nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2015‒05‒30
thirteen papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. A Study on Promoting the Use of Intellectual Property by Using the Common Domain for Strengthening the Innovative Fundamentals(in Japanese) By MURATA Takashi; FURUNISHI Makoto; KITAOKA Michiyo
  2. How Do Native and Migrant Workers Contribute to Innovation? A Study on France, Germany and the UK By Fassio, Claudio; Montobbio, Fabio; Venturini, Alessandra
  3. Macro-Economic Models for R&D and Innovation Policies - A Comparison of QUEST, RHOMOLO, GEM-E3 and NEMESIS By Francesco Di Comite; D'Artis Kancs
  4. Providing the right skills to all in China: From “made in China” to “created in China” By Margit Molnar; Vincent Koen
  5. Four Models of Knowledge Diffusion and Growth By Luttmer, Erzo G. J.
  6. The effects of public supports on business R&D: firm-level evidence across EU countries By Aristei, David; Sterlacchini, Alessandro; Venturini, Francesco
  7. Organizational Creativity versus Vested Interests: The Role of Academic Entrepreneurs in the Emergence of Management Education at Oxbridge By Lise Arena; Rani Dang
  8. Assessing China's skills gap and inequalities in education By Margit Molnar; Boqing Wang; Ruidong Gao
  9. Knowledge, Cause and Level of Acceptance of Interest among Muslims in Balochistan By Nadeem, Faiza; Zaman, Nadeem Uz; Shah, Syed Raza Irfan
  10. The Effect of Technology Choice on Specialization and Welfare in a Two-Country Model By Yukiko Sawada
  12. The Market Value of R&D in Weak Innovation Regimes: Evidence from India By Sunil Kanwar; Bronwyn H. Hall

  1. By: MURATA Takashi; FURUNISHI Makoto; KITAOKA Michiyo
    Abstract: Innovation is indispensable for keeping our social and economic activities not only internationally competitive but sustainable. It is, therefore, one of the most important national policies to create the social and economic fundamentals which may create innovation. We call them “innovative fundamentals.” The recent expansion of social networks supported by ICT (information & communications technology) is characterized by the enormous spread of information and creation of a wide range of networks in our society. These significantly affect the way we interact with existing ideas and create new ideas. Responding to such changes, ideas and knowledge attained by research & development (R&D) activities must be flexibly utilized further for the creation of new innovation. However, we rarely expect innovation by using only one type of idea and/or knowledge. Innovation happens only after the use of new ideas stemming from the interaction of various ideas and knowledge. Different types of intellectual property in the common domain must have the force necessary to interact with one another and create the strong fundamentals needed for future innovation. In this paper, we indicate the importance of strengthening intellectual property in the common domain to advance innovation. In addition, we discuss several policy measures based on the idea of the Commons for the creation of such environment that can cause innovation continuously.
    Date: 2015–02
  2. By: Fassio, Claudio (Lund University); Montobbio, Fabio (University of Turin); Venturini, Alessandra (University of Turin)
    Abstract: This paper uses the French and the UK Labour Force Surveys and the German Microcensus to estimate the effects of different components of the labour force on innovation at the sectoral level between 1994 and 2005. The authors focus, in particular, on the contribution of migrant workers. We adopt a production function approach in which we control for the usual determinants of innovation, such as R&D investments, stock of patents and openness to trade. To address possible endogeneity of migrants we implement instrumental variable strategies using both two-stage least squares with external instruments and GMM-SYS with internal ones. In addition we also account for the possible endogeneity of native workers and instrument them accordingly. Our results show that highly-educated migrants have a positive effect on innovation even if the effect is smaller relative to the positive effect of educated natives. Moreover, this positive effect seems to be confined to the high-tech sectors and among highly-educated migrants from other European countries.
