nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2013‒10‒02
seventeen papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. Innovation and upgrading in global production networks By Dev Nathan; Sandip Sarkar
  2. Modeling the future of knowledge economy: evidence from SSA and MENA countries By Asongu Simplice
  3. The Knowledge Economy-finance nexus in SSA and MENA countries By Asongu Simplice
  4. The Innovation Potential of Universities - An Explorative Analysis By Jörg Bühnemann; Steffen Burchhardt
  5. The Knowledge Economy-finance nexus: how do IPRs matter in SSA and MENA countries? By Asongu Simplice
  6. Stage of development, governance and performance of inter-firm innovation cooperation: a conceptual model and propositions By Romaric Servajean-Hilst
  7. Subsidiary managers' knowledge mobilizations: Unpacking emergent knowledge flows By Esther Tippmann; Pamela Sharkey Scott; Vincent Mangematin
  8. Padrão de financiamento aos investimentos em inovação no Brasil By Márcia Rapini
  9. What makes companies pursue an open science strategy? By Markus Simeth; Julio Raffo
  10. A brief future of Time in the monopoly of scientific knowledge By Asongu Simplice
  11. Why Size Maters: Investigating the Drivers of Innovation and Economic Performance in New Zealand using the Business Operation Survey By Les Oxley; Shangqin Hong; Philip McCann
  12. Measuring national innovation systems efficiency – a review of DEA approach By Maxim Kotsemir
  13. Biases and Implicit Knowledge By Cunningham, Thomas
  14. Back to Basics: Basic Research Spillovers, Innovation Policy and Growth By Ufuk Akcigit; Douglas Hanley; Nicolas Serrano-Velarde
  15. Institutional Barriers to Innovation Development of the Russian Economy By Vladimir Komarov; Pavel Pavlov; V. Kotsubinskiy
  16. Social innovation and the role of public and private actors in welfare system Innovazione sociale e ruolo degli attori pubblici e privati nel welfare By Marco Accorinti
  17. Economic and social upgrading in global logistics. By Neil M. Coe; Martin Hess

  1. By: Dev Nathan; Sandip Sarkar
    Abstract: Abstract This paper deals with the role of innovation in upgrading within global production networks (GPNs). Because of the distribution of production segments across firms and countries, there is also a distribution of production knowledge. The paper looks at some ways of upgrading by developing economy firms – the roles of distributed knowledge, reverse innovation and new types of innovation, based on frugal engineering in emerging economies. Process changes could also be innovation, though, unlike product innovations, they are easily copied and spread. The paper points out the limits of current reverse innovation and also asks whether the separation of manufacturing from design has increased the speed of innovation. Before concluding, the paper looks at innovation in terms of the ‘adjacent possible’ in evolutionary analysis.
    Date: 2013
  2. By: Asongu Simplice (Yaoundé/Cameroun)
    Abstract: This paper projects the future of knowledge economy (KE) in SSA and MENA countries using the four components of the World Bank’s Knowledge Economy Index (KEI): economic incentive, education, ICTs and innovation. The empirical evidence provides the speeds of integration as well as the time necessary to achieve full integration. Findings broadly indicate SSA and MENA countries with low levels in KE will catch-up their counterparts with higher levels in a horizon of 4 to 7.5 years.
    Keywords: Knowledge economy; Principal Component Analysis; Panel data; Convergence
    JEL: F42 O10 O38 O57 P00
    Date: 2013–01–15
  3. By: Asongu Simplice (Yaoundé/Cameroun)
    Abstract: Purpose – This paper assesses dynamics of the knowledge economy (KE)-finance nexus using the four variables identified under the World Bank’s knowledge economy index (KEI) and seven financial intermediary dynamics of depth, efficiency, activity and size. Design/methodology/approach – Principal Component Analysis is used to reduce the dimensions of KE components before dynamic panel GMM estimation techniques are employed to examine the nexuses. Findings – Four main findings are established. (1) Education improves financial depth and financial efficiency but mitigates financial size. (2) But for a thin exception (trade’s incidence on money supply), economic incentives (credit facilities and trade) are not consistently favorable to financial development. (3) ICT improves only financial size and has a negative effect on other financial dynamics. (4) Proxies for innovation (journals and FDI) have a positive effect on financial activity; journals (FDI) have (has) a negative (positive) effect on liquid liabilities and; journals and FDI both have negative incidences on money supply and banking system efficiency respectively. Practical Implications – As a policy implication, the KE-finance nexus is a complex and multidimensional relationship. Hence, blind and blanket policy formulation to achieve positive linkages may not be successful unless policy-making strategy is contingent on the prevailing ‘KE specific component’ trends and dynamics of financial development. Policy makers should improve the economic incentive dimension of KE that overwhelmingly and consistently deters financial development, owing to surplus liquidity issues. Originality/value – As far as we have reviewed, this is the first paper to examine the KE-finance nexus with the plethora of KE dimensions defined by the World Bank’s KEI and all the dynamics identified by the Financial Development and Structure Database (FDSD).
