nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2014‒03‒15
eighteen papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. Knowledge Licensing in a Model of R&D-driven Endogenous Growth By Vahagn Jerbashian
  2. L'innovation par l'hybridation : une hydre scientifique By Gilbert Giacomoni; Rémi Jardat
  3. Towards an alternative framework for the evaluation of translational research initiatives By Molas-Gallart,Jordi; D’Este,Pablo; Llopis,Óscar; Rafols,Ismael
  5. Endogenous growth with capital in R&D production functions By Fernando Sánchez-Losada
  6. Retours d’expérience concernant les activités de veille stratégique dans les entreprises : vers une évolution de l'ingénierie ? Une étude de cas dans une grande organisation d’un secteur industriel By Manelle Guechtouli; Serge Amabile; Adrien Peneranda
  7. National or international public funding? Subsidies or loans? Evaluating the innovation impact of R&D support programmes By Huergo, Elena; Moreno, Lourdes
  8. Trade Liberalization and Optimal R&D Policies with Process Innovation By Thanh Le; Cuong Le Van
  9. Does Massive Funding Support of Researchers Work?: Evaluating the Impact of the South African Research Chair Funding Initiative By J.W. Fedderke and M. Velez
  10. Connections Matter: How Personal Network Structure Influences Biomedical Scientists’ Engagement in Medical Innovation By Llopis,Oscar; D’Este,Pablo
  11. Evaluation of Small Business Innovation Research Programs in Japan By Inoue, Hiroyasu; Yamaguchi, Eiichi
  12. Technology, trade, and growth: The role of education By Prettner, Klaus; Strulik, Holger
  13. R&D networks: theory, empirics and policy implications By Michael D. König; Xiaodong Liu; Yves Zenou
  14. Crowd science: it is not just a matter of time (or funding) By Eleftheria Vasileiadou
  15. Diffusion of Technology and Convergence of Income among Countries By Sumru Oz
  16. Home Country Bias in the Legal System: Empirical Evidence from the Intellectual Property Rights Protection in Canada By Joseph Mai; Andrey Stoyanov
  17. Business ICT Adoption and Open Access: The Example of SMEs at Industrial Parks in the Netherlands By Bert Sadowski
  18. Equalizing Superstars: The Internet and the Democratization of Education By Daron Acemoglu; David Laibson; John A. List

  1. By: Vahagn Jerbashian (Facultat d'Economia i Empresa; Universitat de Barcelona (UB))
    Abstract: In this paper I present an endogenous growth model where the engine of growth is in-house R&D performed by high-tech firms. I model knowledge (patent) licensing among high-tech firms. I show that if there is knowledge licensing, high-tech firms innovate more and economic growth is higher than in cases when there are knowledge spillovers or there is no exchange of knowledge among high-tech firms. However, in case when there is knowledge licensing the number of high-tech firms is lower than in cases when there are knowledge spillovers or there is no exchange of knowledge.
    Keywords: Knowledge Licensing, Intra-firm R&D, Competitive Pressure,Endogenous Growth.
    JEL: O30 O41 L16
    Date: 2014
  2. By: Gilbert Giacomoni (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris, IRG - Institut de Recherche en Gestion - Université Paris-Est Créteil Val-de-Marne (UPEC) : EA2354 - Université Paris-Est Marne-la-Vallée (UPEMLV)); Rémi Jardat (ISTEC - Institut supérieur des Sciences, Techniques et Economie Commerciales - ISTEC, CNAM Paris - Conservatoire National des Arts et Métiers - Conservatoire National des Arts et Métiers (CNAM))
    Abstract: D'après l'Organisation Mondiale de la Propriété Intellectuelle et l'Organisation Mondiale du Commerce, un élément de nouveauté inclut des caractéristiques nouvelles ne faisant pas partie du fond de connaissances existantes dans le domaine technique considéré. Nous partons de l'idée qu'un concept d'objet, de procédés, d'organisations ou de marchés est novateur quand il y a survenance d'un processus d'hybridation de fonds de connaissances jusque-là indépendants à l'issue duquel, de nouvelles identités émergent sur un nouveau fond de connaissance. Nous proposons une théorie générale pour concevoir de telles hybridations au cours d'un processus d'exploration sélective impliquant la rationalité, l'imaginaire, la mémoire, l'analogie et la réflexivité. Notre objet d'étude est une hydre scientifique dont nous cherchons à comprendre les mécanismes de la régénérescence.
