nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2015‒02‒05
ten papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Knowledge acquisition in small and medium-sized enterprises By Beata Glinkowska
  2. Why We Need Knowledge-based Journalism in Politicized Science Debates By Nisbet, Matthew C; Declan Fahy
  3. Localized Knowledge Spillovers: Evidence from the Agglomeration of American R&D Labs and Patent Data By Buzard, Kristy; Carlino, Gerald A.; Hunt, Robert M.; Carr, Jake; Smith, Tony E.
  4. Optimal contracting and the organization of knowledge By William Fuchs; Luis Garicano; Luis Rayo
  5. Combinatorial Innovation and Research Strategies: Theoretical Framework and Empirical Evidence from Two Centuries of Patent Data By Clancy, Matthew
  6. Public ICT R&D funding in the European Union By Juraj Stan?ík; Ibrahim Kholilul Rohman
  7. The geography and evolution of complex knowledge By Pierre-Alexandre Balland; David L. Rigby
  8. Disentangling the Influence of Knowledge on Processing Strategies in Choice Modelling. By Erlend Dancke Sandorf; Danny Campbell; Nick Hanley
  9. Innovation and SMEs Patent Propensity in Korea By Han, Junghee; Heshmati, Almas
  10. Innovation, Governance and Competition By Roychoudhury, Saurav; Bhowmik, Anuj; Chattopadhyay, Srobonti

  1. By: Beata Glinkowska (Uniwersytet Lodzki)
    Abstract: This article applies to the process of organizational knowledge acquisition by managers and specialists with possesses manager license. In the theoretical part explained concepts of knowledge, knowledge management, knowledge sources, the step of creating and acquiring knowledge. The research part focuses on the presentation and analysis of obtained results of research performed by the author.
    Keywords: small and medium- sized enterprises, manager, knowledge, absorption of knowledge, knowledge acquisition
    JEL: L21
    Date: 2015–01
  2. By: Nisbet, Matthew C; Declan Fahy
  3. By: Buzard, Kristy (Syracuse University); Carlino, Gerald A. (Federal Reserve Bank of Philadelphia); Hunt, Robert M. (Federal Reserve Bank of Philadelphia); Carr, Jake (The Ohio State University); Smith, Tony E. (University of Pennsylvania)
    Abstract: We employ a unique data set to examine the spatial clustering of private R&D labs, and, using patent citations data, we provide evidence of localized knowledge spillovers within these clusters. Jaffe, Trajtenberg, and Henderson (1993, hereafter JTH) provide an aggregate measure of the importance of knowledge spillovers at either the state or metropolitan area level. However, much information is lost regarding differences in the localization of knowledge spillovers in specific geographic areas. In this article, we show that such differences can be quite substantial. Instead of using fixed spatial boundaries, we develop a new procedure — the multiscale core-cluster approach — for identifying the location and size of specific R&D clusters. This approach allows us to better capture the geographic extent of knowledge spillovers. We examine the evidence for knowledge spillovers within R&D clusters in two regions: the Northeast Corridor and California. In the former, we find that citations are from three to six times more likely to come from the same cluster as earlier patents than in comparable control samples. Our results are even stronger for labs located in California: Citations are roughly 10 to 12 times more likely to come from the same cluster. Our tests reveal evidence of the attenuation of localization effects as distance increases: The localization of knowledge spillovers is strongest at small spatial scales (5 miles or less) and diminishes rapidly with distance. At the smallest spatial scales, our localization statistics are generally much larger than JTH report for the metropolitan areas included in their tests.