    Keywords: innovation, migration, skills, human capital
    JEL: O31 O33 F22 J61
    Date: 2015–05
  3. By: Francesco Di Comite (European Commission – JRC - IPTS); D'Artis Kancs (European Commission – JRC - IPTS)
    Abstract: This report compares the modelling of R&D in four macroeconomic models used by the European Commission for ex-ante policy impact assessment: QUEST, RHOMOLO, GEM-E3 and NEMESIS. Whereas the former three are general equilibrium models, the latter is a reduced form macro-econometric model. QUEST and RHOMOLO are in-house models developed and used within the European Commission, whereas GEM-E3 and NEMESIS are external models of University of Athens and University of Paris, respectively. The report highlights particularly those parts of the models that are relevant to R&D transmission mechanisms and interfaces for implementing policy shocks.
    Keywords: QUEST, RHOMOLO, GEM-E3, NEMESIS, Macro-Economic Models, R&D Policies
    JEL: C68 D24 D58 H50 O31 O32
    Date: 2015–04
  4. By: Margit Molnar; Vincent Koen
    Abstract: China has made impressive strides in education in recent decades, even though the accumulation of human capital has lagged behind that of physical capital. Going forward, access to and quality of education will be key to sustain economic convergence with the most advanced economies and to offset the drag exerted by population ageing. This will require addressing a number of problems. Access to pre-school education is still far from universal. Migrants’ children as well as rural and poor families are still at a major disadvantage at every step of the education ladder. The focus on rote learning and exams remains excessive. More bridges are needed between vocational and general education. Graduating students often struggle to find a job matching their expectations and employers do not always find the requisite skills. Despite a soaring number of Chinese patents, the quality of most patents is still low and innovation output is weak. Reforms are underway to address these problems but further progress is needed in various areas against the backdrop of rapidly evolving market demands and the development of the knowledge economy. Among the priorities are more and better oriented funding of education, giving greater opportunities to children with a socio-economic or physical disadvantage, reducing the role of after-school tutoring, focusing less on memorisation and more on creativity, enhancing the appeal of the teaching profession, improving students’ information on labour market prospects, developing workplace training, making greater use of online education potential, and more effectively nurturing research and innovation. This Working Paper relates to the 2015 OECD Economic Survey of China<P>Donner à tous des compétences adéquates en Chine : Du “fabriqué en Chine” au “créé en Chine”<BR>La Chine a fait ces dernières décennies des progrès impressionnants dans le domaine de l’éducation, même si l’accumulation de capital humain y a été moins rapide que l’accumulation de capital physique. À l’avenir, l’accès à l’éducation et la qualité de celle-ci seront déterminants pour favoriser la convergence économique avec les économies les plus avancées et compenser l’effet du vieillissement de la population. Il faudra pour cela s’atteler à la résolution d’un certain nombre de problèmes. Ainsi, l’accès à l’éducation préscolaire est encore loin d’être universel. À tous les échelons du système éducatif, les enfants de migrants, ainsi que les familles pauvres ou vivant en milieu rural, restent très désavantagés. L'importance donnée à l'apprentissage par coeur et aux examens reste excessive. Il faudrait aussi instaurer des passerelles plus nombreuses entre la formation professionnelle et l'enseignement général. Les étudiants diplômés ont souvent du mal à trouver un emploi correspondant à leurs attentes et les employeurs, pour leur part, ne trouvent pas toujours des candidats ayant les compétences requises. Malgré l'explosion du nombre des brevets chinois, la qualité de la majorité d'entre eux reste faible et les résultats en matière d'innovation sont modestes. Des réformes sont en cours pour s'attaquer à ces problèmes, mais les progrès doivent se poursuivre dans divers domaines, dans un contexte marqué par l'évolution rapide des exigences des marchés et le développement de l'économie de la connaissance. Les mesures à prendre en priorité doivent viser à mieux cibler et à accroître le financement de l'éducation, donner des chances plus importantes aux enfants issus de milieux socio-économiques défavorisés ou handicapés, réduire le rôle du soutien périscolaire, mettre moins l'accent sur la mémorisation et miser davantage sur la créativité, rendre la profession d'enseignant plus attrayante, améliorer l'information des étudiants sur les perspectives offertes par le marché du travail, développer la formation en entreprise, exploiter davantage les possibilités offertes par l'éducation en ligne, et promouvoir de manière plus efficace la recherche et l'innovation. Ce Document de travail a trait à l’Étude économique de l’OCDE de la Chine, 2015 que-chine.htm
    Keywords: human capital, education, innovation, China, vocational training, education inequalities, skill mismatch, migrant children, enfants de migrants, capital humain, formation professionnelle, Chine, inadéquation des compétences, inégalités d'éducation, innovation, éducation
    JEL: H52 I00 I20 I21 I22 I23 I24 I25 I28 J24 O O30 O31
    Date: 2015–05–22
  5. By: Luttmer, Erzo G. J. (Federal Reserve Bank of Minneapolis)
    Abstract: This paper describes how long-run growth emerges in four closely related models that combine individual discovery with some form of social learning. In a large economy, there is a continuum of long-run growth rates and associated stationary distributions when it is possible to learn from individuals in the right tail of the productivity distribution. What happens in the long run depends on initial conditions. Two distinct literatures, one on reaction-diffusion equations, and another on quasi-stationary distributions suggest a unique long-run outcome when the initial productivity distribution has bounded support.