    Keywords: Financial development; Knowledge Economy
    JEL: G21 O10 O34 P00 P48
    Date: 2013–01–02
  4. By: Jörg Bühnemann (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Steffen Burchhardt (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)
    Abstract: Knowledge-based innovations are a main driver for economic development of countries and a key factor in global competition. Most industrial countries aim to strengthen their innovative capacity breadthways. Beside large firms especially universities have the necessary potential (infrastructure and knowledge) to be regional drivers of innovations. They develop innovative ideas on their own and even more important support R&D-activities of the local economy. This paper offers a methodological framework for exploring the potential for commercialization within universities. The importance of inventions, publications and third-party funds as objective indicators is highlighted, and an additive value function is introduced to measure the potential for commercialization. Based on expert interviews at a technical university the required weights for all considered indicators are exemplarily identified. By applying different models to aggregate expert weights robust rankings of university units with respect to percapita and overall potential for commercialization were found. Based on these measures a central transfer unit could be able to allocate transfer-oriented resources properly. The specified scoring approach is a first step towards an EU-requested evaluation system.
    Keywords: knowledge transfer, potential for commercialization, patent, invention, university
    JEL: I23 O31 D81
    Date: 2013–09
  5. By: Asongu Simplice (Yaoundé/Cameroun)
    Abstract: This paper assesses the relevance of intellectual property rights (IPRs) in the knowledge economy (KE)-finance nexus using the four variables identified under the World Bank’s knowledge economy index (KEI) and seven financial intermediary dynamics of depth, efficiency, activity and size. Three main findings are established: (1) education increases financial dynamics of depth and size; (2) economic incentives by means of credit facilities (trade openness) mitigate financial dynamics of efficiency and activity (financial dynamics of depth and size) and; (3) ICT and FDI both improve financial depth and decrease financial size (with FDI having an additional edge of improving financial activity). As a policy implication, the enforcement of IPRs is not a general and sufficient condition for positive KE-finance nexuses. Hence, blanket upholding of IPRs to achieve such positive linkages may not be successful unless policy is contingent on the prevailing ‘KE specific component’ trends and dynamics of financial development.
    Keywords: Financial development; Knowledge economy; Intellectual property rights
    JEL: K42 O10 O34 O38 P48
    Date: 2013–01–01
  6. By: Romaric Servajean-Hilst (CRG - Centre de recherche en gestion - Polytechnique - X - CNRS : UMR7176)
    Abstract: This paper presents a framework for the dyadic study of inter-firm innovation cooperation, beyond the boundaries of collaborative innovation projects. In order to understand how two firms can maximize the performance of their relationship, we performed a literature review combined with interviews with practitioners. The result of this study is a model associated with propositions on the interactions between its different elements, which are (i) the governance of the relationship, (ii) its performance, (iii) its level of development and (iv) the degree of innovation of the collaborative projects. This paper concludes by suggesting future researches and stating implications for managers.
