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on Knowledge Management and Knowledge Economy |
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Issue of 2007‒08‒14
eleven papers chosen by Emanuele Canegrati Catholic University of the Sacred Heart |
| By: | Antonelli Cristiano (University of Turin) |
| Abstract: | Pecuniary externalities are crucial in shaping the distinctive competences and the economic success of innovative firms. The analysis of conditions for localized appropriation associated to the intensive use of idiosyncratic factors by means of the introduction of biased technological change provides a new understanding about knowledge appropriability and stresses the key role of external factors in the exploitation of technological knowledge. |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:200710&r=knm |
| By: | Valentina Bosetti (FEEM); Carlo Carraro (Department of Economics, University Of Venice Ca’ Foscari); Emanuele Massetti (FEEM; FEEM) |
| Abstract: | This paper explores how international knowledge flows affect the dynamics of the domestic R&D sector and the main economic and environmental variables. The analysis is performed using WITCH, a dynamic regional model of the world economy, in which energy technical change is endogenous. The focus is on disembodied energy R&D international spillovers. The knowledge pool from which regions draw foreign ideas differs between High Income and Low Income countries. Absorption capacity is also endogenous in the model. The basic questions are as follows. Do knowledge spillovers enhance energy technological innovation in different regions of the world? Does the speed of innovation increase? Or do free-riding incentives prevail and international spillovers crowd out domestic R&D efforts? What is the role of domestic absorption capacity and of policies designed to enhance it? The new specification of the WITCH model presented in this paper enables us to answer these questions. Our analysis shows that international knowledge spillovers tend to increase free-riding incentives and decrease the investments in energy R&D. We also analyze the implication of a policy mix in which climate policy is combined with a technology policy designed to enhance absorption capacity in developing countries. Significant positive impacts on the costs of stabilising GHG concentrations are singled out. |
| Keywords: | Climate Policy, Energy R&D, International R&D Spillovers, Stabilization |
| JEL: | H0 H2 H3 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:11_07&r=knm |
| By: | Antonelli Cristiano (University of Turin); Scellato Giuseppe |
| Abstract: | The analysis of social interactions as drivers of economic dynamics represents a growing field of the economics of complexity. Social interactions are a specific form of interdependence whereby the changes in the behavior of other agents affect the structure of the utility functions for households and of the production functions for producers. In this paper, we apply the general concept of social interactions to the area of the economics of innovation and technological change. In particular, we discuss how both the knowledge spillovers literature and the Schumpeterian notion of creative reaction can be reconciled within a general framework building on the concept of social interactions within complex dynamics. The paper presents an empirical analysis of firm level total factor productivity (TFP) for a sample of 7020 Italian manufacturing companies observed during years 1996-2005. We show that changes in firm level TFP are significantly affected by localised social interactions. Such evidence is robust to the introduction of appropriate regional and sectoral controls, as well as to econometric specifications accounting for potential endogeneity problems. Moreover, we find evidence suggesting that changes in competitive pressure, namely the creative reaction channel, significantly affect firm level TFP with and additive effect with respect to localised social interactions deriving from knowledge spillovers. |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:200709&r=knm |
| By: | Stefania Albanesi (Columbia University, NBER, and CEPR); Claudia Olivetti (Boston University) |
| 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, improved medical knowledge and obstetric practices reduced the time cost associated with women?s reproductive role. The introduction of infant formula also reduced women?s comparative advantage in infant care, by providing an e¤ective breast milk substitute. Our hypothesis is that these developments enabled married women to increase their participation in the labor force, thus providing the incentive to invest in market skills, potentially narrowing gender earnings di¤erentials. 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 the signi?cant rise in the participation of married women between 1920 and 1960, in particular those with children. By enabling women to reconcile work and motherhood, these medical advancements laid the ground for the revolutionary change in women?s economic role. |
| Date: | 2007–04 |
| URL: | http://d.repec.org/n?u=RePEc:bos:wpaper:wp2007-030&r=knm |
| By: | Abramson, Bruce |
