nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2020‒04‒27
five papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. The Semicircular Flow of the Data Economy and the Data Sharing Laffer curve By de Pedraza, Pablo; Vollbracht, Ian
  2. Human Capital as Engine of Growth the Role of Knowledge Transfers in Promoting Balanced Growth within and across Countries By Ehrlich, Isaac; Pei, Yun
  3. Complementary Inter-Regional Linkages and Smart Specialization: an Empirical Study on European Regions By Pierre-Alexandre Balland; Ron Boschma
  4. Economic modelling to evaluate Smart Specialisation: an analysis on research and innovation targets in Southern Europe By Javier Barbero; Olga Diukanova; Carlo Gianelle; Simone Salotti; Artur Santoalha
  5. Business visits, technology transfer and productivity growth By Mariacristina Piva; Massimiliano Tani; Marco Vivarelli

  1. By: de Pedraza, Pablo; Vollbracht, Ian
    Abstract: This paper presents a theoretical conceptualization of the data economy that motivates more access to data for scientific research. It defines the semicircular flow of the data economy as analogous to the traditional circular flow of the economy. Knowledge extraction from large, inter-connected data sets displays natural monopoly characteristics, which favours the emergence of oligopolistic data holders that generate and disclose the amount of knowledge that maximizes their profit. If monopoly theory holds, this level of knowledge is below the socially desirable amount because data holders have incentives to maintain their market power. The analogy is further developed to include data leakages, data sharing policies, merit and demerit knowledge, and knowledge injections. It draws a data sharing Laffer curve that defines optimal data sharing as the point where the production of merit knowledge is maximized. The theoretical framework seems to describe many features of the data-intensive economy of today, in which large-scale data holders specialize in extraction of knowledge from the data they hold. Conclusions support the use of policies to enhance data sharing and, or, enhanced user-centric data property rights to facilitate data flows in a manner that would increase merit knowledge generation up to the socially desirable amount.
    Keywords: Big data,Artificial Intelligence,Government
    JEL: H1 O38 P48
    Date: 2020
  2. By: Ehrlich, Isaac (University at Buffalo, SUNY); Pei, Yun (University at Buffalo, SUNY)
    Abstract: Unlike physical capital, human capital has both embodied and disembodied dimensions. It can be perceived of as skill and acquired knowledge, but also as knowledge spillover effects between overlapping generations and across different skill groups within and across countries. We illustrate the roles these characteristics play in the process of economic development; the relation between income growth and income and fertility distributions; and the relevance of human capital in determining the skill distribution of immigrants in a balanced-growth global equilibrium setting. In all three illustrations, knowledge spillover effects play a key role. The analysis offers new insights for understanding the decline in fertility below population replacement rate in many developed countries; the evolution of income and fertility distributions across developing and developed countries; and the often asymmetric effects that endogenous immigration flows and their skill composition exert on the long-term net benefits from immigration to natives in source and destination countries.
    Keywords: human capital, economic growth, demographic change, endogenous immigration, income distribution
    JEL: F22 F43 J11 J24 O15
    Date: 2020–04
  3. By: Pierre-Alexandre Balland; Ron Boschma
    Abstract: Regional capabilities are regarded a pillar of Smart Specialization Strategy (S3). There is yet little focus in S3 policy on the role of inter-regional linkages. Our study on 292 NUTS2 regions in Europe finds that inter-regional linkages have a positive effect on the probability of regions to diversify, especially in peripheral regions. What matters is not being connected to other regions per se but being connected to regions that provide complementary capabilities. Finally, we propose a new indicator that enables regions to identify other regions as strategic partners in their S3 policy, depending on the presence of complementary capabilities in other regions.
    Keywords: Smart Specialization, relatedness, inter-regional linkages, regional diversification, complementary capabilities
    JEL: O25 O38 R11
    Date: 2020–04
  4. By: Javier Barbero (European Commission - JRC); Olga Diukanova (European Commission - JRC); Carlo Gianelle (European Commission - JRC); Simone Salotti (European Commission - JRC); Artur Santoalha (TIK Centre for Technology, Innovation and culture - UIO)
    Abstract: We make the case for a technology-enabled approach to Smart Specialisation policy making in order to foster its effectiveness by proposing a novel type of economic impact assessment. We use the RHOMOLO model to gauge empirically the general equilibrium effects implied by the Smart Specialisation logic of intervention as foreseen by the policy makers designing and implementing the European Cohesion policy. More specifically, we simulate the macroeconomic effects of achieving the R&D personnel targets planned by a set of Southern European regions. We discuss the implications of the proposed methodology for future assessments of Smart Specialisation.
    Keywords: Rhomolo, Region, Growth, Smart Specialisation; ex-ante policy impact assessment; CGE models; Cohesion policy.
    JEL: C68 O38 R13 R58
    Date: 2020–04
  5. By: Mariacristina Piva (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore); Massimiliano Tani (UNSW Canberra, Australia – IZA, Bonn, Germany); Marco Vivarelli (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore – UNU-MERIT, Maastricht, The Netherlands – IZA, Bonn, Germany)
    Abstract: This paper builds on and considerably extends Piva, Tani and Vivarelli (2018), confirming the key role of Business Visits as a productivity enhancing channel of technology transfer. Our analysis is based on a unique database on business visits sourced from the U.S. National Business Travel Association, merged with OECD and World Bank data and resulting in an unbalanced panel covering 33 sectors and 14 countries over the period 1998-2013 (3,574 longitudinal observations). We find evidence that BVs contribute to fostering labour productivity in a significant way. While this is consistent with what found by the previous (scant) empirical literature on the subject, we also find that short-term mobility exhibits decreasing returns, being more crucial in those sectors characterized by less mobility and by lower productivity performances.
    Keywords: Business visits, Labour mobility, Knowledge diffusion, R&D, Productivity
    JEL: J61 O33
    Date: 2020–03

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