    Keywords: Spatial clustering; R&D; Knowledge spillover;
    JEL: O31 R12
    Date: 2015–01–01
  4. By: William Fuchs; Luis Garicano; Luis Rayo
    Abstract: We study contractual arrangements that support an efficient use of time in a knowledge-intensive economy in which agents endogenously specialize in either production or consulting. The resulting market for advice is plagued by informational problems, since both the difficulty of the questions posed to consultants and the knowledge of those consultants are hard to assess. We show that spot contracting is not efficient since lemons (in this case, self-employed producers with intermediate knowledge) cannot be appropriately excluded from the market. However, an ex-ante, firm-like contractual arrangement uniquely delivers the first best. This arrangement involves hierarchies in which consultants are full residual claimants of output and compensate producers via incentive contracts. This simple characterization of the optimal ex-ante arrangement suggests a rationale for the organization of firms and the structure of compensation in knowledge-intensive sectors. Our findings correspond empirically to observed arrangements inside professional service firms and between venture capitalists and entrepreneurs.
    Keywords: Contracting; experts; professional service firms; partnership; venture capital
    JEL: D86 J33 J44 L22
    Date: 2014–10
  5. By: Clancy, Matthew
    Abstract: I develop a knowledge production function where new ideas are built from combinations of pre- existing elements. Parameters governing the connections between these elements stochastically determine whether a new combination yields a useful idea. Researchers use Bayesian reasoning to update their beliefs about the value of these parameters and thereby improve their selection of viable research projects. The optimal research strategy is a mix of harvesting the ideas that look best, given what researchers currently believe, and performing exploratory research in order to obtain better information about the unknown parameters. Moreover, this model predicts research productivity in any one field declines over time if new elements for combination or new information about underlying parameters are not discovered. I investigate some of these properties using a large dataset, consisting of all US utility patents granted from 1836 to 2012. I use fine-grained technological classifications to show that optimal research in my model is consistent with actual innovation outcomes, and that the model can be used to improve the forecasting of patent activity in different technology classes. 
    Keywords: innovation; patents
    JEL: O31 O34
    Date: 2015–01–22
  6. By: Juraj Stan?ík (European Commission – JRC - IPTS); Ibrahim Kholilul Rohman (European Commission – JRC - IPTS)
    Abstract: The report provides a detailed analysis of the state of public expenditure on Information and Communication Technologies (ICT) Research and Development (R&D) in the European Union (EU). We also provide an interim assessment of the extent to which the Digital Agenda target about doubling public ICT R&D expenditures has been achieved. Furthermore, besides focusing on the EU, we compare these expenditures with public expenditures on ICT R&D in the EU’s main counterpart, the United States of America (US). Our analysis, covering the period 2006-2011, shows that EU ICT R&D public funding has been steadily growing. In 2011, it reached €6.1 billion which represented 6.6% of the whole public R&D funding. Regarding the comparison with the US, we conclude that the US government devotes more ICT R&D funds than all the EU Member States governments together but this gap has been shrinking and during the period 2006-2011 it decreased by 50%.
    Keywords: ICT; information and communication technologies; innovation; R&D; NABS; GBAORD; public funding; ICT R&D; EU; the US
    JEL: E61 H50 O32 O52 R12 R28
    Date: 2014–12
  7. By: Pierre-Alexandre Balland; David L. Rigby
    Abstract: There is consensus among scholars and policy makers that knowledge is one of the key drivers of long-run economic growth. It is also clear from the literature that not all knowledge has the same value. However, too often in economic geography and cognate fields we have been obsessed with counting knowledge inputs and outputs rather than assessing the quality of knowledge produced. In this paper we measure the complexity of knowledge across patent classes and we map the distribution and the evolution of knowledge complexity across U.S. cities from 1975 to 2004. We build on the 2-mode structural network analysis proposed by Hidalgo and Hausmann (2009) to develop a knowledge complexity index (KCI) for Metropolitan Statistical Areas (MSAs). The KCI is based on more than 2 million patent records from the USPTO, and combines information on the technological structure of 366 MSAs with the 2-mode network that connects cities to the 438 primary (USPTO) technology classes in which they have Relative Technological Advantage (RTA). The complexity of the knowledge structure of cities is based on the range and ubiquity of the technologies they develop. The KCI indicates whether the knowledge generated in a given city can be produced in many other places, or if it is so sophisticated that it can be produced only in a few select locations. We find that knowledge complexity is unevenly distributed across the U.S. and that cities with the most complex technological structures are not necessarily those that produce most patents.
