nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2016‒01‒03
seven papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. R&D as an Investment in Knowledge Based Capital By Link, Albert; Swann, Christopher
  2. External “energy” for regional industrial change: attraction and absorption of non-local knowledge for new path development By Trippl , Michaela; Grillitsch , Markus; Isaksen , Arne
  3. Building people-oriented organizations By van Dierendonck, D.
  4. Venture Capital Principles in the European ICT Ecosystem: How can they help ICT innovation? By Garry A. Gabison
  5. Bargaining in the Absence of Property Rights: An Experiment By Oren Bar-Gill; Christoph Engel
  6. Systemic aspects of R&D policy: Subsidies for R&D collaborations and their effects on private R&D By Engel, Dirk; Rothgang, Michael; Eckl, Verena
  7. Mobility and Entrepreneurship: Evaluating the scope of knowledge-based theories of entrepreneurship By Fredriksen, Lars; Wennberg, Karl; Balachandran, Chanchal

  1. By: Link, Albert (University of North Carolina at Greensboro, Department of Economics); Swann, Christopher (University of North Carolina at Greensboro, Department of Economics)
    Abstract: It is well documented that knowledge based capital (KBC) is a driver of economic growth and development and that knowledge acquired through scientific research and development (R&D) is one important component of KBC. In this paper we examine the importance of R&D to a firm for exploring new business opportunities using information from the AEGIS database. We find that, among other things, human capital measured in terms of the educational background of the firm’s founders is a positive and statistically significant covariate with the importance of R&D. We conclude the paper with public policy recommendations for enhancing the educational component of the human capital resource base of firms.
    Keywords: entrepreneurship; R&D; knowledge based capital; human capital; technology; innovation; AEGIS
    JEL: L25 L26 O31 O33
    Date: 2015–12–22
  2. By: Trippl , Michaela (CIRCLE, Lund University); Grillitsch , Markus (CIRCLE, Lund University); Isaksen , Arne (Department of Working Life and Innovation, University of Agder, Norway)
    Abstract: The role of exogenous sources of new path development has been underplayed in the literature on regional industrial change so far. The aim of this paper is to explore in a conceptual way under which conditions and in what ways non-local knowledge can lead to new path development in different regional innovation systems (RIS). We distinguish between organizationally thick and diversified, thick and specialized and thin RIS and argue that these types vary markedly in their needs for exogenous sources as well as in their capacities to attract and absorb knowledge generated elsewhere. Organisationally thick and diversified RIS have a lower need for exogenous sources but they exhibit strong capacities to attract and absorb non-local knowledge. In contrast, organisationally thick and specialised RIS and organisationally thin RIS have a higher need for exogenous sources but show a lower capacity to attract and absorb knowledge from elsewhere. However, a closer look reveals that these RIS types can increase their attractiveness for non-local knowledge and may benefit from its inflow if they strengthen their absorption capacity. We conclude that new regional industrial path development is less endogenous in nature than commonly thought, and that the attraction and absorption of non-local knowledge should be more included in conceptualisations of new path development.
    Keywords: new path development; regional industrial change; non-local knowledge; regional innovation systems; degree of organizational thickness; specialization; diversity
    JEL: O10 O19 O30 R10
    Date: 2015–12–21
  3. By: van Dierendonck, D.
    Abstract: Within organizations, work and the way work is organized is rapidly changing. Driven by increasing globalization, the virtualization brought on by the internet and the need for constant innovation is increasing the pace of work and our interconnectedness. Within organizations, work and the way work is organized is rapidly changing. It requires a new look at HR practices using a strong people-orientated approach. This inaugural address puts forward some key HR challenges at various interconnected levels. It argues for a holistic focus, broadening the HR-KPIs to include employee flourishing; an organizational culture build on the principles of servant leadership, and a renewed look at HR practices with a strong link to the context outside the organization. This perspective emphasizes the creation of conditions for continuous growth and development of all people within organizations, underlining the importance of an enhanced sense of meaningfulness and social recognition.
