nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2015‒12‒08
eight papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. R & D Sector Outsourcing, Human Capital Formation and Growth in the Context of Developed versus Developing Economies By Sujata Basu
  2. Intellectual Property and Innovation in Information and Communication Technology (ICT) By Stefano Comino; Fabio Maria Manenti
  3. The Useful Application of Knowledge: An Introduction. By Antonelli, Cristiano; David, Paul
  4. Innovation, Product-Cycle Trade, and the Cross-Country Distribution of Income By Scott French
  5. Science Research and Knowledge Creation in Indian Universities: Theoretical Perspectives and Econometric Evidence By Sabyasachi Saha; Amit Shovon Ray
  6. Intergenerational Mobility, Human Capital Composition and Distance to Technological Frontier By Sujata Basu
  7. Research and Technology Organisations and Smart Specialisation By David CHARLES; Katerina CIAMPI STANCOVA
  8. Cultural Economics and Intellectual Property: Tensions and Challenges for the Region By Miranda Forsyth

  1. By: Sujata Basu (Centre for International Trade and Development,Jawaharlal Nehru University)
    Abstract: A skill-biased endogenous growth has model has been considered where Research and Development (R & D) producer of the advanced economy outsource its R & D activity to a relatively technologically backward economy. R & D producer of the advanced economy endogenously determines the equilibrium proportion of R & D activity which takes an intermediate value. An advanced economy relies on the innovation activity for its technology improvement. Whereas a backward economy depends on both the imitation and the innovation activities - innovation being more skilled-intensive than imitation. This paper theoretically examines the impact of R & D outsourcing from an economy which is in the innovation-only regime to an economy which is in the imitation-innovation regime. It shows that dependence on the imitation activities rises and as a consequence of which proportion of skilled human capital falls and both skilled and unskilled human capital shift away from the innovation to the imitation activities in the backward economy. This also leads to a higher wage rate of both skilled and unskilled human capital in the backward economy. As a result proportion of outsourcing from advanced economy to backward economy falls. However, growth rate of the backward economy initially rises and eventually declines as time progresses. In the long run backward economy will get into a low equilibrium trap and gap from the world technology frontier widens.
  2. By: Stefano Comino (University of Udine); Fabio Maria Manenti (University of Padua)
    Abstract: The aim of this study is to provide a structured review of the role of IPR in fostering innovation and economic growth in the European ICT sector. Typically IPR analysis of industries focuses on patents. In practice, however, IPR strategies are developed combining the use of different IP rights. The scope of analysis considers this and looks at the joint use of patents, trademarks and industrial designs, each protecting a different type of knowledge-based asset. Based on these characteristics, the focus of the research is to provide an overview of the mechanisms typically employed in order to appropriate the returns from R&D investments. For each formal IPR, we briefly review the main contributions to the economic literature, both theoretical and empirical, on the rationale for its existence and the effects it generates on firms’ behaviour and market outcomes. We then highlight the most important emerging issues. In the final section of the study, we focus on the software industry.
    Keywords: Patents, copyright, trademarks, information and communication technologies, patent thickets, open source, software, mobile applications
    JEL: L11 L24 L96 O25 O31 O32 O34 O38 O52
    Date: 2015–11
  3. By: Antonelli, Cristiano; David, Paul (University of Turin)
    Date: 2015–10
  4. By: Scott French (University of New South Wales)
    Abstract: This paper develops a quantitative, multi-country model of endogenous growth, international trade, and international knowledge flows in order to understand how access to both foreign products and technologies, together, influences innovation incentives and the world distribution of income. An endogenous product cycle arises in equilibrium, in which innovative countries engage in both horizontal and vertical research, while others far from the technological frontier specialize in learning about and applying research previously conducted abroad. The effect of trade barriers on the level and dispersion of income across countries is found to be larger than would be predicted by a static trade model, and the effect of access to international knowledge flows is also quantitatively important and dependent on trade flows. For instance, halving the cost of learning reduces income dispersion by 23%, while doing so after eliminating asymmetric international trade barriers reduces income dispersion by only 10%.
