nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2008‒10‒07
fifteen papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. Regional Knowledge base and productivity growth: the evidence of italian manufacturing By Quatraro Francesco
  3. Technological Progress, Organizational Change and the Size of the Human Resources Department By Raouf Boucekkine; Patricia Crifo; Claudio Mattalia
  4. Irreversible R&D investment with inter-firm spillovers By Gianluca Femminis; Gianmaria Martini
  5. The Future of Industrial Policies in the New Millennium: Toward a Knowledge-Centered Development Agenda By Mario Cimoli; Giovanni Dosi; Joseph E. Stiglitz
  6. The Innovation and Entrepreneurship Latinamerican Scoreborard: The impact of University-Industry Cooperation in Ecuador By Massón-Guerra, José Luis
  7. ICT in public administration and SMB companies: four years of new challenges By [Vymetal], [Dominik]
  8. An exploration of local R&D spillovers in France By Jacques MAIRESSE (CREST-ENSAE, UNU-MERIT & NBER); Benoît MULKAY (LEREPS-GRES)
  9. Direction and intensity of technical change: a micro-founded growth model By zamparelli, luca
  10. Entrepreneurship Spillover and the determinants of Key Sectors for new business creation: An inter-sectorial approach By Massón-Guerra, José Luis; Vendrell-Ferrero, Ferran
  11. The Extension of Clusters: Differences-in-Difference Evidence from the Bavarian State-Wide Cluster Policy By Oliver Falck; Stephan Heblich; Stefan Kipar
  12. Innovation policy in a complexity perspective: levels and levers for policy intervention By Federica Rossi; Margherita Russo
  13. Value Creation in the Interface of Industry and Academy - A Case Study of Intellectual Capital of Technology Transfer Offices At US Universities By Antti-Jussi Tahvanainen; Raine Hermans
  14. Big and beautiful? On non-parametrically measuring scale economies in non-convex technologies By Kristof De Witte; Rui C. Marcques
  15. A new challenge for higher education in Romania –entrepreneurial universities By Sitnikov, Catalina Soriana

  1. By: Quatraro Francesco (University of Turin)
    Abstract: This paper empirically analyzes the effects of regional knowledge base on differential growth rates. Beyond the traditional view of knowledge as an homogenous asset, it considers further characteristics that qualify its heterogeneous features. The results of the empirical estimations provide support to the idea that knowledge characteristics are fare more important than knowledge capital. The check for spatial dependence suggests that crossregional externalities exert additional triggering effects on productivity growth, but without debasing the effects of knowledge. Important policy implications stem from the analysis, in that regional innovation strategies ought to be carefully coordinated so as to reach a higher degree of internal coherence and exert positive effects on productivity.
    Date: 2008–09
  2. By: Pasquale De Muro; Salvatore Monni; Pasquale Tridico
    Abstract: The paper analyses the changed development path of the metropolitan area of Rome. It aims to analyse the evolution and modernization of Rome in the last thirty years and to examine whether or not the consequent cultural regeneration promotes social cohesion. To this end we focus on both structural and institutional change in Rome, trying to identify the main ruptures and continuities in the development path, as well as the driving forces of the new model. After WWII, Rome was generally considered to be a cumbersome capital city, with a heavy bureaucracy sector and without any strong “local” political forces and social movements capable of bringing about economic and political change. Nevertheless, a new and more democratic local governance and subregulation mode have emerged during the post-Fordist era, which have allowed for the production and reproduction of new socioeconomic relations that in turn influenced a new economic model for the city. This new governance is an important leading theme; it brings about some interesting forms of “democratisation” that are difficult to find in other post-Fordist metropolises. The new economic model is characterised, on the one hand, by the development of the advanced tertiary sector, i.e., knowledge intensive services, tourism services, business services, cultural industries, R&D activities. On the other hand, the Roman model is also characterised – in line with other national and global metropolises – by forms of social exclusion, a new poor, and polarisation between the peripheries and central/high income districts, in a sort of multi-speed development. At the same time, the traditional bureaucracy and its connected “state bourgeoisie”, although still relevant, are no longer dominant. New service activities have brought about new agents, new powers and new institutions. In addition to a review of the literature and an analysis of existing statistics, interviews were undertaken with informed political leaders and economic and social actors of the emblematic moments of change in order to capture the driving forces of the new development path.
