nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2008‒03‒25
eleven papers chosen by
Emanuele Canegrati
Catholic University of the Sacred Heart

  1. Penetrating the Knowledge Filter in "Rust Belt" Economies By Zoltan Acs; Lawrence A. Plummer; Ryan Sutter
  2. Evolution of the knowledge base in knowledge intensive sectors By Jackie Krafft; Francesco Quatraro; Paolo Saviotti
  3. The Need of Knowledge Management Strategy for the Successfully Implementation of Reengineering Projects By Stefanescu, Laura; Stefanescu, Andy
  4. The Relationship between Knowledge Intensity and Market Concentration in European Industries: An inverted U-Shape By Niels Krap; Johannes Stephan
  5. Realities and perspectives of Romanian knowledge-based economy in the context of EU integration By Burja , Camelia; Burja, Vasile
  6. Information Independence and Common Knowledge By Olivier Gossner; Ehud Kalai; Robert Weber
  7. From Formal Subsumption to General Intellect: Elements for a Marxist Reading of the Thesis of Cognitive Capitalism, in Historical Materialism By Carlo Vercellone
  8. Revealing Agglomeration Economies with Stochastic Frontier Modelling in the Finnish ICT Industry By Elina Berghäll
  9. Self-Knowledge and Self-Deception By H. Peyton Young
  10. Innovation systems governance in Bolivia: Lessons for agricultural innovation policies By Hartwich, Frank; Alexaki, Anastasia; Baptista, Rene
  11. Towards Economics as a Natural Science By Yuri Maksimenko

  1. By: Zoltan Acs (George Mason University; Max Planck Institute of Economics, Jena); Lawrence A. Plummer (Clemson University); Ryan Sutter (George Mason University)
    Abstract: A new model of economic growth introduces the knowledge filter between new generic knowledge and economically-useful knowledge. It identifies both the formation of new ventures and the absorptive capacity of incumbent firms as the mechanisms that penetrate the knowledge filter. Recent empirical work has shown that new firms are more proficient at penetrating the knowledge filter than are incumbent firms; however, the analysis has only examined expanding economies and has relied on purely cross-sectional regression methodologies. This study explores the role of new and incumbent firms in penetrating the knowledge filter utilizing recent developments in spatial panel estimation techniques to provide a more robust set of findings. The results suggest that new firms are more proficient at penetrating the knowledge filter in declining and growing regions alike.
    Keywords: Entrepreneurship, Knowledge, Regional Growth, Endogenous Growth
    JEL: L26 O1 O18 O3 R1
    Date: 2008–03–14
  2. By: Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Paolo Saviotti (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis)
    Abstract: In a knowledge based society the creation and utilisation of knowledge become the key factors determining the competitiveness of firms, regions and countries. In this perspective a considerable effort is today dedicated to characterise the knowledge base of different sectors in the economy and to detect its impact on firm performance and on industrial organization (Breschi, Lissoni, and Malerba, 2003; Krafft, 2004; Nesta and Saviotti, 2005). Although all sectors in modern economies are affected by a growing knowledge intensity, some sectors are influenced more than the average. We call these Knowledge Intensive Sectors (KISs). In this paper we map the dynamics of knowledge generation within three KISs: biotechnology, telecommunications and electronics. The first question which is addressed is how to characterize a KIS. Typically we would expect KISs to have a high R&D intensity, to produce more patents and publications than less knowledge intensive sectors and to have a greater impact of knowledge production on firm performance and on sectoral growth. A further and important aspect of KISs is the presence of discontinuity in knowledge. Not that such discontinuities are present only in KISs: other sectors are going to be affected, although often less directly, by these discontinuities. However, KISs are likely to be the first ones to start exploring new forms of knowledge and to move them towards exploitation. Thus, we can expect the dynamics of knowledge generation and utilization in KISs to be affected by both (i) the rate of knowledge creation and (ii) the presence of discontinuities in new knowledge. It follows that in order to be able to link the dynamics of knowledge creation and utilization to firm performance and to industrial organization we need to detect a number of properties of the knowledge base (KB) of KISs. Properties such as the diversity/variety of the KB, its coherence and its cognitive distance (or conversely its similarity) between different KBs have already been shown to be potential determinants of firm performance. The aim of this paper is to contribute to this new literature by characterizing the evolution of the KB in three KISs, namely biotechnology, telecommunications and electronics. We use data from the European Patent Office database (EPO database) to see whether we can find common trends in the evolution of the KB of these three KISs.
