nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2014‒09‒05
seven papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Knowledge Economy Gaps, Policy Syndromes and Catch-up Strategies: Fresh South Korean Lessons to Africa By Asongu Simplice
  3. Knowledge Economy and Financial Sector Competition in African Countries By Asongu Simplice
  4. Localization of Knowledge-creating Establishments By INOUE Hiroyasu; NAKAJIMA Kentaro; SAITO Yukiko
  5. Impact of research tax credit on R&D and innovation: evidence from the 2008 French reform By Loriane Py; Antoine Bozio; Delphine Irac
  6. Knowledge acquisition within an organization: How to retain a knowledge worker using wage profile and non-monotonic knowledge accumulation By Ngo Van Long; Antoine Soubeyran; Raphael Soubeyran
  7. Knowledge-Based Economy in the Competitiveness Equation. The Case of the Republic of Serbia By Tosic, Natasa; Iordan-Constantinescu, Nicolae

  1. By: Asongu Simplice (Yaoundé/Cameroun)
    Abstract: Africa’s overall knowledge index fell between 2000 and 2009. South Korea’s economic miracle is largely due to a knowledge-based development strategy that holds valuable lessons for African countries in their current pursuit towards knowledge economies. Using updated data (1996-2010), this paper presents fresh South Korean lessons to Africa by assessing the knowledge economy (KE) gaps, deriving policy syndromes and providing catch-up strategies. The 53 African frontier countries are decomposed into fundamental characteristics of wealth, legal origins, regional proximity, oil-exporting, political stability and landlockedness. The World Bank’s four KE components are used: education, innovation, information & communication technology (ICT) and economic incentives & institutional regime. Absolute beta and sigma convergence techniques are employed as empirical strategies. With the exception of ICT for which catch-up is not very apparent, in increasing order it is visible in: innovation, economic incentives, education and institutional regime. The speed of catch-up varies between 8.66% and 30.00% per annum with respective time to full or 100% catch-up of 34.64 years and 10 years. Based on the trends and dynamics in the KE gaps, policy syndromes and compelling catch-up strategies are discussed. Issues standing on the way to KE in Africa are dissected with great acuteness before South Korean relevant solutions are provided. The paper is original in its provision of practical policy initiatives drawn from the Korean experience to African countries embarking on a transition to KE.
    Keywords: Knowledge economy; Catch-up; South Korea; Africa
    JEL: O10 O30 O38 O55 O57
    Date: 2014–08
  2. By: Yahya özdemir
    Abstract: Azerbaijan, Turkey, Afghanistan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan and Uzbekistan in addition to research, technology development and production partner countries ' Innovation structures sharing with R&D Center in technoparks, thanks to the advanced technology and the production of these technoparks produced this advanced technology, technology to provide application process so that it can be imported, and the country's socio-economic and technical ways by its proponents, to serve together in the development of the total synergies "of the economic cooperation organization" will have an important place in the world economy and will create a strategic vision in this geography perception is of great importance.Advanced technologies in the world, especially in the last quarter century of rapid change, radical innovation were required to compete in important decisions, triggered by the national network of cooperation structures is a very significant changes in participates in the regional country or new technology generation and transfer systems to be released; starting from the most basic research on the effect of knowledge production, commercialization, distribution of the total well-being of society is an important dating "shining knowledge value chain". This important change, has become the main formative element of the economies. Recent advances in the knowledge economy and the resulting new strategic theories, knowledge, technology transfer and increased mobility at the long distances, the concept of regional development is a brand new technological cooperation aims and information focusing on the transformation processes of growth of the economies of developed nations are experiencing today, which is the most important technological innovation in the vision of the economic development advanced plays an important role, evolving processes trigger in all aspects of the right to readmost threats and opportunities that might be the best analysis, by passing the appropriate policies for countries in their visions, and entrusted a vital importance.
    Keywords: TURKEY, Socio-economic development, Other issues
    Date: 2013–09–05
  3. By: Asongu Simplice (Yaoundé/Cameroun)
    Abstract: The goal of this paper is to assess how knowledge economy (KE) plays out in financial sector competition. It suggests a practicable way to disentangle the effects of different components of KE on various financial sectors. The variables identified under the World Bank’s four knowledge economy index (KEI) are employed. An endogeneity robust panel instrumental variable fixed-effects estimation strategy is employed on data from 53 African countries for the period 1996-2010. The following findings are established. First, education and innovation in terms of scientific and technical publications broadly bear an inverse nexus with financial development. Second, the incidence of information and communication technologies is positive on all financial sectors but increases the non-formal sectors to the detriment of the formal sector. Third, economic incentives have positive implications for all sectors though the formal financial sector benefits most. Fourth, institutional regime is positive (negative) for the semi-formal (informal) financial sector. The findings contribute at the same time to the macroeconomic literature on measuring financial development and respond to the growing fields of informal sector importance, microfinance and mobile banking by means of KE promotion. Policy implications and future research directions are discussed.
    Keywords: Financial development; Knowledge Economy; Africa
    JEL: G21 O10 O34 P00 P48
    Date: 2014–08
  4. By: INOUE Hiroyasu; NAKAJIMA Kentaro; SAITO Yukiko
    Abstract: This study investigates the localization of establishment-level knowledge creation by using data from the Japanese patent database. Using distance-based methods, we obtained the following results. First, Japanese patent-creating establishments are significantly localized at the 5% level, with the range of localization at approximately 80 km. Second, localization was found for all patent technology classes, while the extent of localization differs among the classes. Third, the extent of localization is stronger in more creative establishments, in terms of both the number of patents created and the number of citations. These results suggest that geographical proximity is important for knowledge spillover regardless of the concerned technology and that creative establishments require external knowledge.
