nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2015‒01‒31
nine papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. An Innovation Policy Framework: Bridging the gap between industrial dynamics and growth By Braunerhjelm, Pontus ; Henrekson, Magnus
  2. The involvement of employees in knowledge management in the light of the research results By Janina Stankiewicz ; Marta Moczulska
  3. Knowledge spillovers through international supply chains By Piermartini, Roberta ; Rubínová, Stela
  4. Intellectual property rights hinder sequential innovation: Experimental evidence By Brüggemann, Julia ; Crosetto, Paolo ; Meub, Lukas ; Bizer, Kilian
  5. Effects of intellectual property rights protection and integration on economic growth and welfare By Lai, Chung-hui ; Wang, Vey
  6. In Search of Growth in a Future with Diminished Expectations. The Case of Austria By Fritz Breuss
  7. Individual determinants of inventor productivity: Report and preliminary results with evidence from linked human capital and patent data By Frosch, Katharina ; Harhoff, Dietmar ; Hoisl, Karin ; Steinle, Christian ; Zwick, Thomas
  8. Financing Innovation with Unobserved Progress By Zehao Hu
  9. Asymmetry of the information and the knowledge between owners and workers in large family companies, as the determinant of their success By Ireneusz Maj

  1. By: Braunerhjelm, Pontus (Swedish Entrepreneurship Forum, Department of Industrial Economics and Management, Centre of Excellence for Science and Innovation Studies (CESIS) & Royal Institute of Technology (KTH) ); Henrekson, Magnus (Research Institute of Industrial Economics (IFN) )
    Abstract: This paper examines policy measures that foster the creation of innovations with high inherent potential and that simultaneously provide the right incentives for individuals to create and expand firms that disseminate such innovations in the form of highly valued products. In so doing, we suggest an innovation policy framework based on two pillars: (i) the accumulation, investment, and upgrading of knowledge and (ii) the implementation of mechanisms that enable knowledge to be exploited such that growth and societal prosperity are encouraged. Knowledge is a necessary but far from sufficient condition for growth. To secure industrial dynamics and growth in the long term, institutions must be designed both to encourage sophisticated knowledge investments and to stimulate the creation, diffusion and productive use of knowledge in all sectors of the economy. We argue that the latter area has been overlooked in the policy discussion and that a coherent innovation policy framework must include tax policy, labor market regulation, savings channeling, competition policy, housing market regulation, and infrastructure to foster growth and future prosperity.
    Keywords: Entrepreneurship; Innovation; Institutions; Innovation policy; R&D; Technology transfer; University-industry relations
    JEL: J24 O31 O32 O57
    Date: 2015–01–13
  2. By: Janina Stankiewicz (University of Zielona Gora, Polzand ); Marta Moczulska (University of Zielona Gora, Polzand )
    Abstract: The development of information technology, increase demand for mental work, shortening product life cycle and competing of the quality meant that knowledge is widely considered to be one of the most important resources of the organization. Taking into account activities related to the process of knowledge management (such as the acquisition of knowledge from the environment, identifying its in the organization, knowledge sharing) and their sources (internal and external stakeholders) can be noted that any knowledge management requires the involvement of employees. Based on the analysis of the employees engagement was found that managing knowledge should be supported by the affective commitment and focused on work organization and environment. They exhibit a specific behavior. Recognizing this problem for interesting the empirical research was carried out. Their goal was to identify the prevalence of involvement of employees in knowledge management and the desired employee behavior in the various activities of this processes. The study conducted among enterprises of Lubuskie province. The research used a survey method. It was found that the surveyed enterprises implement the activities related to knowledge management in a selective manner. In the light of the adopted criteria only one (out of 102) of the surveyed companies could be considered as knowledge management. It also seems that the attention is not focused on the creation of knowledge but its acquisition and protection. Taking into account the results of research on behavior conducive to knowledge management can be concluded that the climate for creativity exists at the level of teams but not the organization.
    Keywords: employees involvement, knowledge management, process, activity, behaviour
    JEL: D83
    Date: 2014–12
  3. By: Piermartini, Roberta ; Rubínová, Stela
    Abstract: We also show that the evidence that knowledge spillovers flow along the supply chains is more robust than the traditional finding that knowledge spillovers depend on geographical distance or trade flows. Our findings support policies that favour participation in supply chains to foster economic development, but also show that potential gains depend on the type of participation.
    Keywords: Knowledge spillovers,International production networks,Intermediate inputs trade,Innovation
    JEL: F43 O31
    Date: 2014
  4. By: Brüggemann, Julia ; Crosetto, Paolo ; Meub, Lukas ; Bizer, Kilian
    Abstract: In this paper we contribute to the discussion on whether intellectual property rights foster or hinder innovation by means of a laboratory experiment. We introduce a novel Scrabble-like creativity task that captures most essentialities of a sequential innovation process. We use this task to investigate the effects of intellectual property allowing subjects to assign license fees to their innovations. We find intellectual property to have an adversely effect on welfare as innovations become less frequent and less sophisticated. Communication among innovators is not able to prevent this detrimental effect. Introducing intellectual property results in more basic innovations and subjects fail to exploit the most valuable sequential innovation paths. Subjects act more self-reliant and non-optimally in order to avoid paying license fees. Our results suggest that granting intellectual property rights hinders innovations, especially for sectors characterized by a strong sequentiality in innovation processes.
