nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2008‒12‒21
three papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. Science, Technology and Innovation for Economic Growth: Linking Policy Research and Practice in "STIG Systems" By David, Paul; Aghion, Philippe
  2. Inventing Together: Exploring the Nature of International Knowledge Spillovers in Latin America By Fabio Montobbio; Valerio Sterzi
  3. A Resolution of the Purchasing Power Parity Puzzle: Imperfect Knowledge and Long Swings By Roman Frydman; Michael D. Goldberg; Søren Johansen; Katarina Juselius

  1. By: David, Paul; Aghion, Philippe
    Abstract: This paper reflects on the relevance of "systems-theoretic" approaches to theinterdependent policy issues relating to the dynamics of science, technology and innovation and their relationship to economic growth. Considering the approach that characterizes much of the current economics literature's treatment of technology and growth policies, we pose the critical question: what kind of systems paradigm is likely to prove particularly fruitful in that particular problem-domain? Evolutionary, neo-Schumpeterian, and complex system dynamics approaches are conceptually attractive, and we examine their respective virtues and limitations. Both qualities are redily visible when one tries to connect systems-relevant research with practical policy-making in this field.
    Keywords: science and technology policy; innovation policy; R&D subsidies; IPR; systems research; economic growth theory; complementarities; positive feedbacks; complexity; market failurees; policy implementation failures
    JEL: O1 D50
    Date: 2008–10
  2. By: Fabio Montobbio (Università dell'Insubria, Varese and CESPRI, Bocconi Univerity - Milan - Italy); Valerio Sterzi (University of Bergamo and CESPRI, Bocconi University, Milan - Italy)
    Abstract: This paper studies the nature, sources and determinants of international patenting activity in Latin American countries (LACs) and examines the extent to which LACs benefit from R&D that is performed in the G-5 countries (France, Germany, Japan, United Kingdom, and United States). By using patents and patent citations at the United States Patent and Trademark Office we trace intrasectoral knowledge flows from G-5 countries to LACs. We study the impact of three channels of spillovers: pure spillovers, patent citations related spillovers, and face-to-face contact spillovers. Our results, based on data for Argentina, Brazil, Chile, Colombia, and Mexico, suggest that international knowledge spillovers from the G-5 countries are a significant determinant of inventive activity over the period 1988-2003. In particular we find that the stock of ideas produced in the US has a strong impact on the international patenting activity of these countries. Moreover controlling for US-driven pure spillover effects, bilateral patent citations and face-to-face relationships between inventors are both important additional mechanisms of knowledge transmission. Some of our results suggest that the latter mechanism is more important than the former.
    Keywords: Innovation, R&D Spillover, Knowledge flows, Latin America, Patents, Citations, Inventors
    JEL: O30 O10 O11
    Date: 2008–11
  3. By: Roman Frydman (New York University); Michael D. Goldberg (University of New Hampshire); Søren Johansen (Department of Economics, University of Copenhagen); Katarina Juselius (Department of Economics, University of Copenhagen)
    Abstract: Asset prices undergo long swings that revolve around benchmark levels. In currency markets, fluctuations involve real exchange rates that are highly persistent and that move in near-parallel fashion with nominal rates. The inability to explain these two regularities with one model has been called the "Purchasing Power Parity puzzle". In this paper, we trace the puzzle to exchange rate modelers' use of the "Rational Expectations Hypothesis". We show that once imperfect knowledge is recognized, a monetary model is able to account for the puzzle, as well as other salient features of the data, including the long-swings behavior of exchange rates.
    Keywords: PPP puzzle; long swings; imperfect knowledge; rational expectations hypothesis
    JEL: F31 F41 G15
    Date: 2008–12

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