nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2016‒02‒23
eight papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Comments on the Impact of Knowledge on Economic Growth across the Regions of the Russian Federation By Jens K. Perret
  2. The Comparative Economics of Knowledge Economy in Africa: Policy Benchmarks, Syndromes and Implications By Simplice Asongu
  3. Venture Capital and Knowledge Transfer By Dessí, Roberta; Yin, Nina
  4. The incremental effect of education on corruption: evidence of synergy from lifelong learning By Asongu, Simplice; Nwachukwu, Jacinta
  5. Essay on the State of Research and Innovation in France and the European Union By Antoine Kornprobst
  6. Determinants of innovation in Croatian SMEs: Comparison of service and manufacturing firms By Bozic, Ljiljana; Mohnen, Pierre
  7. Research and Development as an Initiator of Fixed Capital Investment By Andrin Spescha; Martin Wörter
  8. Policy Design & Delivery: Undermanaged Human Resources as Determinants of India’s High Growth & Low Productivity By Sapovadia, Vrajlal; Patel, Sweta; Patel, Akash

  1. By: Jens K. Perret (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: Using a basic growth accounting approach it is deduced how far the regional knowledge infrastructure plays any significant role across the regions of the Russian Federation. Aside from aspects of the size of the regional innovation system, like the number of researchers and students, it is discussed in how far the inflow and outflow of knowledge plays a role in determining the economic growth. The study shows thereby that while the Russian growth dynamics are indeed driven by the exploitation of natural resources, foremost of oil and gas, a significant part of Russian growth is due to its innovation system. This shows that innovation oriented growth politics as promoted by former president Dmitry Medvedev do have a solid foundation to be built on.
    Keywords: Economic Growth, Russian Federation, Knowledge, Innovations
    JEL: O31 P25
    Date: 2015–04
  2. By: Simplice Asongu (Yaoundé/Cameroun)
    Abstract: The paper complements the scarce literature on knowledge economy (KE) in Africa by comparing KE dynamics within Africa in order to assess best and worst performers based on fundamental characteristics of the continent’s development. The five dimensions of the World Bank’s knowledge economy index (KEI) are employed, notably: education, information and communication technology, innovation and, economic incentives and institutional regime. The empirical evidence is based on a five-step novel approach with data from 53 African countries for the period 1996-2010. Limitations of the beta catch-up approach are complemented with the sigma convergence strategy. Based on the determined fundamental characteristics, computed dynamic benchmarks, policy syndromes and syndrome free scenarios we establish that: Landlocked, Low-income, Conflict-affected, sub-Saharan African, Non-oil-exporting and French civil law countries are generally more predisposed to lower levels of KE whereas; English common-law, Notlandlocked, Conflict-free, North African and middle-income countries are characteristics that predispose certain nations to higher KE. Broad and specific policy implications are discussed in detail.
    Keywords: Knowledge economy; Benchmarks; Policy syndromes; Catch-up; Africa
    JEL: O10 O30 O38 O55 O57
    Date: 2015–06
  3. By: Dessí, Roberta; Yin, Nina
    Abstract: This paper explores a new role for venture capitalists, as knowledge intermediaries. A venture capital investor can communicate valuable knowledge to an entrepreneur, facilitating innovation. The venture capitalist can also communicate the entrepreneur's innovative knowledge to other portfolio companies. We study the costs and benefits of these two forms of knowledge transfer, and their implications for investment, innovation, and product market competition. The model also sheds light on the choice between venture capital and other forms of finance, and the determinants of the decision to seek patent protection for innovations. Our analysis provides a rationale for the use of contingencies (specifically, patent approval) in VC contracts documented by Kaplan and Stromberg (2003), and for recent evidence on patterns of syndication among venture capitalists.
    Keywords: competition; contracts; innovation; knowledge intermediaries; patents; venture capital
    JEL: D82 D86 G24 L22
    Date: 2015–02
  4. By: Asongu, Simplice; Nwachukwu, Jacinta
    Abstract: Education as a tool in the fight against corruption has been subject to much debate in academic and policy making circles. This note extends what we know on this nexus in a threefold manner: namely, in terms of: incremental, lifelong learning and synergy effects. Four main findings are established. First, education is a powerful tool in the fight against corruption. Second, there is evidence of an incremental effect in the transition from secondary to tertiary education. Third, lifelong learning defined as knowledge acquired during primary, secondary and tertiary education negatively affects corruption. Fourth, there is evidence of a ‘synergy effect’ because the impact of lifelong learning is higher than the combined effects of various educational levels. The empirical evidence is based on 53 African countries for the period 1996-2010. Two main policy implications are derived. First, encouraging education through the tertiary level enhances the fight against corruption. Second, the drive towards a knowledge economy by means of lifelong learning has ‘corruption mitigating’ benefits.