    Date: 2014–08
  5. By: Loriane Py; Antoine Bozio; Delphine Irac
    Abstract: R&D and innovation are seen as key determinants of productivity and competitiveness and it has been recognized that the low growth performances of EU countries of the last decades can largely be attributable to their poor research performance, as compared to the US. As a consequence, most EU countries, in particular since the adoption of the Lisbon strategy, have provided tax incentives to increase business R&D, which still remains below the targeted level of 2% of GDP. In the actual context of large public deficit and given the amount of public spending involved, it is crucial to evaluate the impact and effectiveness of these policies. The aim of this paper is to contribute to this literature by evaluating the impact of the research tax credit system on both R&D investments and innovation. In our empirical analysis, we focus on the 2008 French reform, which was marked by the adoption of a pure volume-based scheme.Our empirical analysis relies on an ex post econometric evaluation of the 2008 reform. It is based on the combination of four datasets over the period 2004-2010: i) the yearly survey on R&D investments conducted by the French Ministry of Research which contains detailed information on firms' R&D, ii) the PATSTAT dataset of the European Patent Office which enables us to measure innovation at the firm-level (as measured by a count of the number of patents) iii) the tax files which enables us to identify all the firms in France which benefit from the research tax credit as well as it amount, and iv) the FIBEN dataset of the Banque de France which is used to control for firms' economic and financial characteristics. Our final sample includes 48,111 firms, from which 51.3% have taken advantage of the research tax credit. Our econometric strategy relies on the implementation of a difference in difference which amounts to comparing R&D and innovation outcome for firms which benefit from the research tax credit and for those which do not, before and after the implementation of the reform. The fact that each year in France, nearly 49% of firms which are registered in the R&D survey and which have positive R&D expenditures do not ask for the research tax credit can have several explanations: firms might not be aware of the policy, their R&D activities might not be eligible to the tax credit, asking for the research tax credit might be too complex and costly or firms might want to avoid a tax audit. Nevertheless, as we cannot exclude the possibility of a selection bias in the sample of treated and control firms, we also implemented propensity score matching analysis and are currently trying to refine our empirical strategy by using the suppression of the research tax credit ceiling. Our preliminary results suggest that firms which did benefit from the R&D tax credit relative to those that did not ask for it have significantly increased their R&D expenditures after the 2008 reform. Our results also show that the estimated elasticity differs when we focus on the intensive margin (i.e. when the sample is limited to firms which already ask for the research tax credit before the reform) as the reform led to a large number of firm entry in the tax credit scheme which are relatively smaller in terms of R&D investments. More importantly, we do not find evidence of a significant impact on innovation as measured by the number of patents at the firm level, up to 2 years after the implementation of the reform. Though the time span of analysis is short and that patenting can take more years, these preliminary results suggest that the effects of research tax credit on innovation might be more limited than expected. Finally, our results enable us to shed light on the relative effectiveness of the volume scheme as compared to the incremental one.
    Keywords: France, Tax policy, Impact and scenario analysis
    Date: 2014–07–03
  6. By: Ngo Van Long; Antoine Soubeyran; Raphael Soubeyran
    Abstract: In this paper, we consider a knowledge accumulation problem within an organization. We depart from the human capital theory initiated by Becker (1962, 1964) and consider an organization that cannot prevent the worker from quitting and using the knowledge outside the organization. We study how the employer optimally distorts the knowledge accumulation path and chooses a wage profile in order to mitigate the commitment problem. We show that knowledge accumulation is delayed: the fraction of working time allocated to knowledge creation is highest at the early career stage, falls gradually, then rises again, before falling finally toward zero. We determine the effect of a change in the severity of the enforcement problem (or the specificity of knowledge). We also discuss the form of the optimal life-cycle wage profiles, the role of the initial knowledge level and the role of discounting Dans ce papier, nous considérons un problème d'accumulation de connaissances dans une organisation. Nous partons de la théorie du capital humain lancée par Becker (1962, 1964) et considérons une organisation qui ne peut pas empêcher un employé de quitter et d’utiliser la connaissance à l'extérieur de l'organisation. Nous montrons comment l'employeur manipule de façon optimale le sentier d'accumulation de connaissances et choisit un profil de salaire pour atténuer le problème d'engagement. Nous montrons que l'accumulation de connaissances est retardée : la fraction de temps alloué à la création de connaissances est la plus haute au premier stade de la carrière, puis elle tombe progressivement, ensuite, elle monte de nouveau, avant de tomber finalement vers le zéro. Nous déterminons l'effet de la spécificité de connaissances. Nous discutons aussi la forme des profils de salaire optimaux, le rôle du niveau de connaissance initial et du rôle du fait du taux d’actualisation.
    Keywords: Human capital,hold-up, contract, Capital humain, hold-up, contrat
    Date: 2014–06–01
  7. By: Tosic, Natasa; Iordan-Constantinescu, Nicolae
    Abstract: The study presents the new approaches of the knowledge‐based economies and competitiveness policy using two major indexes and methodologies developed by two prestigious world institutions, the World Bank and the World Economic Forum, as well as the practical consequences of their implementation at the level of individual economies in a dynamic globalised world. The main conclusion derived from the study is that without firm and steady measures for a comprehensive implementation of the mix of policies included in the two indexes, there are fewer chances of winning a better position of a country in the global concert of people and increasing the nation's wealth and standard of living. A particular attention is given to the case of the Republic of Serbia, candidate country to the European Union, pointing out both the achievements and the need for further action at the national level.
    Keywords: knowledge‐based economy, competitiveness, globalisation, Global Competitiveness Index, Serbia
    JEL: E42 E61 F36 F43 G15 O47
    Date: 2014–08–01

This nep-knm issue is ©2014 by Laura Ştefănescu. 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.