nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2008‒04‒29
sixteen papers chosen by
Emanuele Canegrati
Catholic University of the Sacred Heart

  1. An Empirical Study about the Impact of Knowledge Accumulation on the Development of Regional Industry By Nobuo Kobayashi
  2. The (non)Theory of the Knowledge Firm By Paul Walker
  3. Knowledge and Technology Transfer from Universities to Business Sector: Evidence from UK Science Parks and Subsidiary Companies By Jashim Uddin Ahmed
  4. Microstructure of Collaboration: The 'Social Network' of Open Source Software By Fershtman, Chaim; Gandal, Neil
  5. Control Rights over Intellectual Property: Corporate Venturing and Bankruptcy Regimes By Sudipto Bhattacharya; Sergei Guriev
  6. Homo Sapiens Sapiens Meets Homo Strategicus at the Laboratory By Ludovic Renou; Ralph C. Bayer
  7. An Analysis to human development indicators in the Arab States By Alrubaie, falah.K.Ali
  8. Education in Russia: The evolution of theory and practice By Natalia Kuznetsova; Irina Peaucelle
  9. Occupational Selection in Multilingual Labor Markets By Quella, Núria; Rendon, Silvio
  10. Patents and Academic Research: A State of the Art. By Nicolas van Zeebroeck; Bruno van Pottelsberghe; Dominique Guellec
  11. Innovative Technology, Social and Economic Sustainability: Evidence from Pakistan By Herani, Gobind M.; Lodhi, Saeed A.K.
  12. Foreign Direct Investment, Competition and Industry Performance. By Jürgen Bitzer; Holger Görg
  13. Genetic Codes of Mergers, Post Merger Technology Evolution and Why Mergers Fail By Alexander Cuntz
  14. Impact of Special Economic Zones on Employment, Poverty and Human Development By Aradhna Aggarwal
  15. Improving Upon the Marginal Empirical Distribuition Functions when the Copula is Known By Segers, J.J.J.; Akker, R. van den; Werker, B.J.M.
  16. Financial Determinants of Foreign Direct Investment By Forssbæck , Jens; Oxelheim, Lars

  1. By: Nobuo Kobayashi (School of Economics, Kwansei Gakuin University)
    Abstract: This study mainly investigated two issues: firstly, the existence of a positive relationship between the accumulation of knowledge stocks in regional industries and their value addition, and secondly, the spillover effects of knowledge stocks from the central cities to the surrounding regions, by using patent data as knowledge stock indicators. The empirical result suggests that there are positive impacts of knowledge accumulation to value addition, and there are positive spillover effects to the surrounding regions. The spillover effects are especially clearer when the creators of knowledge stocks are diversified in central cities, and when the industrial structure of surrounding regions is similar to the central cities.
    Keywords: knowledge accumulation, patent, spillover effect, regional industry
    JEL: O18 O34 R11 R15
    Date: 2008–05
  2. By: Paul Walker (University of Canterbury)
    Abstract: This paper argues that the mainstream approaches to the theory of the firm do not provide a theory of the human capital based or knowledge based firm. We examine the textbook (neoclassical) theory of the firm, the transaction cost model, the incentive-system approach and the Grossman Hart Moore approach to the firm and argue that none of them are able to fully capture the changes to the firm that the movement towards a knowledge economy entails. We also consider the effects of knowledge on the location of production.
    Keywords: Theory of the firm; Knowledge economy; Human-capital based firm
    JEL: L14 L23
    Date: 2008–04–10
  3. By: Jashim Uddin Ahmed (North South University, Bangladesh)
    Abstract: The purpose of this article is to define and discuss technology transfer via science parks or subsidiries companies in the context of higher education. Examples of university technology transfer will be given, and issues surrounding the topic will be discussed here. In the knowledge economy, university technology transfer activities are increasingly crucial as a source of regional and national economic development and revenue for the university. We have discussed here two UK universities technology transfer and their invovement in the local and regioanl economy in details.