    Keywords: innovation, invention, création, conception, mémoire, imaginaire, hybridation, analogie, réflexivité, knowledge, cognition,
    Date: 2014–02–03
  3. By: Molas-Gallart,Jordi; D’Este,Pablo; Llopis,Óscar; Rafols,Ismael
    Abstract: This paper will propose a framework for evaluating translational research by identifying the way in which translational research occurs in practice (rather than the formal linear stages in which the results of such process are typically presented). Following previous work on methods to evaluation science-society interactions, our approach will focus on the processes of TR and the ways in which public initiatives to support new ways of conducting research succeed or fail. Our starting point is that TR is expressed through complex cycles where knowledge is moving back and forth through the bedside-to-bench continuum across various channels, giving rise to complex interactions between research performers and the user of the results of such research. The approach is rooted on empirical context of IDIBAPS, a university-hospital joint institute in Barcelona, one of the European centre of excellence for TR, and a study on social networks and knowledge flows in the Spanish Biomedical Research Networking Centres (CIBERs). Further, we suggest that interactions between biomedical actors are less than optimal because the distances that separate these different groups make the interactions difficult. We end up by stating that learning processes and knowledge exchange interactions are facilitated and strengthened by five forms of proximity: cognitive, social, organisational, institutional and spatial.
    Keywords: Translational Research, evaluation, Knowledge flows, distances, clinical research, Medical innovation
    JEL: D83 H51 I18
    Date: 2014–03–06
    Date: 2014
  5. By: Fernando Sánchez-Losada (Facultat d'Economia i Empresa; Universitat de Barcelona (UB))
    Abstract: In this paper we claim that capital is as important in the production of ideas as in the production of final goods. Hence, we introduce capital in the production of knowledge and discuss the associated problems arising from the public good nature of knowledge. We show that although population growth can affect economic growth, it is not necessary for growth to arise. We derive both the social planner and the decentralized economy growth rates and show the optimal subsidy that decentralizes it. We also show numerically that the effects of population growth on the market growth rate, the optimal growth rate and the optimal subsidy are small. Besides, we find that physical capital is more important for the production of knowledge than for the production of goods.
    Keywords: knowledge, public good, growth.
    JEL: O30 O40 O41
    Date: 2014
  6. By: Manelle Guechtouli; Serge Amabile; Adrien Peneranda
    Abstract: This paper is dealing with major issues on a competitive intelligence system. Our research is based on an inductive approach as we study the case of the competitive intelligence system of a big technological firm. Results identify 3 categories of factors that are widely discussed.
    Keywords: Competitive Intelligence, organization, issues, formal, informal.
    Date: 2014–02–25
  7. By: Huergo, Elena; Moreno, Lourdes
    Abstract: The objective of this study is to compare the effect of different types of public support for R&D projects on firms’ technological capabilities. We distinguish be-tween low-interest loans and subsidies and between national and European sup-port. Using data on 2,319 Spanish firms during the period 2002-2005, we estimate a multivariate probit to analyse the determinants of firms’ participation in public R&D programmes and, later, the impact of this participation on firms’ technologi-cal capabilities using different indicators. The results provide evidence of the ef-fectiveness of all treatments for improving firms’ innovative performance. Specif-ically, although the three kinds of public aid stimulate the intensity of R&D in-vestment, the highest impact corresponds to soft credits. In addition, national sub-sidies have a higher impact on internal R&D intensity than EU grants, but the op-posite relation is found as regards total R&D intensity. With respect to innovation outputs, apart from the indirect effect of public support by stimulating R&D in-tensity, we also find evidence of a direct effect of participation in the CDTI credit system and in the European subsidy programme on the probability of obtaining product innovations and applying for patents.
    Keywords: Soft loans, R&D subsidies, impact assessment
    JEL: H81 L2 L52 O3
    Date: 2014–03–07
  8. By: Thanh Le; Cuong Le Van
    Abstract: We set up a theoretical framework to discuss the impact of trade liberalization and R&D policies on domestic exporting firms' incentive to innovate and social welfare. In this framework, exporting firms invest in R&D to reduce their production costs and, in return, receive R&D subsidies from the government. While firms target at maximizing their profits, the government aims to maximize the social welfare. We consider different settings of firm competition to explore their strategic behaviours as well as the government's strategic behaviour at the policy stage. We find that tradeliberalization in the foreign market is always welfare enhancing and, in most cases, leads to higher export sales and R&D investments of firms, and raises productivity at firms and industry level. When firms are independent monopolies in the overseas market, it is optimal for the government not to provide any R&D subsidy. When goods are close substitutes, the social optimum can be achieved as a Nash equilibrium by applying an optimal R&D tax. Trade liberalization induces a higher R&D tax rate to be levied on firms. When firms also conduct business in the home market, it is always optimal for the government to provide firms with a financial support to their R&D activity. While this R&D subsidy is decreasing in the trade cost when firms are independent monopolies, its monotonicity in the trade costs is determined by the convexity of the R&D cost function when firms produce close substitutes.
