nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2007‒06‒30
fifteen papers chosen by
Emanuele Canegrati
Catholic University of the Sacred Heart

  1. Measuring a Society’s Knowledge Base By Khumalo, Bhekuzulu
  2. The Fundamental Theory of Knowledge By Khumalo, Bhekuzulu
  3. Pecuniary Knowledge Externalities and the System Dynamics of Growth By Antonelli Cristiano
  4. Technological Platforms and the Governance of Knowledge: Evidence from Italy and the UK By Consoli Davide; Patrucco Pier Paolo
  5. Point X and the Economics of Knowledge By Khumalo, Bhekuzulu
  6. Born Local: Two Avenues to Internationalization By Zoltan J. Acs; Siri Terjesen
  7. Knowledge Management System for Cluster Development in Small and Medium Enterprises By Pradorn Sureephong; Nopasit Chakpitak; Yacine Ouzrout; Gilles Neubert; Abdelaziz Bouras
  8. Knowledge Assisted Innovation By Benchimol, Guy
  9. Gender Roles and Technological Progress By Albanesi, Stefania; Olivetti, Claudia
  10. Enterprise at the era of Knowledge Economy By Benchimol, Guy
  11. An Equilibrium Theory of Declining Reservation Wages and Learning By Francisco M. Gonzalez; Shouyong Shi
  12. From creativity to innovation By Yusuf, Shahid
  13. Linking Technical Education to Business Growth: A Case Study on Building Technical Skills in India By Basant Rakesh; Chandra Pankaj
  14. Consumption risk, technology adoption, and poverty traps : evidence from Ethiopia By Christiaensen, Luc; Dercon, Stefan
  15. Comparative Advantage Structure of U.S. International Services By Makoto Hisanaga

  1. By: Khumalo, Bhekuzulu
    Abstract: The quest to measure knowledge effectively will in no doubt lead to better knowledge policies of governments around the world in both developing and developed countries. This paper endeavours to seta sound theoretical base for measuring knowledge and does this by demonstrating that existing tools used by economists for measuring knowledge are largely self contradictory, they contradict existing theory. Knowledge to be measured effectively we must give knowledge its own units like weight and length have their own units, only then can we say how much knowledge one needs to carry out a particular task.
    Keywords: knowl; knowledge
    JEL: B41 O2 A1
    Date: 2006–10–09
  2. By: Khumalo, Bhekuzulu
    Abstract: This paper summarizes the theory of knowledge from the book of the same title by the same author. The paper begins by asking, and answering, what knowledge is. In searching for precise definitions it rids itself of the ambiguous term of infinity. The seven main laws of knowledge are laid out and discussed. The theory is an economic theory and as such must mention how people choose to seek knowledge. Knowledge is treated like any other commodity or product such as an apple, copper or a television set. Choices must be made in order to acquire knowledge. The tool used is the same tool used for analyzing other commodities - marginal utility analysis. The paper moves on to develop a working function of knowledge. This function helps to give a clear picture of how knowledge gains and loses occur within a society. The function leads to an understanding of critical levels of knowledge as well as the term obsolete knowledge. The paper introduces the term ‘negative’ knowledge and demonstrates how time is lost and gained within the context of knowledge. The sum of knowledge is the last major issue discussed in this paper and it can be considered the ‘signature’ of the theory. The concept that two plus two is not always four differentiates the commodity knowledge from other commodities and products. Finally the implications of this unique property of the commodity knowledge are discussed with the aim of demonstrating how the world would end up as a better place for all with food, shelter, and security for all.
    Keywords: Knowledge; time; mthetho; konke; critical level; negative knowledge; sum of knowledge
    JEL: O1 A10 D83
    Date: 2006–12–01
  3. By: Antonelli Cristiano (University of Turin)
    Date: 2007–03
  4. By: Consoli Davide; Patrucco Pier Paolo (University of Turin)
    Date: 2007–03
  5. By: Khumalo, Bhekuzulu
    Abstract: In this paper the theory developed in the paper The Fundamental Theory of Knowledge by the same author is developed further. This paper looks at point X, as it exists in the dimension that is called mthetho, the laws that govern the universe. Analyzing point X gives a more firm understanding of knowledge and its properties. The timelessness and independence of point X shall first be established and verified. The paper will eventually demonstrate that the timelessness and independence of this point X is what gives knowledge its power in terms of economics. The concepts developed in the paper. The Fundamental theory of Knowledge are tested against this concept of timelessness and independence of point X, if a contradiction where to be found the theory would have serious contradictions, the paper proves that there are no contradictions. The principles of negative and obsolete knowledge are discussed in relation to point X. The laws of knowledge are tested against point X, against the timelessness and independence of point X. The law of consistency, arguably the most powerful law in investigative knowledge is also discussed in relation to point X; again the paper establishes that there are no contradictions. The law of consistency demonstrates the importance of point X, and therefore knowledge in the economic reality of human beings. Finally the foundations of material progress are discussed in the paper again with point X being the reference point.
