nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2012‒03‒08
twelve papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. Culture and diversity in knowledge creation By Berliant, Marcus; Fujita, Masahisa
  2. Do regions make a difference? Exploring the role of different regional innovation systems in global innovation networks in the ICT industry By Chaminade, Cristina; Plechero, Monica
  3. Considering adoption: Towards a consumption-oriented approach to innovation By Rekers, Josephine V.
  4. Regional Appropriation of University-Based Knowledge and Technology for Economic Development By Audretsch, David B.; Leyden, Dennis P.; Link, Albert N.
  5. Exploring the role of regional innovation systems and institutions in global innovation networks By Chaminade, Cristina
  6. Pairwise interactive knowledge and Nash equilibrium By Bach Christian W.; Tsakas Elias
  7. Institutional conditions and innovation systems: on the impact of regional policy on firms in different sectors By Moodysson, Jerker; Zukauskaite, Elena
  8. Openness and innovation performance: are small firms different? By Priit Vahter; James Love; Stephen Roper
  9. Motivations à l'éco-innovation : une comparaison sectorielle sur les entreprises au Luxembourg By GROFF Jocelyn; NGUYEN Thi Thuc Uyen
  10. Service innovation in manufacturing firms : evidence from Spain. By Santamarmía, Lluís; Nieto, María Jesús; Miles, Ian
  11. The Effect of Connectivity, Proximity and Market Structure on R&D Networks By Stuart McDonald; Mohamad Alghamdi; Bernard Pailthorpe
  12. What drives investment in telecommunications? The role of regulation, firms’ internationalization and market knowledge By Daniel Montolio; Elisa Trujillo

  1. By: Berliant, Marcus; 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.
    Keywords: knowledge creation; knowledge diversity; ideas and culture
    JEL: Z1 D83 O31
    Date: 2012–02–27
  2. By: Chaminade, Cristina (CIRCLE, Lund University); Plechero, Monica (CIRCLE, Lund University)
    Abstract: The access to global innovation networks (GINs) has been extremely unequal across regions around the globe. While certain regions are considered knowledge hubs, able to link to global knowledge flow, other still remain marginalized, pointing out to the role of regional innovation systems in the emergence and development of GINs. Using firm-level data collected through a survey and case studies in 2009-2010, this article systematically compares the patterns of global networks in the ICT industry in a selection of European and non-European regions. Contrary to what we expected, the results show that GINs may emerge in regions which are neither too innovative nor institutionally thick (like Tier 1) nor too thin (like Tier 3).
    Keywords: globalization; innovation networks; regions; Europe; India China
    JEL: O32
    Date: 2012–02–27
  3. By: Rekers, Josephine V. (CIRCLE, Lund University)
    Abstract: What are the forces that shape the adoption of innovations? This question has been sidelined in a largely production-centric literature on the economic geography of innovation. Inspired by Weber’s dual concern with procurement and distribution activities in the location of industry, this paper examines the new nature of distances products must overcome en route to the market, and the resources that are necessary to do this successfully. Building on findings in sociology, this paper suggest a consumption-centric perspective and future research on innovation in the knowledge-based economy, which foregrounds the significance of actors that are able to validate new products.
    Keywords: innovation adoption and diffusion; consumption; sociology of scientific knowledge; Alfred Weber; knowledge economy
    JEL: O30
    Date: 2012–02–27
  4. By: Audretsch, David B. (Indiana University); Leyden, Dennis P. (University of North Carolina at Greensboro, Department of Economics); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics)
    Abstract: Economic development practitioners and scholars recognize the link between universities and regional economic development. It is predicated on the spillover of knowledge from universities to commercialization. The literature has focused on the supply side, which involves university research and technology transfer mechanisms. We examine the role played by the demand for university-based knowledge and university-developed technology. We identify links between businesses and the university as a key conduit facilitating the spillover of knowledge using data on the Department of Energy’s Small Business Innovation Research (SBIR) program. We provide supply-side evidence on university research relationships and how the use of knowledge and technologies that flow from a university impact economic growth. We identify the role that SBIR-funded businesses play in the spillover of knowledge from the creating organization to where that knowledge is used and commercialized. Our results suggest that knowledge is systematically transmitted through university-related research.