    Date: 2008–04
  4. By: Fershtman, Chaim; Gandal, Neil
    Abstract: The open source model is a form of software development with source code that is typically made available to all interested parties. At the core of this process is a decentralized production process: open source software development is done by a network of unpaid software developers. Using data from, the largest repository of Open Source Software (OSS) projects and contributors on the Internet, we construct two related networks: A Project network and a Contributor network. Knowledge spillovers may be closely related to the structure of such networks, since contributors who work on several projects likely exchange information and knowledge. Defining the number of downloads as output we finds that (i) additional contributors are associated with an increase in output, but that additional contributors to projects in the giant component are associated with greater output gains than additional contributors to projects outside of the giant component; (ii) Betweenness centrality of the project is positively associated with the number of downloads. (iii) Closeness centrality of the project appears also to be positively associated with downloads, but the effect is not statistically significant over all specifications. (iv) Controlling for the correlation between these two measures of centrality (betweenness and closeness), the degree is not positively associated with the number of downloads. (v) The average closeness centrality of the contributors that participated in a project is positively correlated with the success of the project. These results suggest that there are positive spillovers of knowledge for projects occupying critical junctures in the information flow. When we define projects as connected if and only if they had at least two contributors in common, we again find that additional contributors are associated with an increase in output, and again find that this increase is much higher for projects with strong ties than other projects in the giant component.
    Keywords: Microstructure of Collaboration; network; open source
    JEL: L17
    Date: 2008–04
  5. By: Sudipto Bhattacharya (NLondon School of Economics, and CEPR); Sergei Guriev (Stockholm School of Economics, Stockholm; Centre for Economic and Financial Research (CEFIR), Moscow, and CEPR)
    Abstract: We develop a theory of control rights in the context of licensing interim innovative knowledge for further development, which is consistent with the inalienability of initial innovator's intellectual property rights (IPR). Control rights of a downstream development unit, a buyer of the interim innovation, arise from his ability to prevent the upstream research unit from forming financial coalitions at the ex interim stage of bargaining, over the amount and structure of licensing fees as well as the mode of licensing, either based on trade secrets or via patenting. We model explicitly the equilibrium choice of the financial structure of licensing fees and show that the innovator's financial constraint is more likely to bind when the value of her innovation is low. By constraining the flexibility of the upstream unit regarding her choice of the mode of licensing of her interim knowledge, the controlling development unit is able to reduce the research unit's payoffs in such contingencies. This incentivises the research unit to expend costly e¤ort ex ante to generate more productive interim innovations. We show that such interim control rights can be renegotiation-proof.
    JEL: D23 K12 O32
    Date: 2008–04
  6. By: Ludovic Renou; Ralph C. Bayer
    Abstract: Homo Strategicus populates the vast plains of Game Theory. He knows all logical implications of his knowledge (logical omniscience) and chooses optimal strategies given his knowledge and beliefs (rationality). This paper investigates the extent to which the logical capabilities of Homo Sapiens Sapiens resemble those possessed by Homo Strategicus. Controlling for other-regarding preferences and beliefs about the rationality of others, we show, in the laboratory, that the ability of Homo Sapiens Sapiens to perform complex chains of iterative reasoning is much better than previously thought. Subjects were able to perform about three iterations of reasoning on average.
    Keywords: iterative reasoning; depth of reasoning; logical omniscience; rationality; experiments; other-regarding preferences
    JEL: C70 C91
    Date: 2008–04
  7. By: Alrubaie, falah.K.Ali
    Abstract: The challenge facing the Arab states at the present time, is how to preserve the gains they achieved in the sphere of human development and giving it a sustainable, by addressing the deficiencies and problems experienced by many of those indicators, and the future development will depend in the Arab world on how to tackle the obstacles that face human development in each country individually, and therefore the Arab states to exert more effort to achieve reforms in the economic sphere through diversification of the structure of the national economy to ensure sustainability in the development process and social importance of controlling the phenomenon of the rise in the rates of population growth and reform imbalance in the situation of women and paying attention to health and the eradication of communicable diseases and in the cultural field need to work on building a modern Arab culture and subjective, can be a centre of the development process, that occupies the site of this new culture heart engine that revolve around economic development processes and human, cultural, scientific, technological and creative, through raising the level of investment in human capital, building the knowledge and skill estimated and intensify education programmes and training and qualification of the workforce, and encourage spending on research and development and interest in the culture of individuals and encourage them to use advanced technical knowledge in the sector and ensure the right to education for all and promote freedom in the cultural and educational institutions and consolidate the foundations of democratic dialogue, in order to raise the efficiency of work and renovation, development and the eradication of illiteracy, because of illiteracy is deterrent to development and social progress and stress-year basic education for all, expansion and diversity in educational institutions, secondary and tertiary and higher education to meet the demands of the labour market and focus on the principle of lifelong education and the preparation of the self-learning which helps rights to adapt to the reality where the player not only continued, or future, only entrench equality and appreciation to all branches of human knowledge and experience, whether pursuant mentally, in practice, organizational, technical, productive, educational or aesthetic
    Keywords: An Analysis to human development indicators in the Arab States
    JEL: J24
    Date: 2006–04–05
  8. By: Natalia Kuznetsova; Irina Peaucelle
    Abstract: This article investigates the relationships between the evolution of Russian social psychology and the transformations of the modes of education in Russia. Social psychology is a science born the last century and also a status of the social conscience of people, forged historically on the basis of proper cultural artifacts. In Russia education is mainly the process of human development and, like wherever, it is the institution of knowledge transmission. We show on the case of Russian history that the scientifically proven educational practice can contribute enriching development of social conscience after ideological and economic shocks.