    Keywords: Human capital, Globalization, Rhineland model, Humane capitalism, Anglo-Saxon model, Aging workforce, New ways of working, Individualized compensation, Job satisfaction, Commitment, Servant Leadership
    JEL: A14 M12 J28 J62 L20
    Date: 2015–12–18
  4. By: Garry A. Gabison (European Commission – JRC - IPTS)
    Abstract: This report looks at venture capital (VC) funds, their characteristics, and functioning. It specifically focuses on the relationship between VCs and innovation, investigating whether VC funds encourage innovative companies to innovate or whether they successfully predict which companies will innovate more. The report also focuses on the selection process at micro-level. VC funds invest in young and innovative companies and decide where to invest based on imperfect information and signals. The ICT industry has a number of young innovative companies and unsurprisingly VC funds have concentrated their efforts on the ICT industry. In 2013, about 25% of invested funds went into ICT companies even though ICT companies represent less than 6% of all companies. The report then steps back to look at the macro-level. Once they have invested, VC funds use stage financing, monitoring, and exit incentives to re-align their incentives with those of the company receiving the funds. Since they rely on monitoring, VC funds usually prefer to invest in local companies that they can visit regularly. This issue of local investment is seen as a hindrance and EU policymakers have tried to remedy it passing a regulation to facilitate the cross-border funding. The EU has also partly funded the European Investment Fund to further encourage investment and cross-border investment.
    Keywords: venture capital fund, innovation, ICT
    Date: 2015–12
  5. By: Oren Bar-Gill (Harvard Law School); Christoph Engel (Max Planck Institute for Research on Collective Goods, Bonn)
    Abstract: The Coase theorem posits: If [1] property rights are perfect, [2] contracts are enforceable, [3] preferences are common knowledge, and [4] transaction costs are zero, then the initial allocation of property rights only matters for distribution, not for efficiency. In this paper we claim that condition [1] can be dropped and show experimentally that this is also empirically true. This also holds when we frame taking as “stealing”, and when the initial possessor has to work for the good.
    Keywords: Coase theorem, absolute vs. relative right, bargaining, efficiency, distribution, fairness
    Date: 2015–11
  6. By: Engel, Dirk; Rothgang, Michael; Eckl, Verena
    Abstract: The paper analyses how context and time dependent factors determine the impulse of R&D subsidies on firm behavior with respect to private R&D expenditures. Based on data from the German R&D survey, we combine propensity-score matching with a difference-in-difference-estimator in order to measure the causal influence of public direct R&D project funding on firm behavior. Our results indicate that (i) repeated participation in R&D projects on average leads to a higher increase in R&D expenditures than one-time funding; (ii) the aggregate effect of R&D funding on R&D expenditures of business firms is somewhat higher for business and business collaboration projects than for science and business collaboration projects; (iii) R&D expenditures of business firms that cooperate with science show a higher share of external R&D spending. Results of one particular cluster programme indicate that at least the short-term development of R&D does not so much depend on which programme direct R&D project funding is applied to.
    Keywords: R&D,public subsidies,collaboration,policy evaluation
    JEL: C14 C25 H50 O38
    Date: 2015
  7. By: Fredriksen, Lars (Aarhus university); Wennberg, Karl (Institute for Analytical Sociology (IAS) & Department of Management and Engineering Linköping University, Sweden and Ratio Institute); Balachandran, Chanchal (Linköping unievrsity)
    Abstract: Knowledge-based theories of entrepreneurship infer transfer of knowledge from the effect of labor mobility on entrepreneurial entry. Yet, simple selection or situational mechanisms that do not imply knowledge transfer may influence entrepreneurial entry in similar ways. We argue that the extent to which such alternative mechanisms operate, labor mobility predicts entry but not subsequent performance for entrepreneurs. Analyses of matched employee-employer data from Sweden suggest that high rates of geographical and industry mobility increase individuals’ likelihood of entrepreneurial entry but have no effects on their entrepreneurial performance, indicating that the relationship between labor mobility and entrepreneurial entry not necessarily implies knowledge transfer.
    Keywords: Entrepreneurship; Mobility; Knowledge
    JEL: J61 M13 O18
    Date: 2015–12–23

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