    Keywords: innovation,intellectual property,laboratory experiment,real effort task,creativity
    JEL: C91 D89 K39
    Date: 2015
  5. By: Lai, Chung-hui ; Wang, Vey
    Abstract: The protection of intellectual property rights (IPR) and the distribution of rent are central issues in R&D-based growth models with the return to innovation serving as the engine of growth. In this paper the authors consider the strength of the intellectual property rights and franchise bargaining system to analyze how the rent/franchise fee and institutional quality affect the economic growth and social welfare. It is found that the intermediate good firm with full IPR protection charges a price equal to the marginal cost. In addition, if imitated technologies exhibit a labor spillover effect, decreasing the IPR protection will increase the rent/franchise fee. The authors also show that the growth-maximizing effects of IPR protection, the bargaining power of intermediate goods firms, and the imitation of technology are no longer equivalent to those effects on welfare-maximization since the welfare result depends on the relative degrees of the growth enhancing effect and crowding-out effect on production.
    Keywords: IPR,R&D,bargaining,endogenous growth,social welfare
    JEL: L11 O40 O30
    Date: 2015
  6. By: Fritz Breuss (WIFO )
    Abstract: The euro area has – in contrast to the USA – still not recovered from the "Great Recession" 2009 and the following euro crisis. Some fear that Europe could embark into a decade of "secular stagnation" like Japan in the recent past. The US success can be attributed to the application of the strategy of the "three arrows": a co-ordinated expansionary fiscal and monetary policy cum permanent structural reforms. In contrast, the euro area has its hands tied by a self-imposed restriction in fiscal policy (new fiscal rules). Thus, the euro area remains as a growth-stimulating strategy only an expansionary monetary policy by the ECB plus "structural reforms" at the member country level. Austria – after the expiring of the hitherto "EU growth bonus" – has also to look for new strategies to stimulate growth by its own. In simulations with a macro-growth model for Austria alternative growth scenarios are analysed: structural reforms to improve efficiency in product und labour markets, investment in knowledge and innovation (R&D), more globalisation, and traditional demand policies (monetary and fiscal). The most promising strategies are more globalisation and structural reforms plus R&D investments. Most of these strategies would stimulate growth without impairing fiscal sustainability.
    Date: 2015–01–07
  7. By: Frosch, Katharina ; Harhoff, Dietmar ; Hoisl, Karin ; Steinle, Christian ; Zwick, Thomas
    Abstract: This report offers new insights into the drivers of inventor productivity at the individual level. It includes well-known drivers, such as inventor age and education, and controls for inventor team size, and firm/applicant information, as well as period and technology field effects derived from patent data. In addition, it adds inventor characteristics that have been largely neglected in existing studies on inventor productivity, such as the breadth of work experience, divergent thinking skills, cognitive problem-solving skills, the use of knowledge sourced from networks within and outside of the inventors' field of expertise, and personality traits. The empirical model draws on a new dataset that matches information about inventors' human capital, such as creative skills, personality traits, networks, and career biographies (collected with a self-administered survey) with patenting histories for 1932 German inventors between the years 1978 and 2012 for clean technology, nanotechnology, and mechanical elements. Our results indicate that the additional inventor characteristics double the proportion of total variation of productivity explained by individual characteristics. Furthermore, we find differences in the importance of individual characteristics across industries and along the productivity distribution, between more and less productive inventors.
    Date: 2015
  8. By: Zehao Hu (Department of Economics, University of Pennsylvania )
    Abstract: This paper studies the problem of incentivizing an agent in an innovation project when the progress of innovation is known only to the agent. I assume the success of innovation requires an intermediate breakthrough and a final breakthrough, with only the latter being observed by the principal. Two properties of optimal contracts are identified. First, conditional on the total level of financing, optimal contracts induce efficient actions from the agent. Second, the reward for success to the agent is in general non-monotone in success time and later success may be rewarded more. The latter property is consistent with the use of time-vested equity as part of compensation schemes for entrepreneurs. I then extend the model by introducing randomly arriving buyers and apply it to study the financing of startup firms with opportunities to be acquired. I show that the potential acquisition increases the cost of providing incentives. Since an agent with low level of progress is “bailed out” when an offer is made to acquire firms with both high and low levels of progress, the agent has more incentive to shirk. In response, the principal reduces the likelihood that the firm with high level of progress is sold. Moreover, the total financing provided by the principal is less compared to the environment without buyers.
    Keywords: Contract Theory, Dynamic Agency, Multistage Innovation, Asymmetric Information, Venture Capital, Acquisition
    JEL: C73 D82 G32
    Date: 2014–11–26
  9. By: Ireneusz Maj (Meble Polska )
    Abstract: In the majority economic areas of the world, family businesses are the overwhelm-ing majority, it is certain in the case of small and medium-sized businesses. Large family companies – in opposition to common opinion – are not the economy margin. It is other way round, they are not directly identifiable as a family compa-nies. Family companies often reached global success in just decades.
    Keywords: information, knowledge, asymmetry of information, asymmetry of knowledge, large family companies
    Date: 2014–12

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