nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2009‒11‒27
six papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. Knowledge Spillovers from Creation to Exploitation: A Theoretical Model with Implications for Firms and Public Policy By Zoltan J. Acs; Claire Economidou; Mark Sanders
  2. Services outsourcing and innovation: An empirical investigation By Görg, Holger; Hanley, Aoife
  3. Waiting to imitate: on the dynamic pricing of knowledge By Henry, Emeric; Ponce, Carlos
  4. Competing process and quality innovation in a model of occupational choice By Colin Davis; Yasunobu Tomoda
  5. Cultural Identity and Knowledge Creation in Cosmopolitan Cities By Ottaviano, Gianmarco Ireo Paolo; Prarolo, Giovanni
  6. Knowledge Spillovers and TFP Growth Rates By Nuria Quella

  1. By: Zoltan J. Acs; Claire Economidou; Mark Sanders
    Abstract: In this paper we present an endogenous growth model in which we investigate the implications of knowledge spillovers between knowledge creators (inventors) and commercializers (innovators). We then turn to the question how such knowledge spillovers affect value creation within and among organizations as well as at the aggregate level and discuss how the internalization of these knowledge spillovers can help improve economic performance at both levels.
    Keywords: knowledge spillovers; innovation management; strategic entrepreneurship
    JEL: L26 O31 O32 O38
    Date: 2009–11
  2. By: Görg, Holger; Hanley, Aoife
    Abstract: We provide a comprehensive empirical analysis of the links between international services outsourcing, domestic outsourcing, profits and innovation using plant level data. We find a positive effect of international outsourcing of services on innovative activity at the plant level. Such a positive effect can also be observed for domestic outsourcing of services, but the magnitude is smaller. This makes intuitive sense, as international outsourcing allows more scope for exploiting international factor price differentials, therefore giving the establishment higher profits and more scope to restructure production activities towards innovation. We also find that international services outsourcing has a positive effect on profitability, as predicted by theory, while this is not true for domestic sourcing. The results are robust to various specifications and an instrumental variables analysis.
    Keywords: innovation; offshoring; R&D; services outsourcing
    JEL: F19 O31
    Date: 2009–08
  3. By: Henry, Emeric; Ponce, Carlos
    Abstract: We study the problem of an inventor who brings to the market an innovation that can be legally copied. Imitators may 'enter' the market by copying the innovation at a cost or by buying from the inventor the knowledge necessary to reproduce and use the invention. The possibility of contracting affects the need for patent protection. Our results reveal that: (i) Imitators wait to enter the market and the inventor becomes a temporary monopolist; (ii) The inventor offers contracts which allow resale of the knowledge acquired by the imitators; (iii) As the pool of potential imitators grows large, the inventor may become a permanent monopolist.
    Keywords: contracting; knowledge trading; Patents; war of attrition
    JEL: C73 D23 L24 O31 O34
    Date: 2009–10
  4. By: Colin Davis (Kobe University, Graduate School of Economics); Yasunobu Tomoda (Kyoto University, Institute of Economic Research)
    Abstract: We develop a simple model of endogenous growth and occupational choice in which skill differentiated workers choose between three types of employment activity: production, process innovation,and quality innovation. Incumbent firms invest in process innovation to reduce production costs and market entrants invest in quality improvements in order to capture the market from vintage product lines. We use this framework to examine innovation incentives for incumbent firms in an environment of creative destruction and find that there are two plausible and stable patterns of product evolution: a corner equilibrium with quality growth alone, and an interior equilibrium with both productivity growth and quality growth. We also show that the process innovation of an interior equilibrium has important policy implications for economic growth.
    Keywords: Process innovation;Quality innovation; Endogenous growth; Occupational choice
    Date: 2009–11
  5. By: Ottaviano, Gianmarco Ireo Paolo; Prarolo, Giovanni
    Abstract: We study how the city system is affected by the possibility for the members of the same cultural diaspora to interact across different cities. In so doing, we propose a simple two-city model with two mobile cultural groups. A localized externality fosters the productivity of individuals when groups interact in a city. At the same time, such interaction dilutes cultural identities and reduces the consumption of culture-specific goods and services. We show that the two groups segregate in different cities when diaspora members find it hard to communicate at distance whereas they integrate in multicultural cities when communication is easy. The model generates situations in which segregation is an equilibrium but is Pareto dominated by integration.
    Keywords: cosmopolitan cities; cultural diaspora; cultural identity; knowledge creation
    JEL: F0 O4 R1
    Date: 2009–08
  6. By: Nuria Quella (Dept. of Economics, Stony Brook University)
    Abstract: In this paper I calibrate unobserved labor-generated knowledge spillovers within and between six large macroeconomic sectors covering the U.S. civilian economy from 1948 to 1991. Using quality-adjusted data I show that manufacturing and trade & transportation are the main source of knowledge flows to the overall economy for the entire period. However, the productivity slowdown of the early seventies coincides with trade & transportation taking over manufacturing as the main source and destination of post-73 knowledge flows. Furthermore, I compute the gap between the market and the optimal allocation of labor across sectors, and the wedge between market and optimal wages by sector. I find that, for the whole period, optimal employment in manufacturing and trade & transportation is, respectively, 20% and 27% above market. As a result optimal output in these sectors is 12% and 16% higher than the market’s, and optimal wages in manufacturing are 54% above market wages.
    Keywords: Knowledge spillovers; productivity; human capital; learning; wages.
    JEL: D24 J24 O30 O40
    Date: 2009–10

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