    Keywords: Economic development; Entrepreneurship; Innovation; Licensing; SBIR program; University research
    JEL: L26 O31 O34
    Date: 2012–02–23
  5. By: Chaminade, Cristina (CIRCLE, Lund University)
    Abstract: Using firm-level data collected through a survey and case studies in 2009-2010, this article systematically compares the patterns of globalization of innovation in regions with different institutional thickness. The paper shows that these patterns differ substantially across regions and discusses relationship between regions, institutional frameworks and different forms of globalization of innovation.
    Keywords: regional innovation systems; institutional thickness; global innovation networks; Europe; China; India; Brazil; South Africa
    JEL: F23 F59 O33
    Date: 2012–02–27
  6. By: Bach Christian W.; Tsakas Elias (METEOR)
    Abstract: We provide epistemic conditions for Nash equilibrium, which are considerably weaker than thestandard ones by Aumann and Brandenburger (1995). Indeed, we simultaneously replace commonknowledge of conjectures and mutual knowledge of rationality with strictly weaker epistemicconditions of pairwise common knowledge of conjectures and pairwise mutual knowledge ofrationality respectively. It is also shown that, unlike the Aumann and Brandenburger''s conditions,ours do not imply common knowledge of rationality. Surprisingly, they actually do not even implymutual knowledge of rationality.
    Keywords: microeconomics ;
    Date: 2012
  7. By: Moodysson, Jerker (CIRCLE, Lund University); Zukauskaite, Elena (CIRCLE, Lund University)
    Abstract: This paper deals with institutional conditions in regional innovation systems; how institutions affect the organization of innovation activities among firms, and in what ways regional policy initiatives can be supportive. The analysis draws on data on innovation networks and activities in the life science, media, and food industries. The theoretical framework takes account of the ways in which regional policies are able to impact individuals’ and organizations’ action in relation to each other by being internalized. It is argued that such ability is decisive for the success or failure of the policy initiative. Three cases of regional policy targeting the promotion of innovation in different industries in Sweden are analyzed.
    Keywords: regional innovation systems; knowledge; institutions; innovation; policy
    JEL: O38 O52
    Date: 2012–02–27
  8. By: Priit Vahter (Birmingham Business School, University of Birmingham); James Love (Birmingham Business School, University of Birmingham); Stephen Roper (Small and Medium Sized Enterprise Centre, Warwick Business School, University of Warwick)
    Abstract: Traditionally, literature on open innovation has concentrated on analysis of larger firms. We explore whether and how the benefits of openness in innovation are different for small firms (less than 50 employees) compared to medium and large ones. Using panel data over a long time period (1994-2008) from Irish manufacturing plants, we find that small plants have on average significantly lower levels of openness, a pattern which has not changed significantly since the early 1990s. However, the effect of ‘breadth’ of openness (i.e. variety of innovation linkages) on innovation performance is stronger for small firms than for larger firms. For small firms (with 10-49 employees) external linkages account for around 40 per cent of innovative sales compared to around 25 per cent in larger firms. Small plants also reach the limits to benefitting from openness at lower levels of breadth of openness than larger firms. Our results suggest that small firms can gain significantly from adopting an open innovation strategy, but for such firms appropriate partner choice is a particularly important issue.
    Keywords: Open innovation; SMEs; boundary-spanning linkages; learning effects; Ireland
    Date: 2012–01
  9. By: GROFF Jocelyn; NGUYEN Thi Thuc Uyen
    Abstract: Cette analyse identifie les principaux facteurs qui incitent les entreprises à s'engager dans l'innovation environnementale. Elle contribue à la littérature empirique sur l'innovation environnementale à plusieurs niveaux. Premièrement, cet article présente pour la première fois, une analyse comparative intersectorielle des motivations à l'éco-innovation. Deuxièmement, au lieu de considérer l'éco-innovation comme une mesure agrégée d'innovation, cette étude s'attache à la différencier selon le type d'innovation en termes de produit, de procédé et de technologie. Troisièmement, cet article prend en compte la nature de l'éco-innovation au cours du processus d’innovation, en distinguant l'innovation environnementale à l'étape de la production et celle à l'étape des produits destinés aux consommateurs finaux. L'objectif est donc double. Il s'agit dans un premier temps, d'identifier les déterminants de la probabilité d'introduction de différents types d'éco-innovations dans une optique intersectorielle, quelle que soit la finalité de ces innovations. Puis, dans un second temps, d'étudier les déterminants des éco-innovations en fonction de leurs objectifs. Un modèle logistique a été réalisé à partir des données issues l'enquête communautaire sur l'innovation du Luxembourg. Cette analyse a permis de mettre en évidence l’importance de prendre en considération les spécificités inter et intra-sectorielles lorsqu’il s’agit de traiter la question des motivations à l’éco-innovation au niveau des entreprises. Les principales distinctions qui se révèlent, démontrent que les entreprises du secteur de l’industrie manufacturière sont plus sensibles aux pressions réglementaires que celles du secteur des services. D'autre part, les services semblent bénéficier rapidement d’outputs en terme d'éco-innovation, grâce à la mise en place d’un système de management environnemental, mais également grâce à des activités de R&D et cela, quel que soit le type ou la nature de l’innovation.