    Keywords: Trade, R&D, subsidies, welfare
    JEL: F12 F13 F15 O31
    Date: 2014–02–25
  9. By: J.W. Fedderke and M. Velez
    Abstract: Does knowledge and innovation need to come with a big price tag? The question of resource allocation to research is of perennial concern for management of both public and private entities. In this study we evaluate whether a substantial increase in public funding to researchers makes a material difference to their productivity. To do so, we compare performance measures of researchers who were granted substantial funding against researchers with similar scholarly standing who did not receive such funding. We find that substantial funding does raise researcher performance - though the impact is moderate. Moreover, the impact is strongly conditional on the quality of the researcher who receives the funding, and is more successful in some disciplines than others. Moreover the cost per additional unit of output is such as to raise questions about the viability of the funding model. The implication is that public research funding will be more effective in raising research output where selectivity of recipients of funding is strongly conditional on the established track record of researchers.
    Keywords: Massive funding, funding initiative
    Date: 2014
  10. By: Llopis,Oscar; D’Este,Pablo
    Abstract: In this study, we analyze the determinants of biomedical scientists’ participation in various types of activities and outputs related to medical innovation. More specifically, we argue that scientists occupying brokerage positions among their contacts will in a more favorable position to deliver medical innovation outcomes, compared to scientists embedded in more dense networks. However, we also theorize that beyond a threshold, the coordination costs of brokerage may surpass its potential benefits. In addition to that, we study the influence of two individual-level attributes as potential determinants of the participation in medical innovation activities: cognitive breadth and perceived beneficiary impact. We situate our analysis within the context of the Spanish biomedical research framework, where we analyze a sample of 1,309 biomedical scientists.
    Keywords: Social Capital, Ego-Network Brokerage, Medical innovation, Translational Research, Perceived Beneficiary Impact, Cognitive Breadth
    JEL: D85 Z13 O31
    Date: 2014–03–05
  11. By: Inoue, Hiroyasu; Yamaguchi, Eiichi
    Abstract: Subsidizing small high-technology firms is now considered to be important in stimulating economies throughout the world. This is because fast growing small firms create new markets and jobs. The Small Business Innovation Research (SBIR) program has played an important role in the United States in subsidization providing two billion dollars every year. Japan started its own SBIR program inspired by that in the United States. This paper examines the direct effects of Japan's SBIR program through the attributes of firms. First, we compared the changes in sales, employment, and the number of patents between SBIR awardees and matching firms. However, SBIR awardees did not demonstrate better performance in sales or employment. Therefore, it seems that the direct effect of Japan's SBIR program has not produced positive results. However, it did increase the number of patents. Second, we examined the overall results by using regression models. Even with control variables, these results were unchanged. Therefore, we concluded that the results were robust.
    Keywords: Small business, Research policy, Innovation, SBIR, Japan
    JEL: O2 O3
    Date: 2014–02–24
  12. By: Prettner, Klaus; Strulik, Holger
    Abstract: We generalize a trade model with firm-specific heterogeneity and R&D-based growth to allow for an endogenous education decision of households and an endogenously evolving population. Our framework is able to explain cross-country differences in living standards and trade intensities by the differential pace of human capital accumulation among industrialized countries. Consistent with the empirical evidence, scale matters for relative economic prosperity as long as countries are closed, whereas scale does not matter in a fully globalized world. Interestingly, however, the average human capital level of a country influences its relative economic prosperity irrespective of its trade-openness. While being consistent with the empirical evidence, our framework has the additional advantage that steady-state growth of income does not hinge on the unrealistic assumption of an ever expanding population. --
    Keywords: technological progress,globalization,demographic change,education,human capital accumulation
    JEL: F10 I25 O31 O41
    Date: 2014
  13. By: Michael D. König; Xiaodong Liu; Yves Zenou
    Abstract: We study a structural model of R&D alliance networks in which firms jointly form R&D collaborations to lower their production costs while competing on the product market. We derive the Nash equilibrium of this game, provide a welfare analysis and determine the optimal R&D subsidy program that maximizes total welfare. We also identify the key firms, i.e. the firms whose exit would reduce welfare the most. We then structurally estimate our model using a panel dataset of R&D collaborations and annual company reports. We use our estimates to identify the key firms and analyze the impact of R&D subsidy programs. Moreover, we analyze temporal changes in the rankings of key firms and how these changes affect the optimal R&D policy.
