nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2017‒06‒18
four papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Founders f human capital and external knowledge sourcing: An absorptive capacity perspective for innovative start-ups By Masatoshi Kato
  2. Effect of Intellectual Property Policy on the Speed of Technological Advancement By Ivan D. Breslavsky
  3. A Two-Sector Model of Creative Capital Driven Regional Economic Growth By Batabyal, Amitrajeet; Nijkamp, Peter
  4. The short-run effects of Knowledge intensive greenfield FDI on new domestic entry By Sara Amoroso; Bettina Mueller

  1. By: Masatoshi Kato (School of Economics, Kwansei Gakuin University)
    Abstract: This study explores the role of founders f human capital in determining the external knowledge sourcing (licensing-in and joint R&D) of a firm during the start-up period using panel data drawn from original questionnaire surveys conducted in Japan. The results of a probit model with an endogenous regressor show that firms managed by founders with a high level of specific human capital, measured as prior work experience in a related field or as technological experience, tend to engage in external knowledge sourcing because of their absorptive capacity. The findings indicate that this type of human capital also promotes R&D investment. Contrariwise, this study finds that firms managed by founders with a high level of general human capital, measured as educational attainment, tend to invest more in R&D as an absorptive capacity-building activity, which may promote external knowledge sourcing. The implications of these findings are discussed from the perspective of economic policy.
    Keywords: Start-up, Founder, General human capital, Specific human capital, R&D investment, External knowledge sourcing.
    JEL: M13 L26 O32
    Date: 2017–06
  2. By: Ivan D. Breslavsky
    Abstract: In this paper, the agent-based modeling is employed to model the effect of intellectual property policy at the speed of technological advancement. Every agent has inborn preferences towards investing their capital into independent technological development, innovation appropriation, and production. The relative cost of appropriation compared to independent development is chosen as a measure of strictness of intellectual property protection. We vary this parameter and look at the performance of agents with different preferences and overall technological progress. In general, it is found that in the specific setting considered with stronger intellectual property protection leads to faster progress.
    Date: 2017–06
  3. By: Batabyal, Amitrajeet; Nijkamp, Peter
    Abstract: We study aspects of economic growth in a region that is creative in the sense of Richard Florida. We model creativity by supposing that the region under study has two sectors. The first sector uses physical capital {K(t)} and trained workers {A(t)W(t)} to produce creative capital {R(t)}. The second sector uses physical and creative capital to produce a final consumption good {Q(t)}. In this setting, we accomplish four tasks. First, we derive the equations of motion for physical capital per trained worker (k) and creative capital per trained worker (r). Second, we find combinations of k and r for which k ̇=r ̇=0. Third, we investigate whether the economy of our creative region has a balanced growth path (BGP). Finally, assuming that our region is initially on a BGP, we study the impact of a permanent increase in the savings rate (s) on the trajectory of output per worker.
    Keywords: Balanced Growth Path, Consumption Good, Creative Capital, Creative Region, Economic Growth
    JEL: O41 R11
    Date: 2017–05–25
  4. By: Sara Amoroso (European Commission - JRC); Bettina Mueller (Centre for European Economic Research (ZEW))
    Abstract: Existing evidence on the impact of foreign direct investment on domestic economies remains ambiguous. Positive technology spillovers of foreign investment may be outweighed by negative crowding out effect due to increased competition. In this paper, we employ a unique country/sector-level data set to investigate the impact of what is considered the best type of foreign investment greenfield knowledge intensive FDI on domestic entry. Our results suggest that, in the short run, this type of FDI is positively related to the entry rate in the host country, if the domestic sector is either dynamic, or highly R&D intensive. These sectors may be respectively characterized by lower entry costs, which encourage a trial and error learning business approach, and by a higher level of absorptive capacity which increases the chance of technology transfer.
    Keywords: foreign direct investments; knowlwdge spillovers; new firm entry
    Date: 2017–04

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