    Date: 2008
  9. By: Quella, Núria (ITAM, Mexico); Rendon, Silvio (Stony Brook University)
    Abstract: In multilingual labor markets agents with high proficiency in more than one language may be selected into occupations that require high levels of skill in communicating with customers or writing reports in more than one language. In this paper we measure this effect in Catalonia, where two languages, Catalan and Spanish, coexist. Using census data for 1991 and 1996, and controlling for endogeneity of Catalan knowledge, we find that proficiency in speaking, reading and writing Catalan reinforces selection into communication intensive jobs/positions such as entrepreneurial, trade, and service activities; white-collar occupations; and permanent employment. Interestingly, the effect of language on occupational selection is stronger for women than for men.
    Keywords: occupational selection, language, labor markets
    JEL: J24 J61
    Date: 2008–04
  10. By: Nicolas van Zeebroeck (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels.); Bruno van Pottelsberghe (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels, DULBEA, Université Libre de Bruxelles and ECARES, Université Libre de Bruxelles.); Dominique Guellec (OECD -DSTI, Paris.)
    Abstract: The sharp increase in academic patenting over the past 20 years raises important issues regarding the generation and diffusion of academic knowledge. Three key questions may be raised in this respect: What is behind the surge in academic patenting? Does patenting affect the quality and quantity of universities' scientific output? Does the patent system limit the freedom to perform academic research? The present paper summarizes the existing literature on these issues. The evidence suggests that academic patenting has only limited effects on the direction, pace and quality of research. A virtuous cycle seems to characterise the patent-publication relationship. Secondly, scientific anti-commons show very little effects on academic researchers so far, limited to a few countries with weak or no research exemption regulations. In a nutshell, the evidence leads us to conclude that the benefits of academic patenting on research exceed their potential negative effects.
    Keywords: Patent systems, Research Exemption, Academic Patenting.
    JEL: O31 O34 O50
    Date: 2008–04
  11. By: Herani, Gobind M.; Lodhi, Saeed A.K.
    Abstract: This paper assesses the development, perspectives and prospects of innovative technology which would be supporting social and economic sustainability in Pakistan. The study specially examines following points: (i) The trend in growth rate of IT industry. (ii) Comparison of growth at the time of beginning and now. It also draws attention on four factors: introduction of IT, its development, policy issues and innovative methods to implement. Study reveals that Pakistan entered into information age in early eighties. Telecommunication and IT in the country is now growing rapidly. Ministry of telecommunication has recently formulated a strategy for promoting IT industry in Pakistan. The real IT industry requires a world class-enabling infrastructure. In spite of so many prevailing confusions the people of Pakistan have vision and good amount of knowledge. Our education system must create an environment that encourages critical debate with positive dissonance. Information economy in the country needs expansion and improvement that lasts us lifetime. The country is still in the realm of conceptual controversies and is not based on our own experiences to support people’s expectations and relevant to realities of our times. The over all conclusion is that Pakistan has made a moderate growth in social and economic sustainability during the last 59 years. The trend of IT is going up steadily, but the time wise transformation of knowledge from the beginning till today is sluggish. It is less than 1.0% of our GDP.
    Keywords: Innovative Technology; Social and Economic Sustainability; Developing countries;
    JEL: I21 O32 D83 J24 O33
    Date: 2008
  12. By: Jürgen Bitzer; Holger Görg
    Abstract: Abstract: This paper investigates the productivity effects of inward and outward foreign direct investment using industry and country level data for 17 OECD countries over the period 1973 to 2001. Controlling for national and international knowledge spillovers we argue that effects of FDI work through direct compositional effects as well as changing competition in the host country. Our results show that there are, on average, productivity benefits from inward FDI, although we can identify a number of countries which, on aggregate, do not appear to benefit in terms of productivity. On the other hand, a country’s stock of outward FDI is, on average, negatively related to productivity. However, again there is substantial heterogeneity in the effect across OECD countries
    Keywords: Foreign direct investment, inward FDI, outward FDI, productivity, competition
    JEL: F23
    Date: 2008–04
  13. By: Alexander Cuntz
    Abstract: This paper addresses the key determinants of merger failure, in par- ticular the role of innovation (post-merger performance) and technology (ex-ante selection) when rms decide to separate. After a brief review of the existing literature we introduce a model of process innovation where merged firms exibit intra-merger spillover of knowledge under different mar- ket regimes, depending on whether firms integrate vertically or horizontally. Secondly, we describe an ideal matching pattern for ex-ante selection cri- teria of technological partnering, abstracting from nancial market power issues. In a final section we test the model implications for merger failure for M&A data from the US biotechnology industry in the 90s. We find that post-merger innovation performance, in particular with large spillovers, in- creases the probability of survival, while we have no evidence that market power effects do so in long run. Additionally, we find extensive technology sourcing activity by firms (already in the 90s) which contradicts the notion of failure and suits well the open innovation paradigm.