| Abstract: | The decade following India ' s accession to the World Trade Organization ' s Trade-Related Aspects of Intellectual Property ushered in numerous changes to the country ' s patent system, culminating in a series of amendments in 2005. But a functioning patent system is more than a statute. This paper discusses the steps that India must still take to develop an effective, functioning patent system capable of attracting foreign direct investment, motivating domestic innovation and education, and filtering its benefits to all elements of Indian society, including the poor and the possessors of traditional knowledge. The analysis combines data studies of historical and recent patenting activity in India and by Indians, interviews with Indian government officials, intellectual property attorneys, industrialists, and researchers, and lessons gleaned from patent systems abroad. It identifies critical needs and concrete steps to meet them. Improving public awareness of the revenue-generating potential of patents will enhance incentives for the participation of individuals and small and medium enterprises in the patent system. Formalizing guidelines for patents derived through government research funds-coupled with needed changes in institutional governance-will enhance prospects for technology transfer from laboratories to commercial markets. Compensation schemes for traditional knowledge will extend the benefits of intellectual property rights to the poorest members of society. This paper ' s recommendations would help India achieve both a fully functioning patent system and a mechanism for ensuring that poor people living traditional lifestyles receive their share of the social gains that a working innovation system can confer. |
| Keywords: | E-Business,Technology Industry,Labor Policies,Real & Intellectual Property Law,Knowledge Economy |
| Date: | 2007–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4301&r=knm |
| By: | Maddison, David |
| Abstract: | The objective of this paper is to determine the ability of farmers in Africa to detect climate change, and to ascertain how they have adapted to whatever climate change they believe has occurred. The paper also asks farmers whether they perceive any barriers to adaptation and attempts to determine the characteristics of those farmers who, despite claiming to have witnessed climate change, have not yet responded to it. The study is based on a large-scale survey of agriculturalists in 11 African countries. The survey reveals that significant numbers of farmers believe that temperatures have already increased and that precipitation has declined. Those with the greatest experience of farming are more likely to notice climate change. Further, neighboring farmers tell a consistent story. There are important differences in the propensity of farmers living in different locations to adapt and there may be institutional impediments to adaptation in some countries. Although large numbers of farmers perceive no barriers to adaptation, those that do perceive them tend to cite their poverty and inability to borrow. Few if any farmers mentioned lack of appropriate seed, security of tenure, or market accessibility as problems. Those farmers who perceive climate change but fail to respond may require particular incentives or assistance to do what is ultimately in their own best interests. Although experienced farmers are more likely to perceive climate change, it is educated farmers who are more likely to respond by making at least one adaptation. |
| Keywords: | Climate Change,Rural Poverty Reduction,Environmental Economics & Policies,Agricultural Knowledge & Information Systems,Rural Development Knowledge & Information Systems |
| Date: | 2007–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4308&r=knm |
| By: | Gavin Murphy (Economic and Social Research Institute (ESRI)); Iula Traistaru-Siedshlag (Economic and Social Research Institute (ESRI)) |
| Abstract: | Information and communication technologies (ICT) play a central role in the transition to knowledge - based economies. In this paper we analyse the effects of human capital in fostering output growth in ICT manufacturing and services using data from a sample of twenty OECD countries over the period 1980-2002. We focus on within country between industry differences and estimate a system of simultaneous equations to account for simultaneous effects of human capital on physical investment and output growth. The results of our econometric analysis suggest that countries with a high human capital stock experienced faster output growth in ICT producing manufacturing and ICT using services. Also, in countries with high human capital improvement over the analysed period output grew relatively faster in ICT producing manufacturing industries. Furthermore, we find that past country level educational attainment reflected in the human capital stock and human capital accumulation over the analysed period had a direct positive and significant effect on physical capital investment. Our findings indicate that in developed countries human capital is an important factor driving the ICT industries growth. |
| Keywords: | Human capital, ICT industries, Economic growth |
| JEL: | E62 F43 O33 |
| Date: | 2007–03 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp184&r=knm |
| By: | Harabi, Najib |