    Keywords: R&D networks, key firms, optimal subsidies
    JEL: D85 L24 O33
    Date: 2014–03
  14. By: Eleftheria Vasileiadou
    Abstract: The last years, citizen science, or crowd science, has increased tremendously, both in number of projects, and number of participants. Most literature on crowd science focuses on its advantages, for both scientists, and the participating citizens. The challenges of crowd science come mainly from limited organizational capacity of some of these projects. As a result of this line of reasoning, the main issue becomes, how we can facilitate citizen science, and help it expand to more projects, and involve more (types of) participants. My aim in this discussion note is to make two points: first, that, most recent work on citizen science fails to elaborate on the new types of relationships, practices and interactions that are facilitated by information and communication technologies, when compared to traditional volunteer science. The second point is that there are pronounced disciplinary differences among citizen science projects, something that, again, is generally being missed in much recent work. Missing these points can lead us to imagine that it’s only a matter of time (and of course funding) before all sciences catch up with citizen science. Such a line of thought can result in investing resources (money, time, effort) in projects and infrastructures that are doomed to fail, because of their topic. I conclude by offering some thoughts on a research agenda.
    Keywords: business crowd science, funding
    Date: 2014–03
  15. By: Sumru Oz (Koc University-TUSIAD Economic Research Forum)
    Abstract: Theoretical models of growth reveal that either exogenous or endogenous, technology is the main driving force behind the long-run economic growth. Furthermore, in the endogenous growth framework, diffusion of technology is the basic mechanism of per capita income convergence among countries. This paper analyzes the per capita income convergence implications of foreign direct investment (FDI), considering that the latter is an international technology diffusion channel. Although FDI appears to be an important channel in the diffusion of technology models theoretically, empirical evidence related to the effect of FDI on growth is ambiguous. By applying the approach of Ben-David (1996), which focuses on convergence among countries grouped with respect to their mutual trade, this paper presents evidence that per capita income convergence exists among FDI home and host countries using three different convergence measures. The relatively higher speed of convergence prevailed among countries linked by FDI justifies the technological spillovers accompanied by FDI and provides evidence that FDI inflow is a mechanism of per capita income convergence among countries by allowing the diffusion of technology.
    Keywords: Economic Growth; FDI; Economic Integration; Technology Diffusion; Income Convergence.
    JEL: O47 O33 F43 F15 F21
    Date: 2014–03
  16. By: Joseph Mai (Department of Economics, York University, Toronto, Canada); Andrey Stoyanov (York University)
    Abstract: Are judges concerned with the effect of their decisions on national welfare in the same way as policy-makers do? In this paper we analyze this question by examining the outcomes of intellectual property rights (IPR) litigations between domestic and foreign .rms. We develop a simple model of oligopoly where foreign .rms have access to more efficient production technology and show that weak protection of foreign-owned IPR always leads to welfare gains at home. We also show that the positive welfare e¤ect increases with the size of the foreign innovator, as well as in the size of the domestic imitator. We test predictions of the model using the data on all Canadian IPR cases over a four-year period. We find that domestic firms are substantially more likely, by 17 percentage points, to succeed in litigations with foreign firms than with other Canadian firms. We also find evidence supporting the hypothesis of the home bias in the legal system. Specifically, we establish that courts' decisions are aligned with welfare maximization principles so that foreign firms are less likely to win in those cases when the implied welfare gains from not protecting foreign IPR are greater.
    Date: 2014–02–03
  17. By: Bert Sadowski
    Abstract: Information and Communication Technologies (ICT) provide small- and medium-sized enterprises (SMEs) with an option to create and exploit strategic opportunities. Prior investment in ICT infrastructure can lead to follow-up decisions to adopt new ICT services, but there is no guarantee that SMEs will also use emerging strategic opportunities in adopting these services. In this context, the paper examines whether or not the adoption of advanced ICT infrastructure and advanced ICT services by SMEs has been inter-related and was depending on number of firm-specific, market-specific and location-specific factors. In contrast to previous studies, the focus is on the extent to which the adoption of ICT infrastructure and ICT services has been driven by expectations about open access by SMEs. Open access was conceptualized as expectations by these companies about cheaper prices in the future, better quality of service and more competition on the infrastructure. The research uses data from a survey undertaken among 247 SMEs on different industrial parks in the Netherlands in February 2011. The results of the analysis show that SMEs value open access factors very high with respect to their choice to opt for new ICT infrastructure and new ICT services.
    Keywords: business ICT, SME, Open Access
    Date: 2014–02
  18. By: Daron Acemoglu; David Laibson; John A. List
    Abstract: Internet-based educational resources are proliferating rapidly. One concern associated with these (potentially transformative) technological changes is that they will be disequalizing – as many technologies of the last several decades have been – creating superstar teachers and a winner-take-all education system. These important concerns notwithstanding, we contend that a major impact of web-based educational technologies will be the democratization of education: educational resources will be more equally distributed, and lower-skilled teachers will benefit. At the root of our results is the observation that skilled lecturers can only exploit their comparative advantage if other teachers complement those lectures with face-to-face instruction. This complementarity will increase the quantity and quality of face-to-face teaching services, potentially increasing the marginal product and wages of lower-skill teachers.
    JEL: A20 I20 I24 O33
    Date: 2014–01

This nep-knm issue is ©2014 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.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.