    Keywords: urban modernization, knowledge-based economy, human development
    JEL: O15 O18
    Date: 2008–05
  3. By: Raouf Boucekkine (CORE -); Patricia Crifo (LEEP - Laboratoire d'econometrie de l'école polytechnique - CNRS : UMR7657 - Polytechnique - X); Claudio Mattalia (Université Catholique de Louvain. -)
    Abstract: Les changements organisationnels reposant sur la polyvalence et les TIC qui se sont diffusés dans la plupart des pays de l'OCDE depuis les années 1990 ont de fortes conséquences sur les conditions de travail. Les données disponibles montrent, parallèlement à l'émergence de nouvelles formes organisationnelles fondées sur la polyvalence, une augmentation de la main d'oeuvre employée dans les postes managériaux et une augmentaion des besoins en qualification. Cet article propose un modèle théorique analysant l'allocation optimale du nombre de tâches par individu lorsque le passage à une organisation fondée sur la polyvalence accroît les coûts de coordination entre les individus et les tâches. Les entreprises peuvent réduire ces coûts de coordination en affectant plus de salariés à la gestion des ressources humaines. Le capital humain est accumulé de manière endogène par les travailleurs. Le modèle reproduit assez bien les régularités observées dans les données. En particulier, des accélérations technologiques endogènes tendent à accroître à la fois le nombre de tâches tréalisées et les besoins en qualification, tout en augmentant la part de la main d' qui se consacre à la gestion des ressources humaines.
    Date: 2008
  4. By: Gianluca Femminis (DISCE, Università Cattolica); Gianmaria Martini (Università di Bergamo)
    Abstract: In our duopoly, an irreversible investment incorporates a significant amount of R&D, so that the improvement it introduces in production processes generates a spillover lowering the second comer's investment cost. The presence of the inter-firm spillover substantially affects the equilibrium of the dynamic game: for low -- and hence realistic -- spillover values, the leader delays her investment until the stochastic fundamental has reached a level such that the follower's optimal strategy is to invest as soon as he attains the spillover. This bears several interesting implications. First, because the follower invests upon benefiting from the spillover, in our equilibrium the average time delay between the two investments is short, which is realistic. Second, we show that in case of a major innovation, an optimal public policy requires a substantial intervention in favour of the investment activity; moreover, an increase in uncertainty -- delaying the equilibrium -- calls for higher subsidization rates. Third, we find, by means of numerical simulations, that the spillover reduces the difference in the leader's and in the follower's maximum value function. Accordingly, our model can help generating realistic market betas.
    Keywords: irreversible investment, knowledge spillover, dynamic oligopoly
    JEL: C73 L13 O33
    Date: 2008–09
  5. By: Mario Cimoli; Giovanni Dosi; Joseph E. Stiglitz
    Abstract: The paper present the conclusions to the book "The Political Economy of Capabilities Accumulation: the Past and Future of Policies for Industrial Development", edited by M. Cimoli, G. Dosi and J. E. Stiglitz, Oxford University Press, forthcoming. While it is futile to search for any 'magic policy recipe' automatically yielding industrialization, the contributions to the book, we argue, do indeed help in identifying some basic ingredients and principles that successful policy arrangements historically had and have in common. In this concluding chapter we spell out some of them. They include: (i) an 'emulation philosophy' vis-à-vis the most promising technological paradigms; (ii) various measures safeguarding the possibility of 'infant industry learning', involving also the purposeful 'distortion' of market signals as they come from the international arena; (iii) explicit policies of capability-building directed both at education and training but also at nurturing and shaping specific corporate actors; (iv) a 'political economy of rent-management' favourable to learning and industrialization, while curbing the exploitation of monopolist positions; (v) measures aimed to foster and exploit a weak Intellectual Property Rights regime, especially with respect to the companies of the developed world; (vi) strategies aimed at avoiding the 'natural resource course'; (vii) 'virtuous' complementarities between industrial policies and macroeconomic management. Further the chapter discusses the opportunities and constraints associated with the current regimes of trade and IPR governance and puts forward some basic building blocks of a proposed new pro-developmental consensus fostering knowledge accumulation and industrialization in catching-up countries.
    Keywords: Development, Industrial Policies, Knowledge Accumulation, Catching-up, New International Consensus
    Date: 2008–09–26
  6. By: Massón-Guerra, José Luis
    Abstract: One of the structural problems in Latin-American has been the lower innovative capacity and lower generation of economically exploitable knowledge. This phenomenon has been produced by the absence of government’s incentives and strategies in order to be competitive inside the Knowledge Based Economy. More concretely, political, institutional and social factors have contributed negatively within this reality. As a consequence, the knowledge generation in this region is insufficient not only to satisfy its necessities but also to be competitive in the global context. At difference, the developing regions have recognized the significance impact of R&D investment and Education in their sustainable growth.This report uses the methodology proposed by the European Commission in the study about the “European Innovation Scoreboard 2007”. Specifically, this methodology is adapted at the Latin-American reality. In summary, the results will provide the current picture of the innovation and entrepreneurship in Latin-American Countries.
