nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2019‒12‒09
five papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Intangible Capital and Labour Productivity Growth: A Review of the Literature By Roth, Felix
  2. The impact of board directors on the innovation of new ventures By Christopher F. Baum; Hans Lööf; Andreas Stephan; Ingrid Viklund-Ros
  3. Undergraduate students’ economic literacy, knowledge of the country’s economic performance and opinions regarding appropriate economic policies By João Martins; Linda G. Veiga
  4. The complexity of the intangible digital economy: an agent-based model By Bertani, Filippo; Ponta, Linda; Raberto, Marco; Teglio, Andrea; Cincotti, Silvano
  5. Negotiation under the curse of knowledge By Pierrot, Thibaud

  1. By: Roth, Felix
    Abstract: This paper surveys a wide range of studies on the impact of capital investment in intangible assets on labour productivity growth and highlights their main findings on. Surveying the literature at the country, industry and firm level, this paper finds evidence of the increasing importance of business investment in intangible assets in explaining the dynamics of labour productivity growth. Moreover, the findings reported in the literature surveyed suggest that in order to fully reap the benefits of investment in information and communication technology (ICT) and artificial intelligence (AI), it is essential for businesses to make complementary investment in intangible assets. In addition, the literature on the drivers of business capital investment in intangibles highlights the importance of having in place a well-endowed infrastructure of public intangibles. Judging from the wide range of economic literature surveyed, this paper finds that the contemporary economic debate now broadly acknowledges the importance of intangibles for the transformation of developed economies towards becoming fully-fledged knowledge economies.
    Keywords: Intangible Capital,Labour Productivity Growth,Total Factor Productivity Growth,Information and Communication Technology,Artificial Intelligence,European Union
    Date: 2019
  2. By: Christopher F. Baum (Boston College; DIW Berlin; CESIS, KTH Royal Institute of Technology); Hans Lööf (CESIS, KTH Royal Institute of Technology); Andreas Stephan (Jönköping International Business School; DIW Berlin); Ingrid Viklund-Ros (CESIS, KTH Royal Institute of Technology)
    Abstract: This paper studies the impact of knowledge spillovers on innovation in newly founded firms. Analyzing patent statistics for 12 cohorts of about 7,600 Swedish startups, we apply a recursive bivariate probit model to identify a causal impact from board members of existing innovators on potential new innovators. The results show that new entrants with members of the board linked to innovative firms are more likely to apply for patents than other young entrepreneurial firms. The spillover effect is even stronger when we substitute trademarks for patents as an innovation indicator.
    Keywords: start-ups, board of directors, knowledge diffusion, innovation, endogeneity
    JEL: C36 D24 M13 L21 O33
    Date: 2019–11–29
  3. By: João Martins (NIPE and Department of Economics, University of Minho; and UNU-EGOV); Linda G. Veiga (NIPE and Department of Economics, University of Minho; and UNU-EGOV)
    Abstract: Based on a survey of more than 400 students at the University of Minho in Portugal, we analyse the relationship of (1) basic economic literacy, (2) knowledge of the country’s economic performance, and (3) opinions regarding appropriate economic policies, with previous economic training, and other socioeconomic variables. The results clearly show that economic training has a positive influence on students’ economic literacy and knowledge of the country’s current economic data and conditions. It also influences their assessment of how economic policy should be conducted. We argue that more training in Economics, both at the high school and university levels, is necessary to improve citizens’ knowledge for making personal and social decisions on economic issues. This recommendation is particularly relevant for countries that recently underwent deep economic crises.
    Keywords: economic literacy, knowledge of the country’s economic performance, opinion on economic policies, training in Economics
    Date: 2019
  4. By: Bertani, Filippo; Ponta, Linda; Raberto, Marco; Teglio, Andrea; Cincotti, Silvano
    Abstract: During the last decades, we have witnessed a strong development of intangible digital technologies. Software, artificial intelligence and algorithms are increasingly affecting both production systems and our lives; economists have started to figure out the long-run complex economic implications of this new technological wave. In this paper, we address this question through the agent-based modelling approach. In particular, we enrich the macroeconomic model Eurace with the concept of intangible digital technology and investigate its effects both at the micro and macro level. Results show the emergence of the relevant stylized facts observed in the business domain, such as increasing returns, winner-take-most phenomena and market lock-in. At the macro level, our main finding is an increasing unemployment level, since the sizeable decrease of the employment rate in the mass-production system, provided by the higher productivity of digital assets, is usually not counterbalanced by the new jobs created in the digital sector.
    Keywords: Intangible assets, Digital transformation, Technological unemployment, Agent-based economics
    JEL: C63 D24 O33
    Date: 2019–11–21
  5. By: Pierrot, Thibaud
    Abstract: An individual is affected by the curse of knowledge when he fails to appreciate the viewpoint of a lesser-informed agent. In contrast to a rational person, the cursed individual behaves as if part of his private information were common knowledge. This systematic cognitive bias alters many predictions derived from game theory which involve an asymmetry of information between the players. We investigate in this article how the curse of knowledge modifies individual behaviours in negotiation situations. We report the results of a laboratory experiment that was designed to isolate the effect of the curse of knowledge by varying the information available to the players ceteris paribus. Our analysis of the expectations and choices of subjects playing the ultimatum game in different information settings indicates that the curse of knowledge can lead to an increase of impasses in the negotiation and partially explains empirically observed phenomenons such as abnormally high rates of bargaining failures. Unlike previous behavioural research, that is mostly based on motivated beliefs and actions, this work provides a purely nonstrategic explanation for negotiation impasses observed in many real life situations.
    Keywords: curse of knowledge,hindsight bias,negotiation,experiments
    JEL: C91 D80 D82 D83 D84
    Date: 2019

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