    Keywords: knowledge; point X; laws of knowledge; consistency; use knowledge; point U
    JEL: O33 A10 B41
    Date: 2007–02–15
  6. By: Zoltan J. Acs (School of Public Policy, George Mason University, Fairfax, Virginia, USA; Max Planck Institute of Economics, Jena, Germany); Siri Terjesen (Brisbane Graduate School of Business, Queensland University of Technology; Max Planck Institute of Economics, Jena, Germany)
    Abstract: Are firms born Global? Because knowledge spillovers that lead to new venture creation are geographically constrained we believe that firms are born local. It follows that the decision to create sustainable new ventures is independent from the decision to internationalize, even if that is the ultimate goal of the firm. We explore two avenues to internationalize new ventures, a direct path described in much of the extant literature and an intermediated one. New ventures face high entry barriers and intellectual property rights protection to internationalization, which are circumvented by intermediating activities using existing multinational enterprises as facilitators of internationalization. However, new ventures using the intermediated mode of internationalization face transaction costs and rent extraction from multinational enterprises. Therefore, sustainable new ventures face a strategic decision on how to internationalize.
    Keywords: International Entrepreneurship, Multinational Enterprises, Knowledge Spillovers, Intermediated Internationalization, International New Ventures, Foreign Direct Investment
    Date: 2007–06–25
  7. By: Pradorn Sureephong (LIESP - Laboratoire d'Informatique pour l'Entreprise et les Systèmes de Production - [Université Claude Bernard - Lyon I][Université Lumière - Lyon II] - [Institut National des Sciences Appliquées de Lyon]); Nopasit Chakpitak (LIESP - Laboratoire d'Informatique pour l'Entreprise et les Systèmes de Production - [Université Claude Bernard - Lyon I][Université Lumière - Lyon II] - [Institut National des Sciences Appliquées de Lyon]); Yacine Ouzrout (LIESP - Laboratoire d'Informatique pour l'Entreprise et les Systèmes de Production - [Université Claude Bernard - Lyon I][Université Lumière - Lyon II] - [Institut National des Sciences Appliquées de Lyon]); Gilles Neubert (LIESP - Laboratoire d'Informatique pour l'Entreprise et les Systèmes de Production - [Université Claude Bernard - Lyon I][Université Lumière - Lyon II] - [Institut National des Sciences Appliquées de Lyon]); Abdelaziz Bouras (LIESP - Laboratoire d'Informatique pour l'Entreprise et les Systèmes de Production - [Université Claude Bernard - Lyon I][Université Lumière - Lyon II] - [Institut National des Sciences Appliquées de Lyon])
    Abstract: Many countries such as Canada, Japan, Korea and France gains their competitive advantage through the utilization of clusters development. A cluster contains many Small and Medium Enterprises (SMEs) operating in the same or similar industry strongly connected with each other to produce good and services.,In developing country , especially, Small and Medium Enterprises (SMEs) take very important role to their economic. Most governments, as facilitator, support cluster through initiate help and encourage SMEs' linkage to reach the concept of industry cluster. Many literature reviewed claimed that the most difficult processes in creating a cluster is the development and sustain the collaboration to connect these SMEs together. After some investigation, the problem of creating SMEs connection is information sharing at micro-economic level.. Knowledge sharing is one of the most important key success factors of cluster management to gain collaboration among SMEs since there are abundant of explicit and tacit knowledge within each SMEs in a cluster. Naturally, most firms do not want to share their business information and knowledge. In reality, however they needs these information to successfully manage their business cluster. It is crucial and necessary we find out what kind of information or knowledge they want to know and shareable among them in order to manage cluster successfully. Many operation management techniques already existed in many firms. One of the ways to help knowledge sharing operate successfully using information technology as a tool is directed to Knowledge Management System (KMS). This methods can help facilitate the communication and information ow and needs to be investigated further to help maintain the cluster collaboration and knowledge sharing.. This paper propose framework and methodology for analyzing, industry cluster for the sustain the lifecycle of cluster.