    Keywords: eco-innovation; Services; Industrie manufacturière; Réglementation; Système de management environnemental; Demande; R&D
    Date: 2012–02
  10. By: Santamarmía, Lluís; Nieto, María Jesús; Miles, Ian
    Abstract: The ways in which manufacturing firms come to offer services to customers – servitisation or servicisation – are attracting considerable attention. This paper examines an innovation survey of Spanish firms in order to investigate one aspect of this phenomenon: the introduction of new or improved services by manufacturers. Specifically, the paper analyses the determinants of service innovations in manufacturers and determines whether they differ from those of product or process innovations in these same firms. The study finds that almost 20 percent of the firms in the sample have introduced such services in the recent past and that important differences exist between service and product (goods) innovations, with service innovations being particularly related to human resource development and closer links to customers. This suggests that service innovation by manufacturers has much in common with the innovation patterns detected in service sector firms. Intriguing differences across manufacturing sectors are also noted, with the lowest- and highest-tech sectors reporting more service innovations than the medium-tech sectors
    Keywords: Innovation; Manufacturing; Service; Servitisation;
    Date: 2012–02
  11. By: Stuart McDonald (School of Economics, The University of Queensland); Mohamad Alghamdi; Bernard Pailthorpe
    Abstract: In a seminal paper, Goyal and Moraga-Gonzalez (2001) use an undirected network to characterize knowledge flows between firms engaging in research in an oligopolistic market. In their paper, firms are regarded as inhabiting a research joint venture (RJV), if they share the same edge of the network. These firms are allowed an R&D spillover of 1; the outside firms (firms not sharing an edge in the network) are permitted a constant knowledge spillover that is less than one. We begin our paper by showing that this last assumption has important consequences when dealing with R&D networks of size greater than or equal to six firms. We present examples of topologically non-equivalent networks that have the same degree of connectivity and generate identical outcomes in terms of R&D effort, firm profits and total welfare. We then modify their model so that R&D spillovers decrease as the number of shortest paths increases between any two firms. We show that under product differentiated Cournot and Bertrand competition, we have different outcomes for all economic variables. We also show that R&D effort increases with respect to the number of collaborative links if firms are in a weakly competitive market, whereas it declines if firms are in a more competitive market where products are closer substitutes. We also find that in more competitive markets there is a conflict between the stability and the efficiency of RJVs.
    Date: 2011
  12. By: Daniel Montolio (Universitat de Barcelona & IEB); Elisa Trujillo (Universitat de Barcelona & IEB)
    Abstract: The aim of this paper is to classify the firms operating in the European telecommunications market according to their degree of internationalization and market knowledge, and to test the effects of this classification and the existence of access regulation on infrastructure investment in European broadband markets. To do so, we construct a (unique) data set for the 27 European countries for the period 2002 to 2009. We estimate, by means of panel data techniques (and instrumental variables to control for any potential endogeneity problem), an investment equation for all firms and separate equations for entrant and incumbent firms. Our results show no significant relation between regulation and total investment. The variables capturing the degree of internationalization and market knowledge have a positive and significant effect on total investment, being a positive and significant effect on entrants’ investment, but no significant impact on that of incumbent firms. This result indicates that, under the current regulatory framework, the firms that invest most are entrants with international experience, while the expansion of incumbents into other countries does not affect their investments in their home countries.
    Keywords: Telecommunications, regulation, investment, internationalization, knowledge
    JEL: L96 L51 F21 F23 D83
    Date: 2011

This nep-knm issue is ©2012 by Laura Stefanescu. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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