| Abstract: | Knowledge has always been at the heart of economic growth and development. It is disseminated chiefly through the different stages of education, R&D, the mass media and the translation industry. In Arab countries there has been a widespread impression that there is a low level of translation activities, which in turn has led to a low output of the translation industry in those countries. This paper addresses this issue; its overall objectives are (1) to describe the economic performance of the Arabic book translation industry in Egypt, Lebanon, Morocco, Saudi Arabia, and Syria; (2) to understand empirically the economic performance of that industry, the focus here being on qualitatively analyzing the major determinants (positive and negative factors) affecting the growth process of that industry; and (3) to provide policy makers and business leaders in the Arab region with theoretically sound and evidence-based advice on the issues analyzed in the project. To provide an empirical base for answering those questions, both published data and fresh new data have been used. For the latter purpose, a questionnaire-based survey was conducted in the year 2005 among 190 experts, covering firm representatives and experts in industry and government. The Porter (Diamond) model has been used as a theoretical background. The empirical results were incorporated in five national case studies. This paper synthesizes the results of the national reports, giving a comparative account of the performance of the Arabic book translation industry in the five Arab countries. The overall results suggest that the Arabic book translation industry in these Arab countries has not yet achieved the level of development of other developing and developed countries. Underperformance of the Arabic book translation industry is attributable to (among other factors) severe coordination failures. This is a state of affairs in which the inability of the different agents (translators, book publishers, suppliers, customers, and supporting organizations, state, and so forth) to coordinate their behavior (choices) leads to suboptimal outcomes. Since the economic performance of the translation industry often involves complementary investments whose return depends on other investments being made by other agents, coordination is crucial. Obviously, neither market forces nor the state have undertaken this coordination activity sufficiently. The Arabic book translation industry seems to suffer from both market failure and government failure. In light of these results the Arabic book translation industry offers great economic potential that should be mobilized systematically in the future. This paper discusses how this can be achieved, based on a well-designed and implemented process of upgrading and innovation in companies, industries, and clusters related to translation activities. Public policy, properly understood and adequately implemented, can play an important role in this process. To overcome, or at least to mitigate, some of the major coordination failures in the Arabic translation industry, it is necessary to select an existing pan-Arab nongovernmental organization (NGO) or to create a new one, whose mission would include two major groups of activities: The first action would involve the coordination of activities on the supply side of the Arabic translation industry. This group of activities would encompass the following: 1. Improving the documentation of Arabic translation needs. This can be achieved by creating a regional Internet-based database that would constitute an information base on what has been translated, what is being translated, and what will be translated from foreign languages into Arabic. 2. Designing and implementing translation support programs (including providing financial means) on a sustainable basis. This would create and maintain a critical mass of translators and publishing companies. 3. Promoting translation quality assessment programs. This would mitigate the widely known problem of poor quality translation. 4. Designing and implementing training programs for translators and publishing companies involved in the translation business. This would increase the number of translators and improve the quality of translation activities. 5. Promoting networks among writers, translators, and publishers that facilitate contacts and create opportunities for new translation projects. Such additional communication channels would spur new project development. All these measures are intended to strengthen the supply side of the translation industry in Arab countries. The second action would involve the coordination of activities on the demand side of the Arabic translation industry. The suggested NGO should support readership surveys and promote reading programs. This can be done in collaboration with radio and television stations, print media, schools and universities, and so forth. These measures would help to identify the real needs of the reading public and enhance the culture of reading, especially among young people. |
| Keywords: | Arabic Book market; economics of translation; transaltion industry; Arab world; Egypt; Morocco; Saudi-Arabia; Lebanon; Syria |
| JEL: | Z11 L69 |
| Date: | 2007–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:4385&r=knm |
| By: | Maddison, David; Manley, Marita; Kurukulasuriya, Pradeep |