    Date: 2007–06–22
  8. By: Benchimol, Guy
    Abstract: In the present world, change has become a necessity for any organization. This change may be the consequence of evolution of technology, market needs or users behaviour as well as, of course,environment (legal, geopolitical,climatic,cultural and so on); it imposes innovations into numerous fields such as products and services,processes and business models. To accomplish such innovations, knowledge management is a must from the front-end of the value chain until its concrete form that is from basic research to practical requirements. This strategic approach may be carried out through a "Project" state of mind and collaborative work for which KM provides the necessary tools.
    Keywords: knowledge; innovation; Real Time Marketing; networks; democratic corporation; participative innovation; K-Maps; human capital; basic research; thought leaders; Fuzzy Front End
    JEL: L21
    Date: 2007
  9. By: Albanesi, Stefania; Olivetti, Claudia
    Abstract: Until the early decades of the 20th century, women spent more than 60% of their prime-age years either pregnant or nursing. Since then, the introduction of infant formula reduced women's comparative advantage in infant care, by providing an effective breast milk substitute. In addition, improved medical knowledge and obstetric practices reduced the time cost associated with women's reproductive role. We explore the hypothesis that these developments enabled married women to increase their participation in the labour force, thus providing the incentive to invest in market skills, which in turn reduced their earnings differential with respect to men. We document these changes and develop a quantitative model that aims to capture their impact. Our results suggest that progress in medical technologies related to motherhood was essential to generate a significant rise in the participation of married women between 1920 and 1950, in particular those with young children.
    Keywords: female labour force participation; gender earnings gap; medical progress
    JEL: E24 J13 J16 J21 J22 J31 N3
    Date: 2007–06
  10. By: Benchimol, Guy
    Abstract: Although left for a few decades the era Taylorism, we have done nothing but enter the era of the accoutable persons i.e. people who, making decisions, are able and have the will to justify them; there is a true request which started to appear in the field of the finance (in France, Law of Financial Safety echoing the law Sarbanes-Oxley in the United States) but which will not fail to extend gradually to the other fields by contagion because the financial field is only the reflection of what takes place within. These accountable persons will justify of as much better the decisions than those will have been made within the framework of a collaborative work; the justification can be based only on facts, reasoning and a context corresponding to a certain number of allowed values of reference by the concerned organization. These facts, this reasoning revealing new facts, these values of reference, all that constitutes knowledge i.e. a whole of signals or stimuli helping us with better perceiving and understanding the world which surrounds us. Either they are preexistent with the process of decision-making or are its consequence, this knowledge must be able to be communicated to any person entitled to justify the decision made even the not-decision (indeed, the fact of not making a decision when a problem has to be solved can paralyse the activity of various recipients to even have serious consequences and must be able to be justified as well as a decision). This need for justification has an indirect effect but great importance; when an activity is carried on and that one has accounts to report, its good execution is not enough to secure you against any critic because it is necessary to be able to show the cogency of this activity and the adopted step, taking into account the aim in view; there is thus a permanent questioning in the light of the evolution of the context and the environment. The justification starting from knowledge is thus not a simple obligation but a factor of progress, innovation and adaptation to the change thus of competitiveness. Let us quote a forum (1) which will interest those who are “seeking to comply with the requirements of this important legislation”; indeed, it offers free downloading of the Act itself and provides a compliance toolkit. In this e-book, you will find two parts: one to explain the conditions of organizing an e-enterprise and the second one to show how you might be able to working out knowledge in a dynamic way. For French speaking KB Members, we recommend interesting hints (2) written by Netegrity’s Didier Schreiber who underlines the consequences of this law from the point of view of IS and security devices. (1) (2) oi_sarbanes_oxley-481.html
    Keywords: capital intellectuel; information; réseau; production; réalité virtuelle; travail collaboratif; commerce électronique; portail; gestion; supply chain; organisation; modélisation; documents; Web services; agents intelligents; Corporate Performance Management; connaissances; métaconnaissances; K-Maps
    JEL: M20
    Date: 2006
  11. By: Francisco M. Gonzalez; Shouyong Shi
    Abstract: In this paper we consider learning from search as a mechanism to understand the relationship between unemployment duration and search outcomes as a labor market equilibrium. We rely on the assumption that workers do not have precise knowledge of their job finding probabilities and therefore, learn about them from their search histories. Embedding this assumption in a model of the labor market with directed search, we provide an equilibrium theory of declining reservation wages over unemployment spells. After each period of search, unemployed workers update their beliefs about the market matching efficiency. We characterize situations where reservation wages decline with unemployment duration. Consequently, the wage distribution is non-degenerate, despite the facts that matches are homogeneous and search is directed. Moreover, aggregate matching probability decreases with unemployment duration, in contrast to individual workers' matching probability, which increases over individual unemployment spells. The difficulty in establishing these results is that learning generates non-differentiable value functions and multiple solutions to a worker's optimization problem. We overcome this difficulty by exploiting a connection between convexity of a worker's value function and the property of supermodularity.
