elaborate on Elster's distinction between causal, functional and intentional explanations. Naïve methodological attitudes will be discussed in this context. I will use agency theory as an example of what should and should not be done. Finally, I'll examine the falsification criterion in management theory and discuss the role of mathematics in the development of theory.
    Keywords: epistemology; philosophy of science; methodology; management theory; foundations of management;
    Date: 2007–05–11
  5. By: Ahmed S. Rahman (United States Naval Academy)
    Abstract: This paper presents a model of a developing economy that endogenizes both technological biases and demographic trends. As knowledge diffuses from foreign R&D-producing regions, potential innovators decide which technologies to develop after considering available factors of production, and individuals decide the quality and quantity of their children after considering available technologies. This interaction creates multiple growth paths- some economies develop labor-intensive techniques and expand the pool of unskilled labor; others grow into societies of highly skilled individuals and expanding outputs per capita. I find that if developing countries wish to achieve good prospects for income convergence, they should promote the flow of knowledge from the most developed regions, even if this results initially in a technology-skill mismatch. Such knowledge flows are more likely to promote the twin growths in human capital and technologies characteristic of the biggest economic success stories.
    Date: 2007–06
  6. By: Michael Fritsch (University of Jena, School of Busniess and Economics, Max Planck Institute of Economics Jena, and Institute for Economic Research (DIW Berlin)); Viktor Slavtchev (University of Jena, School of Busniess and Economics)
    Abstract: Innovation processes are characterized by a pronounced division of labor between actors. Two types of externality may arise from such interactions. On the one hand, a close location of actors affiliated to the same industry may stimulate innovation (MAR externalities). On the other hand, new ideas may be born by the exchange of heterogeneous and complementary knowledge between actors, which belong to different industries (Jacobs' externalities). We test the impact of both MAR as well as Jacobs' externalities on innovative performance at the regional level. The results suggest an inverted u-shaped relationship between regional specialization in certain industries and innovative performance. Further key determinants of the regional innovative performance are private sector R&D and university-industry collaboration.
    Keywords: Innovation, technical efficiency, patents, agglomeration concentration, specialization, diversity, regional analysis.
    JEL: O31 O18 R12
    Date: 2007–06–05
  7. By: Kolko, Jed
    Abstract: Economic research on industry location and agglomeration has focused nearly exclusively on manufacturing. This paper shows that services are prominent among the most agglomerated industries, especially at the county level. Because traditional measures of knowledge spillovers, natural resource inputs, and labor pooling explain little of agglomeration in services industries, this paper takes an alternative approach and looks at co-agglomeration to assess why industries cluster together. By considering the location patterns of pairs of industries instead of individual industries, the traditional agglomeration explanations can be measured more richly, and additional measures – like the need to locate near suppliers or customers – can be incorporated. The results show that co-agglomeration between pairs of services industries is driven by knowledge spillovers and the direct trading relationship between the industries, especially at the zip code level. Information technology weakens the need for services industries to co-agglomerate at the state level, perhaps because electronic transport of services outputs lowers the value of longer-distance proximity. These results are in sharp contrast to results for manufacturing, for which labor pooling contributes most to co-agglomeration, and the direct-trading relationship contributes more to state-level co-agglomeration. These differences between services and manufacturing are consistent with simple models of transport costs.
    Keywords: agglomeration; economic geography; services; technology; internet; co-agglomeration; firm location; transport costs
    JEL: R30 R12 L80
    Date: 2007–04

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