    Keywords: inter-firm innovation cooperation; governance; cooperation relationship development and performance
    Date: 2013–03–22
  7. By: Esther Tippmann (University College Dublin - University College Dublin); Pamela Sharkey Scott (Dublin Institute of Technology - Dublin Institute of Technology); Vincent Mangematin (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM))
    Abstract: Knowledge flows are a key source of advantage for multinational corporations (MNCs). As research on subsidiary knowledge flows to date has mostly focused on organization-level investigations, often using quantitative methodologies, the nuances of knowledge flows practices and their micro-foundations require further theoretical development. Using detailed qualitative data on 40 cases of subsidiary managers' knowledge mobilizations, this paper unravels some of the micro-level practices of knowledge mobilizations in MNCs. We find that subsidiary manager's knowledge mobilization practices initiate a complex pattern of subsidiary knowledge inflows, pinpointing the significance of lateral and bottom up exchanges (locally as well as internationally) and the emergent nature of utilizing practices, specialist skills and expertise, as well as experience and advice to develop solutions. We use these insights to distinguish between two types of subsidiary knowledge flows: deliberate and emergent knowledge flows and highlight how their differences have profound implications for the investigation of subsidiary and MNC knowledge flows and their micro-foundations.
    Keywords: knowledge flow.; knowledge transfers; MNC/MNE; knowledge seeking behavior. middle managers; subsidiary
    Date: 2012
  8. By: Márcia Rapini (Cedeplar-UFMG)
    Abstract: This paper analyzes the pattern of financing R & D and innovation in Brazilian firms. For this data from Brazilian Innovation Survey (PINTEC) are used in the years 1998-2000, 2001-2003, 2003-2005. The PINTEC data show that, for all firms, financing R & D and innovation is mostly done with their own resources. Moreover, the government support for businesses is not significant being concentrated in financing machinery and equipment acquisition. The micro data estimations suggest that for 2003 and 2005 Surveys, is less likely to innovate in the presence of financial barriers. Multivariate analysis points to a distinct pattern of response of innovative and non-innovative firms, suggesting the need for a specific set of funding instruments.
    Keywords: Funding, innovation, PINTEC, Brazil
    JEL: O31
    Date: 2013–09
  9. By: Markus Simeth (Ecole Polytechnique Fédérale de Lausanne (EPFL), College of Management, Switzerland); Julio Raffo (World Intellectual Property Organization, Economics and Statistics Division, Geneva, Switzerland)
    Abstract: Whereas recent scholarly research has provided many insights about universities engaging in commercial activities, there is still little empirical evidence regarding the opposite phenomenon of companies disseminating scientific knowledge. Our paper aims to fill this gap and explores the motivations of firms that disclose research outcomes in a scientific format. Besides considering an internal firm dimension, we focus particularly on knowledge sourcing from academic institutions and the appropriability regime using a cost-benefit framework. We conduct an econometric analysis with firm-level data from the fourth edition of the French Community Innovation Survey (CIS4) and matched scientific publications for a sample of 2,512 R&D performing firms from all manufacturing sectors. The analysis provides evidence that the access to important scientific knowledge imposes the adoption of academic disclosure principles, whereas the mere existence of collaborative links with academic institutions is not a strong predictor. Furthermore, the results suggest that overall industry conditions are influential in shaping the cost-benefit rationale of firms with respect to scientific disclosure.
    Keywords: R&D, Industrial Science, Knowledge Disclosure, University-Industry collaboration
    Date: 2013–04
  10. By: Asongu Simplice (Yaoundé/Cameroun)
    Abstract: This seminal paper provides global empirical evidence on catch-up processes in scientific and technical publications. Its purpose is to model the future of scientific knowledge monopoly in order to understand whether the impressive growth experienced by latecomers in the industry has been accompanied by a similar catch-up in scientific capabilities and knowledge contribution. The empirical evidence is based on 41 catch-up panels which together consist of 99 countries. The richness of the dataset allows us to disaggregate countries into fundamental characteristics based on income-levels (high-income, lower-middle-income, upper-middle-income and low-income), legal-origins (English common-law, French civil-law, German civil-law and, Scandinavian civil-law) and, regional proximity (South Asia, Europe & Central Asia, East Asia & the Pacific, Middle East & North Africa, Latin America & the Caribbean and, Sub-Saharan Africa). Three main issues are investigated: the presence or not of catch-up processes, the speed of the catch-up processes and, the time needed for full (100%) catch-up. The findings based on absolute and conditional catch-up patterns broadly show that advanced countries will continue to dominate in scientific knowledge contribution. Policy implications are discussed.