    Keywords: Growth; Knowledge diffusion
    JEL: O33
    Date: 2015–05–26
  6. By: Aristei, David; Sterlacchini, Alessandro; Venturini, Francesco
    Abstract: Using homogenous firm-level data for the largest Member States of the EU over the period 2007-2009, we test whether manufacturing firms receiving R&D public supports (subsidies and/or tax incentives) spent more on R&D. The analysis is performed by means of both non-parametric (Propensity Score Matching) and parametric estimations (OLS and mixed-model system, with the latter accounting for the possible endogeneity of public supports). The hypothesis of full crowding-out of private with public funds (i.e. public support reduced privately-funded R&D expenses) is rejected for all countries, with the partial exception of Spain. However, we do not find evidence for the hypothesis of additionality of R&D subsidies (i.e. direct funding did not raise private R&D). These findings contrast with earlier works and might be due to the period under assessment, which covers the financial turmoil and the subsequent economic downturn. A focused analysis on France suggests that R&D tax credits exerted a positive impact on R&D. Overall, our findings indicate that, albeit they were not expansive, public supports avoided the reduction of firm R&D at the outset of financial crisis.
    Keywords: R&D; subsidies; tax incentives; policy evaluation; EU manufacturing firms
    JEL: C21 D04 O32 O38
    Date: 2015–05–26
  7. By: Lise Arena (University of Nice Sophia Antipolis, France; GREDEG CNRS); Rani Dang (University of Nice Sophia Antipolis, France; GREDEG CNRS; University of Gothenburg, Sweden)
    Abstract: As Amabile rightly put it when considering all the organizations she had studied and worked with, "creativity gets killed much more often than it gets supported" (Amabile, 1998). Organizational creativity is even more likely to be killed when an innovative institutional logic seeks to emerge without a corresponding institution, namely within a conservative institution based on strong vested interests. Embedded in a desire for institutional change, 'change agents' (Weik, 2011), beyond being individually creative have to orchestrate organizational creativity in order to turn their new idea into an institutionalised innovation. Based on this organizational paradox, the aim of this paper is twofold. First, it contributes to the existing literature dealing with entrepreneurial innovation and organizational creativity. In particular, it seeks to outline which kind of managerial practices foster creativity in a particularly conservative and inert environment. Second, it sheds light on an original comparative case study - the role of organizational creativity in the emergence and institutionalisation of Oxford and Cambridge business schools – that has been underexplored before and that relies on primary data. Based on a historical perspective of everyday organizational life and practices, this research emphasises the role of academic entrepreneurs in organizational changes through the legitimatization of organizational creativity.
