nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2019‒02‒25
three papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. The Internationalization of R&D By Ali-Yrkkö, Jyrki; Pajarinen, Mika
  2. Capital Accumulation, Green Paradox, and Stranded Assets: An Endogenous Growth Perspective By Wei Jin; ZhongXiang Zhang
  3. Structural transformation in Africa: New technologies, resurgent entrepreneurship and the revival of manufacturing By Naude, Wim

  1. By: Ali-Yrkkö, Jyrki; Pajarinen, Mika
    Abstract: Abstract The aim of this paper is to broaden the knowledge concerning the development of Finnish firms’ innovation activities. The results show that during 2008–2017 the share of overseas R&D has risen. Currently, 14–25% of Finnish firms’ total R&D are conducted overseas. If Nokia is taken into account, the share of overseas R&D rises to 53–65%. Furthermore, the results suggest that Finnish firms invest approximately Eur 1.8 billion in innovation activities outside the traditional R&D definition.
    Keywords: Research, Development, R&D, Company, BERD, Internationalization, Globalisation
    JEL: O31 O32
    Date: 2019–02–15
  2. By: Wei Jin (Tianjin University, China Academy of Energy, Environmental and Industrial Economics and UNSW Business School); ZhongXiang Zhang (Tianjin University, China Academy of Energy and Environmental and Industrial Economics)
    Abstract: The existing studies on Green Paradox and stranded assets focus on dirty exhaustible assets (fossil fuel reserves) and show that environmental regulations, by changing the costs of dirty inputs relative to clean ones, lead to replacements of the former by the latter and stranding of dirty assets due to perfect substitution. It, in turn, induces acceleration of dirty resource extractions and pollution emissions for fear of dirty assets becoming stranded - the Green Paradox effect. This paper uses an endogenous growth framework to revisit the problem of Green Paradox and stranded assets by taking a new perspective that focuses on capital accumulation with investment irreversibility. We show that if 1) direct irreversibility of investment does not rule out the indirect channel of converting dirty capital goods into clean ones through final goods allocations, and 2) interactions between dirty and clean capital as imperfect substitutes can generate reciprocal effects, then environmental regulation, through directing investment towards clean capital, does not necessarily leads to asset stranding of dirty capital. Accumulation of clean capital with a pollution-saving effect offsets the polluting impact of dirty one and leads to reversed Green Paradox. We further propose an endogenous growth mechanism through which the accumulation of both dirty and clean capital, as well as environmental improvement, can be sustained in the long run without converging to the steady state.
    Keywords: Endogenous Growth, Green Paradox, Stranded Assets, Capital Accumulation, Imperfect Substitution, Investment Irreversibility
    JEL: Q54 Q43 Q32 O13 O44 C61
    Date: 2018–12
  3. By: Naude, Wim (UNU-MERIT, and Maastricht University)
    Abstract: In this paper I argue that manufacturing is still important for structural transformation in Africa. Despite failing to industrialize in the past, there may be a new window of opportunity. This is due to the convergence of new technologies of the Fourth Industrial Revolution (4IR) and a resurgence of start-up entrepreneurship. In this light I (i) show why manufacturing is vital for African economies, (ii) critically analyze the nature and impact, both in terms of opportunities and risks, of the new technologies associated with the 4IR for Africa; (iii) describe the resurgence of tech start-up entrepreneurship in Africa and (iv) call for policy support in the form of complimentary investments and regulations to allow entrepreneurs to utilize opportunities and to minimize threats. The paper show that a new narrative for African structural transformation is possible.
    Keywords: Technology, industry 4.0, entrepreneurship, development, Africa
    JEL: O33 O14 O55 L52 L26
    Date: 2018–11–30

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