    Keywords: Knowledge complexity, cities, patents, network analysis, economic geography, United States
    Date: 2015–01
  8. By: Erlend Dancke Sandorf (The Norwegian College of Fishery Science, Faculty of Biosciences, Fisheries and Economics, University of Tromsø – The Arctic University of Norway); Danny Campbell (Economics Division, University of Stirling, Scotland); Nick Hanley (School of Geography and Sustainable Development, University of St. Andrews)
    Abstract: This paper seeks to disentangle the effect of knowledge on processing strategies using data from a discrete choice experiment on cold-water corals in Norway. Cold-water corals are a deep-sea ecosystem for which we have limited scientific knowledge and for which public awareness is low, and consequently is likely to be an unfamiliar good to many members of the public. One simplifying strategy often employed by respondents in a choice experiment is to simply ignore some of the attributes, i.e. attribute non-attendance. After the initial presentation of the good, before answering the choice cards, the respondents were given a quiz over the material covered in the presentation. This provides us with an ex ante measure of their knowledge. We use a combination of discrete and continuous mixture models to disentangle the effects of variations in knowledge about the good. We use a respondent’s quiz score as covariates in the probability function of attending to an attribute. Our results show that knowledge, as measured by the quiz score, has a significant effect on the probability of attending to the attribute for three out of four attributes. This has direct implication for practitioners in that proper information may help avoid the use of simplifying strategies.
    Keywords: Attribute Non-Attendance, Discrete Choice Experiment, Knowledge, Attribute Processing Strategies, Cold water coral, ecosystem services
    JEL: Q51 Q57
    Date: 2015–02
  9. By: Han, Junghee (Chonnam National University); Heshmati, Almas (Jönköping University, Sogang University)
    Abstract: This paper analyzes the patent propensity as an outcome of innovative activities of regional SMEs. To achieve the aims, we apply robust regression analysis to estimate the models to test 5 research hypotheses using 263 firm level data located at Gwangju region in Korea. Our empirical results show that a firm's industry characteristics, such as machinery and automotive parts industry, is negatively related with propensity to patent innovation. Also, unlike expectations, the InnoBiz firms designated as innovative SMEs by the government are not performing differently than general firms. Only the CEO's academic credentials are positively related with propensity to patent. From the findings, we can conclude that patenting propensity is not directly related with a firm's characteristics but mainly to CEO's managerial strategy. Also, we cannot find evidence for policy effectiveness from public support given to InnoBiz firms as part of the state policy to nurture photonic industry to boost regional economic development. Given the lack of strong policy effects, a new industry policy should be considered to actively promote SMEs innovativeness.
    Keywords: patent propensity, photonic industry, SMEs growth, R&D, innovation, InnoBiz, Korea
    JEL: C51 D22 O31 O32
    Date: 2015–01
  10. By: Roychoudhury, Saurav; Bhowmik, Anuj; Chattopadhyay, Srobonti
    Abstract: We consider a two period career concern model where corporate governance is a decisive factor for innovation efforts by a manager. In the beginning of the frst period, a manager decides whether to innovate. Prior to the innovation decision, the ability of the manager is unknown to the firm but known to the manager and an expected wage is paid based on a probability distribution of managerial abilities. The success of the innovation is both a function of the managerial ability and the product market competition and the beliefs about the managerial ability is updated if the manager innovates and the wage is set for the second period accordingly. Our model predicts that the rate of innovation would be higher under a more democratic governance structure and relatively low product market competition. Using a panel dataset from 1990s, compiled from Aghion et al.(2013b) and Gompers, Ishii,and Metrick (2003), containing time-varying information of patent citations, R&D, product market competition, and Governance index, we show that there is a robust association between innovation and the quality of governance and this relationship is strongest in industries with relatively low competition.
    Keywords: Governance, Compeition
    JEL: G3
    Date: 2015–01–15

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