    Keywords: Research and Development; Catch-up
    JEL: F42 O10 O30 O38 O57
    Date: 2013–05–01
  11. By: Les Oxley (University of Waikato); Shangqin Hong (University of Canterbury); Philip McCann (University of Groningen)
    Abstract: The economic performance of the New Zealand economy is something of an enigma. Although ranked number one (of 144 countries) for four important 'growth fundamentals' New Zealand is 'middle of the pack' when it comes to economic growth, productivity and innovation. So what is missing in this story of New Zealand performance? Using three iterations (2005, 2007 and 2009) of the Business Operations Survey, the paper seeks to answer the question using a bivariate probit regression (biprobit) approach applied to samples in excess of 2,000 unit record observations of New Zealand firms. The results suggest that factors such as firm size, high perceived quality product, investment/R&D capability, major technology change, application of formal IP protection and new export markets are systematically and positively related to innovation; while many external issues such as those related to geography, market structure, business environment, appear to have little influence. At the firm level, innovations in New Zealand are highly dependent on the firms’ internal ability to develop new technologies and market demand. (Small) size does matter in New Zealand where ultimately government may need to be involved to maintain a viable (minimum) scale for domestic R&D.
    Keywords: innovation; New Zealand Business Operations Survey (BOS); new economic geography (NEG).
    Date: 2013–09–23
  12. By: Maxim Kotsemir (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics)
    Abstract: The paper reviews the application of the data envelopment analysis (DEA) method for measuring the efficiency of national innovation systems (NIS). The paper firstly visualizes the logic of DEA method and briefly summarizes the key advantages and main limitations of the DEA method. Further, this paper provides a comprehensive review of 11 empirical studies on cross-country analysis of NIS efficiency with DEA technique. In its main part the paper analyses the specifications of DEA models used in the reviewed studies, the content of the country samples, sets of input and output variables used and the resulting lists of efficient countries. The review detects general trends and differences in the sets of variables and the content of country samples. Moreover, this paper highlights the problem of “small countries bias” in the reviewed studies: situation when “small” (in terms of national innovation system scope and the level of development) countries (like Venezuela, Kyrgyzstan etc.) are included in the country sample, these “small” countries become the efficient ones. In general, empirical studies on cross-country analysis of national innovation systems efficiency using DEA method pay little attention to profound analysis of previous relevant studies. Therefore, this paper is among the first papers with deep review of such empirical studies
    Keywords: data envelopment analysis, DEA, national innovation systems, national innovation system efficiency, economic review, efficiency analysis, review of empirical studies
    JEL: C44 C61 P49 P51 P52 Q55
    Date: 2013
  13. By: Cunningham, Thomas
    Abstract: A common explanation for biases in judgment and choice has been to postulate two separate processes in the brain: a “System 1” that generates judgments automatically, but using only a subset of the information available, and a “System 2” that uses the entire information set, but is only occasionally activated. This theory faces two important problems: that inconsistent judgments often persist even with high incentives, and that inconsistencies often disappear in within-subject studies. In this paper I argue that these behaviors are due to the existence of “implicit knowledge”, in the sense that our automatic judgments (System 1) incorporate information which is not directly available to our reflective system (System 2). System 2 therefore faces a signal extraction problem, and information will not always be efficiently aggregated. The model predicts that biases will exist whenever there is an interaction between the information private to System 1 and that private to System 2. Additionally it can explain other puzzling features of judgment: that judgments become consistent when they are made jointly, that biases diminish with experience, and that people are bad at predicting their own future judgments. Because System 1 and System 2 have perfectly aligned preferences, welfare is well-defined in this model, and it allows for a precise treatment of eliciting preferences in the presence of framing effects.