    Date: 2008–03–14
  3. By: Stefanescu, Laura; Stefanescu, Andy
    Abstract: This paper want to shown that current knowledge management approaches do not emphasise enough on knowledge sharing from reengineering project perspective. To achieve success with reengineering project, an organisation must possess and share knowledge about many different facets of this process. While many reengineering projects have resulted in improve performance, we believe that higher levels of performance improvement are possible by coupling IT capabilities with KM strategy. To explain these results it was assumed that the key to implementing with success reengineering project is having a wide knowledge management strategy. Our objective for the paper reported here was to understand the factors that motivate to share knowledge before implementing any knowledge management strategy to sustain the successfully implementation of reengineering projects.
    Keywords: Information Technologies; knowledge; knowledge management; strategy; reengineering; project
    JEL: M21
    Date: 2008–03–16
  4. By: Niels Krap; Johannes Stephan
    Abstract: This paper is motivated by the European Union strategy to secure competitiveness for Europe in the globalising world by focussing on technological supremacy (the Lisbon - agenda). Parallel to that, the EU Commission is trying to take a more economic approach to competition policy in general and anti-trust policy in particular. Our analysis tries to establish the relationship between increasing knowledge intensity and the resulting market concentration: if the European Union economy is gradually shifting to a pattern of sectoral specialisation that features a bias on knowledge intensive sectors, then this may well have some influence on market concentration and competition policy would have to adjust not to counterfeit the Lisbon-agenda. Following a review of the available theoretical and empirical literature on the relationship between knowledge intensity and market structure, we use a larger Eurostat database to test the shape of this relationship. Assuming a causality that runs from knowledge to concentration, we show that the relationship between knowledge intensity and market structures is in fact different for knowledge intensive industries and we establish a non-linear, inverted U-curve shape.
    Keywords: market structure, knowledge intensity, competition policy
    JEL: L16 L40 O33
    Date: 2008–03
  5. By: Burja , Camelia; Burja, Vasile
    Abstract: Developing the knowledge-based economy constitutes one of the strategic priorities of the European Union which aims the increase of the performance and economic competitiveness, and Romania like membership country has assumed this important objective. In the paper are carry out the general features of the knowledge-based economy, the competitiveness of Romania within the European Union from this perspective and there are formulated some directions of action in order to achieve the mentioned objective.
    Keywords: knowledge-based economy; economic competitiveness; European integration; policy innovation; knowledge management
    JEL: O1 O11
    Date: 2008–03–19
  6. By: Olivier Gossner; Ehud Kalai; Robert Weber
    Abstract: Conditions of information independence are important in information economics and game theory. We present notions of partial independence in Bayesian environments, and study their relationships to notions of common knowledge.
    Keywords: Bayesian games, independent types, common knowledgees
    Date: 2007–10
  7. By: Carlo Vercellone (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    Abstract: Since the crisis of Fordism, capitalism has been characterised by the ever more central role of<br />knowledge and the rise of the cognitive dimensions of labour. This is not to say that the centrality<br />of knowledge to capitalism is new per se. Rather, the question we must ask is to what extent we can<br />speak of a new role for knowledge and, more importantly, its relationship with transformations in<br />the capital/labour relation. From this perspective, the paper highlights the continuing validity of<br />Marx’s analysis of the knowledge/power relation in the development of the division of labour. More<br />precisely, we are concerned with the theoretical and heuristic value of the concepts of formal<br />subsumption, real subsumption and general intellect for any interpretation of the present change of<br />the capital/labour relation in cognitive capitalism. In this way, we show the originality of the general<br />intellect hypothesis as a sublation of real subsumption. Finally, the article summarises key<br />contradictions and new forms of antagonism in cognitive capitalism.
    Keywords: crisis; division of labour; knowledge; formal subsumption; real subsumption; general intellect; cognitive capitalism; diffuse intellectuality
    Date: 2007–03
  8. By: Elina Berghäll
    Abstract: Agglomeration economies are sought with stochastic frontier methodology to analyse their role in the extraordinary productivity growth of the knowledge-intensive information and communication technology (ICT) equipment industry in Finland. Results suggest that the method, though imprecise, is useful for identifying developments in agglomeration economies. The main empirical result is that the highly increasing scale elasticities (i.e., relative to firm size) found in the sector are more industry and firm size related, than location related external economies of scale. Policy-wise, there are two neglected concerns: (i) Agglomeration economies have weakened with the industry life cycle, and the maturing of the underlying technology towards mass production is well under way in the industry, with R&D saving and labour using technical change. (ii) The deployment of R&D subsidies as instruments of regional policy may harm long term competitiveness in dispersing innovation intensive activities to low spillover areas and by disrupting the creation of persistent location-specific advantages.