    Keywords: Reservation wages; Learning; Directed search; Supermodularity
    JEL: E24 D83 J64
    Date: 2007–06–25
  12. By: Yusuf, Shahid
    Abstract: Talent is the bedrock of a creative society. Augmenting talent involves mobilizing culture and tradition, building institutions to increase the stock of human capital, enhance its quality, and instill values favoring achievements and initiative. The productivity of this talent in the form of ideas can be raised by nurturing wikicapital-the capital arising from networks. Translating creativity into innovation is a function of multiple incentives and sustaining innovation is inseparable from heavy investment in research. Finally, the transition from innovation to commercially viable products requires the midwifery of many service providers and the entrepreneurship skills of firms small and large.
    Keywords: Education for Development (superceded),ICT Policy and Strategies,Tertiary Education,Agricultural Knowledge & Information Systems,Cultural Policy
    Date: 2007–06–01
  13. By: Basant Rakesh; Chandra Pankaj
    Abstract: Education has been recognized as the most important source of competitive advantage for a nation. It is the key determinant of firm level productivity which in turn drives business growth and profitability. Technical knowledge, in particular, is required both for industrial as well as service development. Technical institutions contribute to the growth of business and industry in a variety of ways. The most influential and direct impact is through their graduates who bring in new skills and perspectives to firms. Industries also seek advanced training on specific topics as well as consultancy from technical institutions. Often these institutions collaborate with academics to design and develop new technologies. In this paper we have argued that technical education plays a crucial role in building these capabilities and consequently in the growth of industry. We use the case study of the Indian technical education system to explore the nature of this system, mechanisms used to govern it, linkages between the education regime and the industry, and the roles that different stakeholders play in ensuring that such a regime delivers sustained advantage to the society. We study the business growth in a few select sectors and the changing needs of technical skills therein. These sectors are agricultural implements, auto-components, chemicals, construction, garments and machine tools. We also illustrate the link between technological innovation and technical skills thereby pointing towards the trajectory of developing industrial competitiveness.
    Date: 2007–03–30
  14. By: Christiaensen, Luc; Dercon, Stefan
    Abstract: Much has been written on the determinants of input and technology adoption in agriculture, with issues such as input availability, knowledge and education, risk preferenc es, profitability, and credit constraints receiving much attention. This paper focuses on a factor that has been less well documented-the differential ability of households to take on risky production technologies for fear of the welfare consequences if shocks result in poor harvests. Building on an explicit model, this is explored in panel data for Ethiopia. Historical rainfall distributions are used to identify the counterfactual consumption risk. Controlling for unobserved household and time-varying village characteristics, it emerges that not just ex-ante credit constraints, but also the possibly low consumption outcomes when harvests fail, discourage the application of fertilizer. The lack of insurance causes inefficiency in production choices.
    Keywords: Economic Theory & Research,Financial Intermediation,Consumption,Insurance & Risk Mitigation,Inequality
    Date: 2007–06–01
  15. By: Makoto Hisanaga (Institute of Economic Research, Kyoto University)
    Abstract: This paper is an investigation of the comparative advantage structure of United States (U.S.) international trade in services. It appears conclusively that the U.S. has a strong comparative advantage in knowledge-based services. For this study, the author adopts the Revealed Comparative Advantage (RCA) index to analyze the structure, and demonstrates that the variances in the RCA deviations indicate a similarity in the export structure between the U.S. and the world. The focus of this study is also on the role of the multinational companies. This view links microeconomic entities and the macroeconomic surroundings.
    Keywords: Trade in Services, Intellectual Property Rights, Comparative Advantage, Competitive Advantage, Revealed Comparative Advantage (RCA), Multinational Companies, Offshoring
    JEL: C02 F01 F23
    Date: 2007–06

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