| Abstract: | This paper uses the Ricardian approach to examine how farmers in 11 countries in Africa have adapted to existing climatic conditions. It then estimates the effects of predicted changes in climate while accounting for whatever farmer adaptation might occur. This study differs from earlier ones by using farmers ' own perceptions of the value of their land. Previous research, by contrast, has relied on either observed sale prices or net revenues, sometimes aggregated over geographically large tracts of terrain. The study also makes use of high resolution data describing soil quality and runoff. Furthermore, it tackles the challenges involved in modeling the effect of climate on agriculture in a study that includes countries in the northern and southern hemispheres, as well as the tropics. The study confirms that African agriculture is particularly vulnerable to climate change. Even with perfect adaptation, regional climate change by 2050 is predicted to entail production losses of 19.9 percent for Burkina Faso and 30.5 percent for Niger. By contrast, countries such as Ethiopia and South Africa are hardly affected at all, suffering productivity losses of only 1.3 percent and 3 percent, respectively. The study also confirms the importance of water supplies as measured by runoff, which, being affected by both temperature and precipitation, may itself be highly sensitive to climate change. |
| Keywords: | Environmental Economics & Policies,Climate Change,Common Property Resource Development,Rural Development Knowledge & Information Systems,Global Environment Facility |
| Date: | 2007–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4306&r=knm |
| By: | Mano, Reneth; Nhemachena, Charles |
| Abstract: | This study uses the Ricardian approach to examine the economic impact of climate change on agriculture in Zimbabwe. Net farm revenue is regressed against various climate, soil, hydrological and socio-economic variables to help determine the factors that influence variability in net farm revenues. The study is based on data from a survey of 700 smallholder farming households interviewed across the country. The empirical results show that climatic variables (temperature and precipitation) have significant effects on net farm revenues in Zimbabwe. In addition to the analysis of all farms, the study also analyzes the effects on dryland farms and farms with irrigation. The analysis indicates that net farm revenues are affected negatively by increases in temperature and positively by increases in precipitation. The results from sensitivity analysis suggest that agricultural production in Zimbabwe ' s smallholder farming system is significantly constrained by climatic factors (high temperature and low rainfall). The elasticity results show that the changes in net revenue are high for dryland farming compared to farms with irrigation. The results show that farms with irrigation are more resistant to changes in climate, indicating that irrigation is an important adaptation option to help reduce the impact of further changes in climate. An overview of farmer adaptation to changing climate indicates that farmers are already using some adaptation strategies-such as dry and early planting, growing drought resistant crops, changing planting dates, and using irrigation-to cushion themselves against further anticipated adverse climatic conditions. An important policy message from the empirical findings is that there is a need to provide adequate extension information services to ensure that farmers receive up-to-date information about rainfall patterns in the forthcoming season so that they make well-informed decisions on their planting dates. Policies that increase farmer training and access to credit and aid facilities and help farmers acquire livestock and other important farm assets can help improve net farm performance. Ensuring the availability and accessibility of fertilizers and crop seeds before the onset of the next cropping season can also significantly improve net farm performance across households. |
| Keywords: | Climate Change,Environmental Economics & Policies,Crops & Crop Management Systems,Agriculture & Farming Systems,Rural Development Knowledge & Information Systems |
| Date: | 2007–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4292&r=knm |
| By: | Eid, Helmy M.; El-Marsafawy, Samia M.; Ouda, Samiha A. |
| Abstract: | This study employed the Ricardian approach to measure the economic impacts of climate change on farm net revenue in Egypt. Farm net revenue were regressed against climate, soil, socioeconomic and hydrological variables to determine which factors influence the variability of farm net revenues. 900 households from 20 governorates were interviewed. The standard Ricardian model was applied, in addition to three other models, each representing an adaptation option that could be used to reduce the harmful effects of temperature stress. A further adaptation strategy was tested: raising livestock on the farm to cope with the harmful effects of climate change. Besides this, the effects of two climate change scenarios (using MAGICC/SCENGEN and GCMs-General Circulation Models) were considered. The results from the two climate change scenarios showed that high temperatures will constrain agricultural production in Egypt. Irrigation and technology are therefore the recommended adaptation options. However, warming may also affect water resources and that would pose another problem for agricultural production. A policy should be developed to cope with the adverse effects of climate change on agriculture. It should focus on three areas: crop management, water management, and land management. The favored option for adapting to increased temperatures is irrigation. Some farmers adjust their crop sowing dates to avoid the expected high temperatures. To adjust to shortages in rainfall, farmers use crop varieties with high water use efficiency and early maturing varieties. |
| Keywords: | Climate Change,Environmental Economics & Policies,Crops & Crop Management Systems,Rural Development Knowledge & Information Systems,Water Supply a nd Sanitation Governance and Institutions |
| Date: | 2007–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4293&r=knm |