nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2011‒06‒04
three papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. Technological Innovations and the Allocation of Decision-Making Authorities in Swiss Firms By Kathrin Armbruster
  2. International Business Travel: An Engine of Innovation? By Nune Hovhannisyan; Wolfgang Keller
  3. Information gathering, innovation and growth By Parello, Carmelo Pierpaolo

  1. By: Kathrin Armbruster (University of Basel)
    Date: 2011
  2. By: Nune Hovhannisyan; Wolfgang Keller
    Abstract: While it is well known that managers prefer in-person meetings for negotiating deals and selling their products, face-to-face communication may be particularly important for the transfer of technology because technology is best explained and demonstrated in person. This paper studies the role of short-term cross-border labor movements for innovation by estimating the recent impact of U.S. business travel to foreign countries on their patenting rates. Business travel is shown to have a significant effect up and beyond technology transfer through the channels of international trade and foreign direct investment. On average, a 10% increase in business travel leads to an increase in patenting by about 0.3%. We show that the technological knowledge of each business traveler matters by estimating a higher impact for travelers that originate in U.S. states with substantial innovation, such as California. Moreover, the business traveler effect on innovation also varies across industries. This study provides initial evidence that international air travel may be an important channel through which cross-country income differences can be reduced. We also discuss a number of policy issues in the context of short-term cross-border labor movements.
    JEL: F20 J61 O33
    Date: 2011–05
  3. By: Parello, Carmelo Pierpaolo
    Abstract: In this paper we study the economic implications of IPR protection on corporate intelligence, R&D investment and economic growth. To accomplish this objective, we introduce trade secret and information leakage into a standard quality-ladder growth model and study the long-run implications of improving the privacy of firms' data. We find that reducing the set of practices of information gathering is more effective in protecting firms' privacy than strengthening trade secrets.
    Keywords: Quality-improvement; R&D; information leakages; corporate intelligence; growth.
    JEL: L51 D91 O32 K42 O33
    Date: 2011–03–02

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