    Keywords: Innovation; Entrepreneurship; Economic Growth
    JEL: L26 O3 O4
    Date: 2008–07–07
  7. By: [Vymetal], [Dominik]
    Abstract: Four years of EU membership has brought new opportunities and challenges for local companies and public administration in member countries. New small and medium companies (SMB) emerged in the neighboring regions cross over the former frontiers, there are new clusters using inter-regional cooperation. Based on the extensive cooperation with “old” EU countries new best business practices are being introduced in the existing processes. The public administration has to follow not only the new legislation but also the new business needs. All mentioned changes create new impulses for Information and Communication Technology (ICT). Basic statistic data presented in this paper imply considerable reserves in document workflows on municipal administration level. SMB companies lag behind the EU average in electronic business level. One of the reasons could be relatively low support of Content Management Systems and logistic chains (SCM) by existing ICT. In order to meet the demands described some changes and tuning in the infrastructure, security and standardization is necessary. Necessary changes are regularly put into operation what leads to new opportunities for ICT students leaving the universities. The ratios of ICT students and graduates compared with the total numbers stagnated in the last years. Hence, changes in the ICT education and its permanent actualization are needed in all branches of ICT.
    Keywords: information technology; content management; public administration; small and medium sized companies; electronic commerce; e-Government; document management; ICT education
    JEL: D23 C88 H83 A29
    Date: 2008–05–14
    Abstract: This paper is an attempt to assess the existence and magnitude of local research spillovers in France. We rely on the model of an extended production function (Cobb-Douglas and Translog) with both local and neighborhood R&D capital stocks. We estimate this model on 312 employment areas as of 1999, first for the whole economy, then separately for five large manufacturing industries. We find estimates of R&D capital elasticities with respect to productivity which are significant and plausible both within own-area and across neighboring areas, as well as within own-industry but not across different industries.
    Keywords: Productivity, R&D, Local R&D Spillovers, Spatial Econometrics
    JEL: O30 O32 O47 C21
    Date: 2008
  9. By: zamparelli, luca
    Abstract: This paper develops a growth model combining elements of endogenous growth and induced innovation literatures. In a standard induced innovation model firms select at no cost innovations from an innovation possibilities frontier describing the trade-off between increasing capital or labor productivity. The model proposed allows firms to choose not only the direction but also the size of innovation by representing the innovation possibilities through a cost function of capital and labor augmenting innovations. By so doing, it provides a micro-foundation both of the intensity and of the direction of technical change. The policy analysis implies that an increase in subsidies to R&D as opposed to capital accumulation raises per capita steady state growth, employment rate and wage share.
    Keywords: Induced innovation; endogenous growth; direction of technical change
    JEL: O33 O31 O40
    Date: 2008–02
  10. By: Massón-Guerra, José Luis; Vendrell-Ferrero, Ferran
    Abstract: Whereas the knowledge spillover theory of entrepreneurship focuses on the diffusion of innovative output and knowledge filter among new firms and industries (Acts, et al., 2005; Audrescht, 2007), it has not been studied the phenomenon of entrepreneurship dissemination or entrepreneurship spillover among sectors. From an adaptation of the model of input-output matrix (Leontief, 1936; Dietzenbacher and Los, 2002) we develop a methodology that allows calculating the concept of entrepreneurship spillover. Besides, using intra-sectorial data from the 73 Spanish sectors, we empirically test the characteristics of the sectors with more entrepreneurship spillover. In short, the results clearly state that higher diversity and competition entails more entrepreneurship spillover. Moreover, the innovation only affects positively entrepreneurship spillover in restricted situations, briefly when the sectors have high competition and/or a high degree of technology.
    Keywords: Entrepreneurship; Innovation; Economic Growth; Multipliers; Leontief; Input Output Analysis;
    JEL: O30 L26 O4 C67
    Date: 2008–09–19
  11. By: Oliver Falck (Ifo Institute for Economic Research); Stephan Heblich (Max Planck Institute of Economics); Stefan Kipar (Ifo Institute for Economic Research)
    Abstract: If one cluster increases local competitiveness, can politicians, by interlinking clusters, achieve an even better effect at the state level? To answer this question, the paper analyzes the "Cluster Initiative" introduced in 1999 by the Bavarian State Government. The purpose of the initiative was to create a Bavarian-wide innovation network in support of state-wide knowledge flows. Using a difference- in-differences approach, we find that introducing the Bavarian-wide cluster policy increased the likelihood of innovation by a firm in the targeted industry by 4 to 7 percentage points. However, this effect is mainly driven by large firms' increased likelihood to innovate.
