nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2011‒04‒30
seven papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. The territorial shaping of knowledge dynamics in Baden-Württemberg - Inter-organizational relations in the sectoral knowledge domain of the automotive industry By Simone Strambach; Iris Dieterich
  2. Compensation Structure and the Creation of Exploratory Knowledge in Technology Firms By Cui, Victor; Ding, Waverly W.; Yanadori, Yoshio
  3. Knowledge-based Economic Development as a Unifying Vision in a Post-awakening Arab World By Schwalje, Wes
  4. Culture and Diversity in Knowledge Creation By Marcus BERLIANT; FUJITA Masahisa
  5. The effect of microaggregation on regression results: an application to Spanish innovation data By López, Alberto
  6. The innovative performance of China's national innovation system By Boeing, Philipp; Sandner, Philipp
  7. Labor Mobility, Social Network Effects, and Innovative Activity By Kaiser, Ulrich; Kongsted, Hans Christian; Rønde, Thomas

  1. By: Simone Strambach (Department of Geography, Philipps University Marburg); Iris Dieterich (Department of Geography, Philipps University Marburg)
    Abstract: The paper focuses on the territorial shaping of knowledge dynamics as one of the driving forces for innovation. Knowledge dynamics are unfolding from processes of creation, use, transformation and diffusion of knowledge. Due to both the ongoing restructuring of global value chains and the changes in the organization of innovation ‘combinatorial knowledge dynamics’ gain a more prominent role in innovation. Firms are facing an increasing need to combine heterogeneous knowledge sources spread over organizational, technological, sectoral and spatial boundaries in innovation processes. Combinatorial knowledge dynamics imply to cope with many different cognitive, technological, intra- and inter-organizational and institutional interfaces. Deeper empirical investigation in the connected organizational and institutional change linked with knowledge dynamics is still missing, but is indeed necessary to better understand the spatio-temporality of knowledge dynamics behind innovation. Addressing the connection of space as a scope of action and space as being generated as a part of the social process, the paper chose a biographical method to explore knowledge dynamics.
    Keywords: Innovation, territorial knowledge dynamics, automotive industry, Baden-Württemberg
    JEL: D83 L62 O32
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:pum:wpaper:2011-01&r=knm
  2. By: Cui, Victor; Ding, Waverly W.; Yanadori, Yoshio
    Abstract: Given the importance of exploration in a firm’s overall innovation program, scholarshave sought to understand organizational factors that give rise to exploration-oriented innovations. We propose theory and empirical evidence that relates firms’ use of financial incentives to their exploratory innovation performance. We expect that a larger proportion of long-term incentives in R&D employee compensation should be positively associated with the creation of exploratory innovation in a firm. In addition, we propose that a higher level of horizontal pay dispersion is negatively associated with the creation of exploratory innovation. We examine innovations reflected in the patents of a unique six-year, unbalanced panel dataset of 94 high-technology firms in the U.S. Empirical results confirm that firms with high level of horizontal pay dispersion have less exploratory patent innovations. However, surprisingly, firms that pay their R&D employees a higher proportion of long-term financial incentives in total compensation have lower level of exploratory innovation. This implies the possibility that popular longterm incentive plans in high-technology sectors (e.g., stock option plans) have failed to achieve their intended goals in practice. We discuss factors that might moderate the negative impact of long-term incentives on exploratory innovation.
    Keywords: Organizational Behavior and Theory
    Date: 2011–02–01
    URL: http://d.repec.org/n?u=RePEc:cdl:indrel:1911035&r=knm
  3. By: Schwalje, Wes
    Abstract: This article traces the evolution of knowledge-based economic development in the Arab World. In pursuing this objective, many countries in the region have made large state-driven human capital investments with the goals of job creation, economic integration, economic diversification, environmental sustainability, and social development. An assessment of the effectiveness of Arab investments in human capital shows marginal progress towards knowledge-based development over the last decade. A disconnect between the skills developed in Arab skills formation systems and those required by private sector employers relegates Arab businesses to contesting lower-skilled, non-knowledge intensive industries which has stalled knowledge-based development in the region.
    Keywords: Arab World; Middle East; skills formation; knowledge economy; competitiveness; skills development policy; economic development
    JEL: J40 J41 J24
    Date: 2011–04–14
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:30305&r=knm
  4. By: Marcus BERLIANT; FUJITA Masahisa
    Abstract: Is the paradise of effortless communication the ideal environment for knowledge creation? Or, can the development of local culture in regions raise knowledge productivity compared to a single region with a unitary culture? In other words, can a real technological increase in the cost of collaboration and the cost of public knowledge flow between regions, resulting in cultural differentiation between regions, increase welfare? In our framework, a culture is a set of ideas held exclusively by residents of a location. In general in our model, the equilibrium path generates separate cultures in different regions. When we compare this to the situation where all workers are resident in one region, R&D workers become too homogeneous and there is only one culture. As a result, equilibrium productivity in the creation of new knowledge is lower relative to the situation when there are multiple cultures and workers are more diverse.
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:eti:dpaper:11046&r=knm
  5. By: López, Alberto
    Abstract: Microaggregation is a technique for masking confidential data by aggregation. The aim of this paper is to analyze the extent to which microaggregated data can be used for rigorous empirical research. In doing this, I adopt an empirical perspective. I use data from the Technological Innovation Panel (PITEC) and compare regression results using both original and anonymized data. PITEC is a new firm-level panel data base for innovative activities of Spanish firms based on CIS data. I find that the microaggregation procedure used has a slight effect on the coefficient estimates and their estimated standard errors, especially when estimating linear models.
    Keywords: Microaggregation; Individual ranking; Bias; Innovation data
    JEL: O30 C80
    Date: 2011–01
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:30403&r=knm
  6. By: Boeing, Philipp; Sandner, Philipp
    Abstract: The objective of this paper is to investigate the innovative performance of China's NIS in international comparison and the capacity of China's NIS in creating indigenous innovation. We provide insights drawing upon patent data and using patent families to determine the value of the underlying invention. For the timeframe we studied, China's comparative advantage exists in the creation of low value innovative performance, albeit increasingly in huge quantities. Constantly rising volumes of patent applications mirror both, the improved protection of intellectual property rights and increasing capacity for inventiveness. Supplemented by the continuous growth of the Chinese economy, improving conditions are reflected and reinforced by more R&D-intense FDI. Foreign firms' innovative performance associated with higher economic value is particularly strong. --
    Keywords: National Innovation System,Innovative Performance,China,Patents,Innovation Policy
    JEL: O53 O47 O34 P27
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:zbw:fsfmwp:158&r=knm
  7. By: Kaiser, Ulrich (University of Zurich); Kongsted, Hans Christian (University of Copenhagen); Rønde, Thomas (Copenhagen Business School)
    Abstract: We study the mapping between labor mobility and industrial innovative activity for the population of R&D active Danish firms observed between 1999 and 2004. Our study documents a positive relationship between the number of workers who join a firm and the firm's innovative activity. This relationship is stronger if workers join from innovative firms. We also find evidence for positive feedback from workers who leave for an innovative firm, presumably because the worker who left stays in contact with their former colleagues. This implies that the positive feedback ("social network effects") that has been found by other studies not only exists but even outweighs the disruption and loss of knowledge occurring to the previous employer from the worker leaving. Summing up the effects of joining and leaving workers, we find ample evidence for mobility to be associated with an increase in total innovative activity of the new and the old employer.
    Keywords: labor mobility, innovation, social network
    JEL: O33 O34 C23
    Date: 2011–04
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp5654&r=knm

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