    Date: 2015–05
  8. By: Margit Molnar; Boqing Wang; Ruidong Gao
    Abstract: In recent years, many tertiary graduates have had difficulties finding a job, while factories have been struggling to recruit workers. Notwithstanding rapidly increasing education attainment, graduates’ skills do not seem to match those demanded by the market. Moreover, structural changes in the economy aggravate the shortage of skills in newly emerging industries. While the problem is widely recognised, empirical studies of the issue are scarce and the skills gap has not been quantified. This paper aims at gaging the skills and knowledge gap of tertiary graduates of universities and vocational colleges across China. It also looks at the employment and wage prospects of graduates with different educational backgrounds. Inequalities in educational opportunities, stemming in particular from the urban-rural divide and to a lesser extent from the social background, shape careers and lives. The best primary and middle schools are located in the biggest cities and until recently children competed for a place at such schools. In third and fourth-tier cities or in rural areas, in contrast, there are fewer choices and thus less chance to get into a “model” high school or a top university. The family background also tends to have an impact on the choice of a school or profession and on future earnings. This paper discusses various aspects of inequalities related to the place of upbringing, family background and geographical area. Micro-level data analysis is complemented by an investigation into inequalities of various aspects of education at the city and county levels. This Working Paper relates to the 2015 OECD Economic Survey of China<P>Évaluation du déficit de qualifications en Chine et inégalités du système éducatif<BR>Depuis quelques années, de nombreux diplômés de l’enseignement supérieur éprouvent des difficultés à trouver un emploi tandis que les usines peinent à recruter de la main-d’oeuvre. En dépit d’un relèvement rapide des niveaux d’instruction, il ne semble pas que les qualifications des diplômés correspondent aux besoins du marché. Qui plus est, les mutations structurelles de l’économie aggravent le déficit de qualifications dans les industries nouvelles qui voient le jour. Si le problème est largement admis, les études empiriques sur le sujet ne sont pas légion et le déficit de qualifications n’a pas été quantifié. Ce document de travail a pour but d’évaluer le déficit de qualifications et de connaissances des diplômés des universités et des instituts professionnels de l’enseignement supérieur en Chine. Il examine également les perspectives d’emploi et de rémunération des diplômés issus de différentes filières de formation. Les vies et les carrières en Chine sont le reflet des inégalités d’accès au système éducatif, qui découlent notamment de la fracture entre les zones urbaines et rurales, mais aussi, dans une moindre mesure, de l’origine sociale. Les meilleurs établissements d’enseignement primaire et secondaire (collèges) se situent dans les plus grandes villes du pays et il y peu de temps encore, la concurrence était âpre pour s’y inscrire. En revanche, dans les villes de troisième et quatrième rangs, ou dans les zones rurales, l’offre est moins abondante et les chances d’intégrer un lycée « modèle » ou une université réputée sont d’autant plus réduites. Le milieu familial tend également à avoir un impact sur le choix d’une école ou d’une profession et sur la rémunération future. Ce document de travail examine ces inégalités sous l’angle du lieu d’éducation, de l’origine familiale et de la zone géographique des élèves. Un examen des inégalités de divers aspects du système éducatif, au niveau des villes et des comtés, complète l’analyse des micro-données. Ce document de travail se rapporte à l’Étude économique de la Chine, OCDE, 2015 que-chine.htm.
    Keywords: skills mismatch, vocational college, educational opportunity, family background, China, government spending, inequality, urban-rural divide, university graduates, fracture entre zones urbaines et rurales, inégalité, dépense publique, Chine, déficit de qualifications, diplômés des universités, instituts professionnels, accès au système éducatif, milieu familial
    JEL: H52 I23 I24 J24
    Date: 2015–05–22
  9. By: Nadeem, Faiza; Zaman, Nadeem Uz; Shah, Syed Raza Irfan
    Abstract: Islam is not just a religion but a life’s complete code – presents economic, social and political systems of its own to guide human in all aspects of life – thus has prohibited interest which is the exploitation to the people and acting like a curse for the whole humanity – due to interest rich is getting richer and poor is getting poorer–affects the borrower and the lender alike. There is no research that throws light on the knowledge, cause and level of acceptance of interest among Muslims; this study thus evaluates the same. The sample size of 100 respondents was chosen to give their opinions against the questionnaire regarding to the issue in stratified sampling of the Muslims living in Quetta, Balochistan. The results clearly indicated that Muslims do have knowledge of prohibition of interest in Islam. The cause behind the acceptance of interest is relying on conventional economic system, being modern and selfish, return on deposits, credit facilities, assurance of guaranteed profit, the risk on investment and time value consideration of money. In order to help in reduction of the level of acceptance of interest the effective corporate governance and the highly ethical economic system are to be needed well-regulated with transparency to guide social lives with the compliance of main tenets of Shariah.