    Keywords: Lifelong learning; Corruption; Development; Africa
    JEL: I20 I28 K42 O10 O55
    Date: 2015
  5. By: Antoine Kornprobst (Centre d'Economie de la Sorbonne and Labex ReFi)
    Abstract: Innovation in the economy is an important engine of growth and no economy, whatever its complexity and degree of advancement, whether it is based on industry, agriculture, high tech or the providing of services, can be truly healthy without innovating actors within it. The aim of this work, done by an applied mathematician working in finance, not by an economist or a lawyer, isn't to provide an exhaustive view of the all the mechanisms in France and in Europe that aim at fostering innovation in the economy and to offer solutions for removing all the roadblocks that still hinder innovation; indeed such a study would go far beyond the scope of this study. What I modestly attempted to achieve in this study was firstly to draw a panorama of what is working and what needs to perfected as far as innovation is concerned in France and Europe, then secondly to offer some solutions and personal thoughts to boost innovation
    Keywords: Law and Economics; Financial Markets; Financial institutions; Innovation; Start-up creation
    JEL: K1 K2 G1 G2 O31 O32 O38
    Date: 2016–01
  6. By: Bozic, Ljiljana (Institute of Economics, Zagreb); Mohnen, Pierre (UNU-MERIT, SBE, Maastricht University)
    Abstract: In this paper we focus on SMEs in Croatia operating in the manufacturing and services sectors and seek to compare them in terms of their involvement in innovation activities, the factors that determine their decision to innovate in general and in four types of innovations in particular: product/service, process, organisational and marketing innovations. The analysis relies on the Croatian Community Innovation Survey 2010 (CIS 2010) data. To find out whether innovations have a different pattern of drivers in manufacturing and in services, we estimate the probit and multivariate probit models separately on these two groups of firms. The findings reveal that despite some differences, service and manufacturing SMEs are not that different from one another when it comes to innovation activities. Service SMEs are somewhat less likely to introduce technological innovations, but manufacturing and service SMEs do not significantly differ from each other when it comes to non-technological innovations. One noteworthy difference between manufacturing and service SMEs is that the latter rely much more than the former on acquired knowledge.
    Keywords: Croatia, innovation, services, manufacturing, SME, multivariate probit
    JEL: O31 L80
    Date: 2016–02–16
  7. By: Andrin Spescha (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Martin Wörter (KOF Swiss Economic Institute, ETH Zurich, Switzerland)
    Abstract: This paper investigates the causal relationship between firms’ research and development expenditures (R&D) and their investments into fixed capital. The literature provides two contrasting views in this respect. The first view holds that a firm’s research activity causes, via the creation of inventions, subsequent investment into fixed capital, as the firm needs additional capacities to produce the new goods or services that follow from the inventions. The second view holds that firms’ fixed capital investments cause intensified research activity, as novel capital goods from external suppliers offer the firms’ researchers a wide range of additional technical possibilities of how to build new prototypes. Using panel data of Swiss firms ranging from 1990 to 2014, the paper applies, contrasting the existing empirical literature only based on VARs, a 2SLS approach to uncover the direction of causality between R&D and fixed capital investment. In order to obtain exogenous instruments, the paper exploits shocks to i) technological opportunities and ii) sales from capital goods suppliers. Results show a one-way causal relationship; we find evidence for that firms’ R&D expenditures cause fixed capital investments, but we do not find evidence for the reverse effect. When additionally looking at innovation performance, R&D activities turn out to be complementary to fixed capital investment, in the sense that they markedly increase the expected return on investment. Thus, increasing research activity may not just be valuable for long-run economic growth but, via investment, may also give the economy a head start in times of a prolonged economic downturn.
    Keywords: Investment, Research and Development, Invention, Technological Opportunities, Complementarity
    JEL: O33
    Date: 2016–02
  8. By: Sapovadia, Vrajlal; Patel, Sweta; Patel, Akash
    Abstract: India’s series of economic reforms since 1991 have accelerated economic growth but not productivity at same pace. Productivity in manufacturing sector in the last two decades remains stagnant, but nobody sincerely has bothered to measure and improve. There are several ways & means to measure productivity, defined differently by different scholars. It is a fact that even using same data, different methodology will give different numbers of productivity. But whatsoever methodology we use to measure productivity, India’s productivity is quite low compared to USA & other BRIC nations. As per world management survey, 1% increases of management score increases 6% productivity. Comparatively there is not much empirical study in India to understand employee efficiency. And hence there are no concentrated efforts to take remedial measures to make them more effective and efficient using study of health economics, human psychology, education, cognitive & non-cognitive capabilities and its effect on skill formation. India faces challenges of poor governance, corruption, slow decision making process, lack of accountability, low & obsolete management skill. This research aims at investigating reasons of low productivity specifically in the manufacture sector due to human resource management of industry & the government. The industry to some extent look at their own human resources as part of employee performance management, but this research aims to investigate; does the government policy affect productivity? Indian business environment is said to be heavily influenced by various government interfere and red-tapism. A business has to pass through dozens of windows varies in one state to another. The government policies cobweb is cumbersome and puzzle. The government policy is what is inferred by the person who implements it. The policy is implemented through various stages and each stage has its own nuances. It is the people on ground that understands the policy and implement which determine the fate of the policy. The policy is framed at high level after detailed study of the relevant factors and with full knowledge. But on the ground those who are responsible to implement such policy at micro level hardly understand the rationale and have same self-drive to implement the policy. Corruption, lack of accountability, political influence and lack of managerial & leadership skill of the government employees adds hurdle in safe delivery of the policy.
    Keywords: India, Productivity, Growth
    JEL: A1 M2 M20
    Date: 2015

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