    Keywords: merger failure, innovation performance, technology, matching, open innovation, biotechnology
    JEL: O30 L22 L25 C78 L65
    Date: 2008–04
  14. By: Aradhna Aggarwal (Indian Council for Research on International Economic Relations)
    Abstract: This study aims at examining the impact of Special Economic Zones (SEZs) on human development and poverty reduction in India. It identifies three channels through which SEZs address these issues: employment generation, skill formation (human capital development), and technology and knowledge upgradation. It examines how the impact of SEZs is passed through each of these channels. The study finds that the modality differs significantly according to the characteristics of the SEZs, in particular, the level of their development as reflected in the composition of economic activities. Within this framework, the study examines the sectoral and economic composition of SEZ activities in India. It finds that labour intensive, skill intensive and technology intensive firms co exist in India's zones and, therefore argues that all the three effects described above are likely to be important in the Indian context. Empirical findings reported in the study are based on the data collected from both secondary sources and primary surveys. The primary survey based data was generated through extensive interviews of entrepreneurs and workers across the three largest SEZs (in terms of their contribution to exports and employment) : SEEPZ, Madras and Noida. The analysis reveals that `employment generation' has been the most important channel through which SEZs lend themselves to human development concerns, in India. Employment generated by zones is remunerative. Wage rates are not lower than those prevailing outside the zones. Besides, working conditions, non monetary benefits (such as transport, health and food facilities), incentive packages and social security systems are better than those prevailing outside the zones, in particular, in the small/informal sector. The role of SEZs in human capital formation and technology upgradation is found to be rather limited. The study argues that the zones' potential could not be exploited fully in India. This could primarily be attributed to the limited success of SEZs in attracting investment and promoting exports. The new SEZ policy gives a major thrust to SEZs. However the creation of SEZs alone does not ensure the realization of their potential. The government will need to play a more proactive role for effective realization of the full range of benefits from SEZs.
    Keywords: Special Economic Zones, Human Development, Employment, Poverty, Skill Formation, Technology Transfers, Local R&D
    JEL: F16 J31 J32 O15 O32
    Date: 2007–05
  15. By: Segers, J.J.J.; Akker, R. van den; Werker, B.J.M. (Tilburg University, Center for Economic Research)
    Abstract: At the heart of the copula methodology in statistics is the idea of separating marginal distributions from the dependence structure. However, as shown in this paper, this separation is not to be taken for granted: in the model where the copula is known and the marginal distributions are completely unknown, the empirical distribution functions are semiparametrically efficient if and only if the copula is the independence copula. Incorporating the knowledge of the copula into a nonparametric likelihood yields an estimation procedure which by simulations is shown to outperform the empirical distribution functions, the amount of improvement depending on the copula. Although the known-copula model is arguably artificial, it provides an instructive stepping stone to the more general model of a parametrically specified copula and arbitrary margins.
    Keywords: independence copula;nonparametric maximum likelihood estimator;score function;semiparametric efficiency;tangent space
    JEL: C14
    Date: 2008
  16. By: Forssbæck , Jens (Lund Institute of Economic Research); Oxelheim, Lars (Research Institute of Industrial Economics (IFN))
    Abstract: We argue that mainstream FDI theory underplays financial motivations for interna-tional investment, and suggest several possible channels for a distinct cost-of-capital effect on FDI. Using a sample of European firms’ cross-border acquisitions, and controlling for traditional firm-level determinants of FDI, we find strong evidence in favor of a cost-of-equity effect, whereas the effect of debt costs is indeterminate. We further find that financial determinants are more important for firms originating in relatively less financially developed countries and for firms with high knowledge intensity.
    Keywords: FDI; Cross-border Acquisitions; Investment-q; Cost of Capital; Cross-listing; Segmentation
    JEL: E22 F21 F23 G30 L23
    Date: 2008–04–01

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