    Keywords: biases, implicit knowledge, dual systems
    JEL: D11 D81
    Date: 2013–09–29
  14. By: Ufuk Akcigit (Department of Economics, University of Pennsylvania and NBER); Douglas Hanley (Department of Economics, University of Pennsylvania); Nicolas Serrano-Velarde (Bocconi University and IGIER)
    Abstract: This paper introduces a model of endogenous growth through basic and applied research. Basic research differs from applied research in the nature and the magnitude of the generated spillovers. We propose a novel way of empirically identifying these spillovers and embed them in a general equilibrium framework with private firms and a public research sector. After characterizing the equilibrium, we estimate our model using micro-level data on research expenditures by French firms. Our key finding is that standard R&D policies can accentuate the dynamic misallocation in the economy. We also find a strong complementarity between the property rights of basic research and the optimal funding of public research.
    Keywords: Innovation, basic research, applied research, research and development, government spending, endogenous growth, spillover
    JEL: O31 O38 O40 L78
    Date: 2013–09–18
  15. By: Vladimir Komarov (Russian Presidential Academy of National Economy and Public Administration); Pavel Pavlov (Russian Presidential Academy of National Economy and Public Administration); V. Kotsubinskiy (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The paper presents a comprehensive analysis of the institutional barriers innovative development of Russia's economy. We consider the role of institutions in innovative development from the standpoint of modern theories of innovation, analyzed the impact of informal institutions on innovation dynamics explored the possibility of implementing institutional changes as a mechanism removal of institutional barriers. Finally, conclusions are offered for Russian innovation policy in the medium term.
    Keywords: institutional barriers to innovative development of Russian economy
    Date: 2013–04
  16. By: Marco Accorinti
    Abstract: Based on local cases, paper explores the prospects of the management of social services in the current socio-economic context. It seems at least inappropriate to use pre-established models of intervention in social assistance, but it is more appropriate to pay attention to measures to be implemented innovations at the local level. With collaboration between public entity and private bodies, the State has not only the task of programming, but it is also committed to managing social interventions and controlling processes. A new protagonist of citizens, according to the Article 118 of the Italian Constitution, is becoming. Attraverso un’analisi di casi locali, il paper approfondisce le prospettive della gestione dei servizi sociali nell’attuale contesto socio-economico, e il concetto base dei servizi alla persona ovvero l’interazione sociale tra attori (pubblici e privati) operanti nei territori. Sembra infatti quanto meno inopportuno pensare di poter ricorrere a modelli precostituiti di intervento, ma è maggiormente adeguato porre attenzione alle azioni da realizzare a livello locale secondo innovazioni frutto della collaborazione tra Ente pubblico e organismi privati, in cui lo Stato non abbia solo il compito della programmazione, bensì della gestione degli interventi sociali e del controllo dei processi con un protagonismo nuovo dei cittadini, secondo lo spirito dell’articolo 118 secondo comma della Costituzione.
    Keywords: Local welfare system; participation; No Profit sector; citizenship Welfare locale; partecipazione; Terzo settore; cittadini
  17. By: Neil M. Coe; Martin Hess
    Abstract: Abstract Contemporary economic globalization as a highly dynamic process has seen substantial changes in its organization, governance, geographies and impacts. These global shifts can be characterized by – among other aspects – increased functional and geographical fragmentation of production processes, various waves of outsourcing and off-shoring, changing geographies of production and consumption and associated labour market dynamics. At the same time, nation states and regional economic blocs aim at increasing macro-regional and global integration through bilateral and multilateral trade and investment negotiations, predicated on transformations in transportation and logistics technologies that enable the functioning of complex global production networks (GPNs) and link regional, national and supra-national economies. This paper aims to assess the consequences of what has been termed a ‘logistics revolution’ for economic and social upgrading in global logistics and client sectors. It starts by charting the existing research base and exploring the structure and dynamics of the global logistics industry, before addressing the potential of and obstacles to economic and social upgrading. The analysis highlights the often-neglected importance of logistics as a global industry: a major employer and value generator in its own right, with its own evolving GPNs. It demonstrates the increasingly diverse structure of logistics operations and labour markets, creating opportunities for upgrading through innovation and new technologies, but at the same time it shows the continued prevalence of ‘low-road’ logistics labour markets and workers often struggling to secure labour rights, decent wages and improved working conditions. These issues are illustrated and discussed for both the global logistics industry itself and the logistics activities in client sectors such as horticulture, apparel and mobile communications. The paper concludes with reflections on the contingent and variegated outcomes of logistics development and avenues for future research.
    Date: 2013

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