    Keywords: Agglomeration, productivity, scale, technical change, efficiency
    Date: 2008–01–14
  9. By: H. Peyton Young
    Abstract: A person is concerned about self-image if his utility function depends, not only on his actions, but also on his beliefs about what sort of person he is. This dual motivation problem makes it difficult, and in some cases impossible, for someone to learn who he really is based solely on his revealed behavior. Indeed, there are very simple situations, involving just two actions and two possible identities, such that, if there is any initial uncertainty about one's true identity, it will never be resolved even when one has an infinite number of opportunities to act.
    Keywords: Knowledge, Self-Signalling, Learning
    JEL: C70 D83
    Date: 2008
  10. By: Hartwich, Frank; Alexaki, Anastasia; Baptista, Rene
    Abstract: "Traditional approaches to innovation systems policymaking and governance often focus exclusively on the central provision of services, regulations, fiscal measures, and subsidies. This study, however, considers that innovation systems policymaking and governance also has to do with the structures and procedures decision makers set up to provide incentives for innovating agents and the interaction and collaboration among them, thus enabling innovation. Based on the concepts of agent-centered institutionalism and innovation systems, governance can be understood to refer to integrating multiple government and non-government actors in different actor constellations depending on roles, mandates, and strategic visions. Any effort to govern the system composed of those agents needs to take into account the limitations that any policymaking body has in dictating how agents behave and interact. In consequence governance in innovation systems has less to do with executing research and administering extension services and more to do with guiding diverse actors involved in complex innovation processes through the rules and incentives that foster the creation, application, and diffusion of knowledge and technologies. The report presents results from a study that analyzed to what extent the Bolivian Agricultural Technology System (SIBTA), as part of the country's agricultural innovation system, has complied with a set of governance principles—including participation of stakeholders (especially small farmers) in decision making, transparency and openness, responsiveness and accountability, consensus orientation and coherence, and strategic vision—and compares those principles with benchmarks of innovation systems governance in five other developing countries. Data in Bolivia were collected by means of an expert consultation and interviews with a wide range of key actors and stakeholders from various organizations involved in agricultural innovation in the system. The empirical findings of the study suggest the following: A research and technology transfer program such as SIBTA constitutes only part of an innovation system and there are other important complementary functions with which the government has to comply to foster innovation. Rather than aiming to carry out research and extension, governments should focus on overall planning on the macro level and bringing the above functions together so they reach the innovating agents. To do this they need to involve themselves in planning and policy analysis, the setting of consultation platforms, supporting the building of innovation networks, and setting up specific funding mechanisms. Setting up decentralized semiautonomous agencies that administer funds and design innovation projects does not automatically lead to sufficient participation of local producer organizations and technology providers. More participation requires special rules and incentives to collaborate and the special efforts of all involved, and eventually further decentralization on the regional level. Weak leadership and limited commitment, rather than a decentralized structure or the delegation of too much power, have prevented governments from taking a more active role in governing their innovation systems. Decentralization, however, should not stand in the way of a national strategic vision, and mechanisms need to be put in place to discuss and harmonize national- and local-level priorities. Simply being responsive to the demands of farmers does not necessarily imply that one is generating the best technical solutions. Generating adequate innovations requires the participation of many: leading and other producers, knowledge and technology providers, buyers, input sellers, funding agencies, advisory services, and others. It also requires analysis and identification of technological and market opportunities. Policymakers should foster in-depth analysis of farmers' demands on the local level through decentralized organizations, which simultaneously help to orient these demands to where technological and market opportunities lie. This requires improved analytical and planning capacities as well as intensive communication with the farmers and agents who benefit from new and promising technologies." from Authors' Abstract
    Keywords: Agricultural innovations, Governance, Innovation Policy, Agricultural Innovation System,
    Date: 2007
  11. By: Yuri Maksimenko
    Abstract: A hypothesis has been suggested for economics to become a natural science. The object of the science would be the system of reproduction of the life of people. The source of data would be the vague perceptions of experts. The instrument would be a language of generalized terms. The criterion of truth would be the consensus of opinions. The sphere of application would be the global economy. The method of application would be the proliferation of knowledge through the World Wide Web to produce social synergy forces within the economy.
    JEL: A10 A12 A13
    Date: 2008–03

This nep-knm issue is ©2008 by Emanuele Canegrati. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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