nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2017‒05‒07
nine papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Regional Innovation Systems and Global Flows of Knowledge By Martin, Roman; Wiig Aslesen, Heidi; Grillitsch, Markus; Herstad, Sverre
  2. Digital Knowledge Generation and the Appropriability Trade-Off. By Antonelli, Cristiano
  3. From the Economics of Information to the Economics of Knowledge. Length: pages 39 By Antonelli, Cristiano
  4. Knowledge externalities and firm heterogeneity: Effects on high and low growth firms By Grillitsch, Markus; Nilsson, Magnus
  5. The Creative Response and the Endogenous Dynamics of Pecuniary Knowledge Externalities: An Agent Based Simulation Model. By Antonelli, Cristiano; Ferraris, Gianluigi
  6. The Organization of Knowledge in Multinational Firms By Gumpert, Anna
  7. Fiscal foundations of inflation: Imperfect knowledge By Stefano Eusepi; Bruce Preston
  8. Capital Income Tax, Linear R&D Technology, and Economic Growth By Tenryu, Yohei
  9. Sticky-Wage Models and Knowledge Capital: A Note By Kevin x.d. Huang; Munechika Katayama; Mototsugu Shintani; Takayuki Tsuruga

  1. By: Martin, Roman (University of Gothenburg); Wiig Aslesen, Heidi (BI Norwegian Business School); Grillitsch, Markus (CIRCLE, Lund University); Herstad, Sverre (Inland Norway University of Applied Sciences)
    Abstract: The literature on regional innovation systems emphasizes the role of the region as locus for interactive learning and knowledge exchange, stressing the importance of (geographical) proximity for innovation (Asheim and Gertler 2005). Even though the importance of extra-regional knowledge is widely acknowledged (Trippl et al. 2015), there has been only little emphasis on the particular role and the nature of global knowledge flows. The aim of this chapter is to explore the differentiated nature of global knowledge flows in regional innovation systems. We provide an overview of the different ways firms can gain access to global knowledge sources. Identified knowledge sourcing channels include international R&D collaborations, foreign direct investments, personally embedded relationships, international mobility of skilled labour, virtual communities and online platforms, and the participation in temporary clusters such as fairs, exhibitions, and conferences (Maskell et al. 2006, Aslesen and Sardo 2016). Depending on regional innovation system preconditions, firms use and combine different knowledge sourcing channels to access global knowledge. Firms in organisationally thick and diversified regional innovation systems have a geographical advantage in accessing knowledge globally, but even firms in peripheral areas can exchange knowledge worldwide, due to improved means of transport and communication at distance. Furthermore, not only multinational companies that are dominated by analytical or synthetic knowledge bases, but even small and medium sized enterprises in symbolic industries are often deeply involved in global knowledge sourcing activities. We illustrate our arguments with interview data collected among New Media firms in southern Sweden and in the Oslo Region in Norway.
    Keywords: regional innovation systems; globalisation of innovation; knowledge sourcing; new media
    JEL: L82 L86 O19 O33
    Date: 2017–04–27
  2. By: Antonelli, Cristiano (University of Turin)
    Abstract: The introduction of information and communication technologies (ICT) has changed in depth the organization of the generation of knowledge reducing significantly knowledge absorption cost and improving knowledge interactions. The digital generation of knowledge relies on the systematic access and use of the stock of quasi-public knowledge. ICT enable to reconsider the knowledge appropriability trade-off as it helps to better appreciate the positive role of knowledge spillovers in the recombinant generation of new knowledge, next to the well-known negative effects of the limited appropriability of knowledge on revenues and hence incentives to innovate. This new analytical framework calls for an augmented role of telecommunications policy that should take into account the positive effects of knowledge connectivity on the generation of knowledge.
    Date: 2017–03
  3. By: Antonelli, Cristiano (University of Turin)
    Date: 2017–03
  4. By: Grillitsch, Markus (CIRCLE, Lund University); Nilsson, Magnus (CIRCLE, Lund University)
    Abstract: Knowledge externalities affect high and low growth firms differently. The paper develops two theoretical arguments. The knowledge equilibrium argument postulates that knowledge externalities weaken high growth firms for the benefit of low growth firms until performance differences vanish. The knowledge competition argument claims that high growth firms are in a better position to identify, attract, and integrate knowledge, thereby benefiting more from knowledge externalities than low growth firms. Based on 188,936 observations of 32,736 Swedish firms from 2004 to 2011, it is analyzed whether knowledge centers enable high growth firms to surge ahead or low growth firms to catch up.