    Keywords: Difference-in Difference, Cluster Policy, Regional Policy
    JEL: R38 R11 O32
    Date: 2008–09–25
  12. By: Federica Rossi; Margherita Russo
    Abstract: We investigate to what extent and how the adoption of a complexity-based perspective to innovation (Lane and Maxfield, 1996, 1997, 2005; Lane et al., 2008; Read et al, 2008; Russo, 2000) can support policymakers in their quest to implement effective interventions, able to foster innovation processes and to create structures that sustain them over time. We argue that broad attempts at theorizing innovation processes do not lend themselves to a quick translation into simple ‘policy recipes’, because conceptualizing innovation as a complex multi-level process implies that it is not possible to devise context-independent ways to support it: improved theoretical understanding of innovation processes should not aim to provide policymakers with simple encompassing solutions, but it should help them formulate and address questions that are appropriate to the particular context within which they operate. In line with this approach, we present our analysis of a specific policy experiment, the ‘Technological Innovation in Tuscany’ programme (henceforth RPIA-ITT). In this context - drawing upon a dynamic interactionist theory of innovation whose main building blocks are the concepts of generative relationships, competence networks, scaffolding structures and the role of narrative in driving action in situations characterized by ontological uncertainty (Lane, Malerba, Maxfield and Orsenigo, 1996; Lane and Maxfield, 1997, 2005, 2008; Russo, 2000, 2005) – we have been able to identify methodological and analytical tools that can be applied to policy design, implementation, monitoring and evaluation activities. We conclude with some broader implications for innovation policy as well as an agenda for future research.
    Keywords: Innovation policy; innovation networks; regional policy; complex systems
    JEL: O25 O31 O32 R58
    Date: 2008–05
  13. By: Antti-Jussi Tahvanainen; Raine Hermans
    Abstract: ABSTRACT : This study scrutinizes the impact of value-creating practices in university-industry technology transfer that facilitate the diffusion of knowledge generated in academic research towards its successful application by companies on markets. To be more precise, the aim is to demarcate the role that US university technology transfer offices (TTOs), one of the consequential arrangements conjured into existence by the Bayh-Dole Act of 1980, play in matching the substance of academic research and the need-driven demand of commercial markets. In the process, they implicitly, yet strategically, guarantee the sustainability of the flow of technologies out of the laboratories towards market application, as their actions and motives uphold and sustain the incentive structures of both of the universes, the academic and the commercial. This is accomplished by performing and specializing in the very functions that neither universe has been able or willing to perform in order to take a step closer towards each other. These contributions are often hard to capture in quantitative measures, which has led to common criticism about the effectiveness of TTOs. We propose such measures to be used with care in the comparative evaluation of TTO performance, but also point at and recognize their value as parameters that can be utilized to internally monitor the performance of each TTO individually over time as a tool of management. Some alternative, Intellectual Capital based measures are suggested.
    Keywords: university technology transfer, technology transfer office, intellectual capital, knowledge management, Bayh-Dole Act, government intervention, value adding functions, value platform
    Date: 2008–09–22
  14. By: Kristof De Witte; Rui C. Marcques
    Abstract: Knowledge on the scale economies drives the incentives of regulators, governments and individual utilities to scale-up or scale-down the scale of operations. This paper considers the returns to scale (RTS) in non-convex frontier models. In particular, we evaluate RTS assumptions in a Free Disposal Hull model, which accounts for uncertainty and heterogeneity in the sample. Additionally, we provide a three-step framework to empirically analyze the existence and extent of RTS in real world applications. In a first step, the presence of scale (and scope) economies is verified. Secondly, RTS for individual observations are examined while in a third step we derive the optimal scale for a sector as a whole. The framework is applied to the Portuguese drinking water sector where we find the optimal scale to be situated around 7 to 10 million m3.
    Keywords: Free Disposal Hull, economies of scale, optimal size, water sector
    Date: 2008–08
  15. By: Sitnikov, Catalina Soriana
    Abstract: Learning and teaching have always been at the core of economic change and development. For long time there was a search for suggestions, ideas, plans and projects of how educational systems can be made more relevant to the needs of the societies they were established to serve. Implementing the Bologna principles and following the priorities of Lisbon strategy, Romanian education system and, particularly, the higher education system, reconsiders and rebuilds its vision and mission as well as its entire strategy. In this regard, the following basic elements are considered in the paper: •What is learned must be relevant to the needs of the people in economy. Educational providers need to be in touch with labour market requirements; •Effective learning must be judged on the basis of the outcomes that result, rather than on the inputs required; •Ways must be found to facilitate learning rather than to simply supply instruction; •The valueing of research and innovation within educational organizations must be increased; •Tailor made “entrepreneurial” education towards the necessities of the market, especially focused on small and medium size enterprises; •The lifelong learning –education permanence- should be continuously developed and be linked to the market requirements. The role and the main influences that higher education system will have over economic and human resources development are underlined. Also, appreciating that entrepreneurship becomes more and more one of the most important factors of development, the education and economic development are linked through the concept of “entrepreneurial university”.
    Keywords: higher education; economic development; entrepreneurial university
    JEL: I2 O15 M13
    Date: 2008–09–26

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