    Date: 2015
  5. By: Sabyasachi Saha (Research and Information System for Developing Countries, Delhi); Amit Shovon Ray (Centre for International Trade and Development,Jawaharlal Nehru University)
    Abstract: In this paper, we present an economic analysis of science research and knowledge creation in Indian universities. We posit that faculty’s research effort is an outcome of her optimum time allocation decision, which in turn shapes knowledge creation in universities. Accordingly, the present paper has a two-fold objective: (1) to develop a theoretical model of research effort by academic scientists in India, and (2) to estimate the research production function that transforms research effort into knowledge outputs controlling for various other factors, using tools of applied econometrics. We establish, theoretically as well as empirically, that contrary to the fairly well accepted proposition of declining research effort/productivity over a scientist’s life cycle in the western world, Indian academic scientists, ceteris paribus, tend to devote a larger share of their time to research and produce larger volumes of research output over their lifetime.
  6. By: Sujata Basu (Centre for International Trade and Development,Jawaharlal Nehru University)
    Abstract: An endogenous skilled biased growth model has been considered to show that along the growth path wage gap widened and both upward and downward mobility fall. This implies that education becomes more correlated with initial conditions and less related with the cognitive ability. Growth occurs through the twin channels of technology - imitating from the world technology frontier and innovating on its own technology level - innovation being more skilled-intensive than imitation. An imperfect capital market has been considered where individual's education decision depends on the cognitive ability as well as on the parental income. Moreover, it is shown that growth enhancing education policy leads to absolute convergence of all the economies to the world technology frontier. In the imitation-innovation regime, life time utility gap within skilled as well as unskilled human capital rise due to parental income differences. Furthermore, life time utility gap within skilled human capital rises due to cognitive ability differences.
  7. By: David CHARLES (University of Lincoln); Katerina CIAMPI STANCOVA (European Commission – JRC - IPTS)
    Abstract: Research and Technology Organisations (RTOs) have developed in many European countries at both national and regional levels to assist in the support of local industry, often around specific industrial technologies or sectors. With a core responsibility for technological upgrading they play a key role in regional and national innovation systems. Yet there is great variety in the form and mission of such RTOs, especially in terms of the degree of regional alignment, and whilst some regions are relatively well endowed with multiple RTOs, others are reliant on national RTOs in other regions or even other countries. These geographical challenges are also compounded by changes in the funding of RTOs with a shift to greater reliance on non-government funding and the search for funds from international sources such as global firms or Horizon 2020 projects. So whilst regions may see RTOs as critical regional assets, the RTOs may have a more nuanced attitude as their client base extends beyond national boundaries and they search for new sources of revenue. RTOs have an important role to play in smart specialisation (S3) though and three specific roles have been identified here. First, many RTOs have a policy role and have capabilities to identify industry needs and technological opportunities as a key input into the entrepreneurial discovery process. Second, RTOs, as increasingly international organisations, can facilitate the access to global knowledge for regional firms through their networks and research collaborations. Third RTOs often have a central role in the development of particular cluster groupings through their specialisation around core technologies, and as such can be a central player in the development of such clusters. But all three of these roles involve potential challenges and difficulties as the interests of the RTOs do not necessarily align with the needs of the region. The case studies in this report on RTOs in Spain, Finland, Italy, and the UK illustrate the variety of RTOs and the complexities of their relationships with regional hosts, but also some of the initiatives that are developing to support smart specialisation.
    Keywords: smart specialisation, research and technology organisations, regional innovation, research and innovation
    Date: 2015–11
  8. By: Miranda Forsyth
    Abstract: The Pacific islands region is currently experiencing an intensification of interest in culture as an enabler, rather than an inhibitor, of development. The emerging field of cultural economics seeks to chart ways in which culture can lead to both economic development and also to other goals, such as positive social relationships, community cohesion and maintenance and enjoyment of cultural heritage. However, bringing together these different range of goals at times involves tensions, often manifested in differences between individual autonomy and family and community obligations, generational focus and clashes of cultural logics. This paper investigates these tensions through the lens of intellectual property, an area where competing ideologies and perspectives of entitlement often come head to head. It identifies and reflects upon four areas of tension that will have to be navigated as the region experiments with both global models of intellectual property and national and local regulatory mechanisms.
    Keywords: cultural economics;intellectual property;traditional knowledge;Pacific islands
    Date: 2015–03–28

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