    Keywords: knowledge spillovers; externalities; firm growth; competitiveness; core-periphery
    JEL: O18 O30 P48 R10 R12
    Date: 2017–04–27
  5. By: Antonelli, Cristiano; Ferraris, Gianluigi (University of Turin)
    Abstract: The paper elaborates an agent based simulation model (ABM) to explore the endogenous long-term dynamics of knowledge externalities. ABMs, as a form of artificial cliometrics, allow the analysis of the effects of the reactivity of firms caught in out-of-equilibrium conditions conditional on the levels of endogenous knowledge externalities stemming from the levels of knowledge connectivity of the system. The simulation results confirm the powerful effects of endogenous knowledge externalities. At the micro-level, the reactions of firms caught in out-ofequilibrium conditions yield successful effects in the form of productivity enhancing innovations, only in the presence of high levels of knowledge connectivity and strong pecuniary knowledge externalities. At the meso-level, the introduction of innovations changes the structural characteristics of the system in terms of knowledge connectivity that affect the availability of knowledge externalities. Endogenous centrifugal and centripetal forces continually reshape the structure of the system and its knowledge connectivity. At the macro system level, an out-of-equilibrium process leads to a step-wise increase in productivity combined with non-linear patterns of output growth characterized by significant oscillations typical of the long waves in Schumpeterian business cycles.
    Date: 2017–03
  6. By: Gumpert, Anna (University of Munich)
    Abstract: This paper provides the first in-depth study of the organization of knowledge in multinational firms. In the theory, knowledge is a costly input for firms that they can acquire at their headquarters or their production plants. Communication costs impede the access of the plants to headquarter knowledge. The model shows that multinational firms systematically acquire more knowledge at both their foreign and domestic plants than non-multinationals if their foreign plants face higher communication costs with headquarters than their domestic plants. This theoretical prediction helps understand why multinational firms pay higher wages to workers than non-multinational firms, and why their sales decrease across space. The empirical analyses show that higher communication costs indeed decrease multinational firms\' foreign sales. Consistent with model-specific comparative statics, the decrease is stronger in sectors with less predictable production processes. Novel data on corporate transferees allow shedding light on one tool of multinational firms\' organization of knowledge.
    Keywords: multinational firm; knowledge hierarchy; organization; geography of FDI; multinational wage premium; corporate transferees;
    JEL: D21 D24 F21 F23
    Date: 2017–04–25
  7. By: Stefano Eusepi; Bruce Preston
    Abstract: This paper proposes a theory of the fiscal foundations of inflation based on imperfect knowledge and learning. Because imperfect knowledge breaks Ricardian equivalence the scale and composition of the public debt matter for inflation. High moderate-duration debt generates wealth effects on consumption demand that impairs the intertemporal substitution channel of monetary policy: aggressive monetary policy is required to anchor inflation expectations. Counterfactual experiments, in an estimated medium-scale DSGE model, reveal the US economy would have been substantially more volatile over the Great Inflation and Great Moderation periods, had average debt been consistent with levels currently observed in Italy or Japan.
    Keywords: Monetary and Fiscal Interactions, Learning Dynamics, Expectations Stabilization, Great Moderation, Great Inflation
    JEL: E32 D83 D84
    Date: 2017–05
  8. By: Tenryu, Yohei
    Abstract: This paper shows that, in a R&D-based growth model in which vertical and horizontal innovations occur simultaneously, increasing the capital income tax leads to faster growth. For this result to hold, the production function for both vertical and horizontal innovations must have constant returns to scale.
    Keywords: Endogenous growth, Capital income tax, Vertical innovation, Horizontal Innovation, Scale effect.
    JEL: H20 J22 O31 O40
    Date: 2017–04–22
  9. By: Kevin x.d. Huang (Vanderbilt University); Munechika Katayama (Waseda University); Mototsugu Shintani (University of Tokyo and Vanderbilt University); Takayuki Tsuruga (Kyoto University)
    Abstract: We present a sticky-wage model with two types of labors: while a worker's labor contributes to current production, a researcher's work helps develop new ideas to add to a firm's knowledge capital that enhances its productivity for many periods. The long-lived effect of knowledge capital on productivity is analogous to the long-lasting effect of consumer durables on utility in the sticky-price model of Barsky, House and Kimball (2007). We show, however, that the relative role of the pricing of the two production inputs analogous to consumption durables and nondurables in BHK's sticky-price model is completely switched in our sticky-wage model.
    JEL: E0 C0
    Date: 2017–04–22

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