    Keywords: Knowledge, Cause, Level, Acceptance, Interest, Muslims, Balochistan
    JEL: M1
    Date: 2015–05–24
  10. By: Yukiko Sawada (Graduate School of Economics, Osaka University)
    Abstract: This study presents a simple two-country model in which rms in the manufacturing sector can choose a technology level (high or low). We show how trade costs and productivity levels affect technology choices by the rms in each country, where the fixed cost of adopting high technology differs. This depends on the productivity level of the high technology. In particular, if productivity is medium and trade costs are not too low, then a technology gap between the countries arises. In this case, improving the productivity of the high-technology country reduces the welfare level of consumers in the country in which low technology is adopted. To compensate for the welfare loss of the country from the technological improvement, trade costs should be reduced.
    Keywords: Specialization, Technology Choice, Technology Gap
    JEL: F10 F12
    Date: 2015–05
  11. By: M. M. Goel; Suraj Walia
    Abstract: It is widely recognised that higher education promotes social and economic development by enhancing human and technical capabilities of any country like India. It provides an opportunity to critically reflect upon the social, economic, cultural, moral and spiritual issues facing humanity. It contributes to national development through dissemination of specialized knowledge and skills. Indian higher education system has undergone massive expansion since independence in terms of growth, enrolment. Keeping in above backdrop, the present paper is an attempt to analyze the trend in growth and challenges of Indian higher education system in the present era. It is clear from the analysis that there has been considerable improvement in the higher education in India in both quantitative as well as qualitative terms. But issues like access, equity, inclusion, quality, privatization and financing concerning higher education, are very complex and interrelated with political, economical geographical and international dimensions. To develop India as a knowledge hub and to become a prosperous partner in global economy, India has to qualitatively strengthen education in general and higher education with research and development in particular. For providing ROTI (Bread) and employment to the manpower, we need to increase returns on training investment (ROTI). To achieve efficiency and deliver quality education, we certainly need good governance which means to us as SMART (SIMPLE, Moral, Action oriented Responsive and Transparent) administration for every institution at all levels in India. Key words: Knowledge economy, ROTI, Privatization, Financing, SMART &SIMPLE
    Date: 2015–03
  12. By: Sunil Kanwar; Bronwyn H. Hall
    Abstract: We revisit the relationship between market value and innovation in the context of manufacturing firms in a developing country, using Indian data from 2001 through 2010. Surprisingly, we find that financial markets value the R&D investment of Indian firms the same or higher than such investment is valued in developed economies like the US. Using a proxy for the option value of R&D, we find that this accounts for a very small part of the R&D valuation (5% at most). We also find that the market value-R&D relationship does not vary significantly across industry groups, although these results are imprecise.
    JEL: G12 O16 O30
    Date: 2015–05
  13. By: T. Surendra Singh
    Abstract: The main objective of the formal system of education in India is to achieve more academic achievement by the students in the public examination result as Indian schooling system is mainly examination based education. So, general people like to send their wards to the schools, where more academic achievement is found. Because, the student having high division with high percentage of marks has a lot of opportunity at the time of admission, training and vocation purposes. To improve the academic achievement is the need of the hour. It is due to some factors affecting like input, process, and output. The overall academic improvement in an institution leads more and high achievement in the public examination. The present study is trying to check the position of academic achievement at government and private high schools in the state as a whole. Specially, the article tries to study and to find out the reasons of the different academic achievements of students between the government and private high schools in the district of Imphal East of Manipur State during 2009-2011. Moreover, the article also tries to find out some of the suggestive measures for the improvement of high school education in the said district on the basis of (a) findings of the study and (b) the opinion given by the principals of the reputed institutions. Key words: academic achievement, type of schools, and Khurai Assembly Constituency
    Date: 2014–06

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