nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2021‒02‒01
six papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Robots, AI, and Related Technologies: A Mapping of the New Knowledge Base By Enrico Santarelli; Jacopo Staccioli; Marco Vivarelli
  2. Innovate to Lead or Innovate to Prevail: When do Monopolistic Rents Induce Growth? By Roberto Piazza; Yu Zheng
  3. Firm-level R&D after periods of intense technological innovation: the role of investor sentiment By Sirio Aramonte; Matthew Carl
  4. Ghana Digital Economy Diagnostic By World Bank Group
  5. Sustainability and Industrial Challenge: The Hindering Role of Complexity By Tommaso Ciarli; Karolina Safarzynska
  6. Is Digitalization Driving Domestic Inflation? By Balazs Csonto; Yuxuan Huang; Camilo E Tovar Mora

  1. By: Enrico Santarelli (Department of Economics, University of Bologna – Department of Economics and Management, University of Luxembourg); Jacopo Staccioli (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore – Institute of Economics, Scuola Superiore Sant’Anna, Pisa); Marco Vivarelli (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore – UNU-MERIT, Maastricht, The Netherlands – IZA, Bonn, Germany)
    Abstract: Using the entire population of USPTO patent applications published between 2002 and 2019, and leveraging on both patent classification and semantic analysis, this papers aims to map the current knowledge base centred on robotics and AI technologies. These technologies will be investigated both as a whole and distinguishing core and related innovations, along a 4-level core-periphery architecture. Merging patent applications with the Orbis IP firm-level database will allow us to put forward a threefold analysis based on industry of activity, geographic location, and firm productivity. In a nutshell, results show that: (i) rather than representing a technological revolution, the new knowledge base is strictly linked to the previous technological paradigm; (ii) the new knowledge base is characterised by a considerable – but not impressively widespread – degree of pervasiveness; (iii) robotics and AI are strictly related, converging (particularly among the related technologies) and jointly shaping a new knowledge base that should be considered as a whole, rather than consisting of two separate GPTs; (iv) the U.S. technological leadership turns out to be confirmed.
    Keywords: Robotics, Artificial Intelligence, General Purpose Technology, Technological Paradigm, Industry 4.0, Patents full-text
    JEL: O33
    Date: 2021–01
  2. By: Roberto Piazza; Yu Zheng
    Abstract: This paper extends the Schumpeterian model of creative destruction by allowing followers’ cost of innovation to increase in their technological distance from the leader. This assumption is motivated by the observation the more technologically ad- vanced the leader is, the harder it is for a follower to leapfrog without incurring extra cost for using leader’s patented knowledge. Under this R&D cost structure, leaders innovate to increase their technological advantage so that followers will eventually stop innovating, allowing leadership to prevail. A new steady state then emerges featuring both leaders and followers innovating in few industries with low aggregate growth.
    Keywords: Labor supply;Skilled labor;Labor;Consumption;Technology;WP
    Date: 2019–12–27
  3. By: Sirio Aramonte; Matthew Carl
    Abstract: Following periods of intense technological innovation, R&D is a critical driver of technology diffusion, but it is subject to frictions that can lower it below the level firms would undertake otherwise. We study whether sentiment can counterbalance these frictions and thus strengthen the link between firm-level R&D and lagged aggregate innovation. We find a positive answer for low-tech firms, which represent the main conduit for technology diffusion. The effect is stronger in the presence of informational externalities, that is when the results of experimentation funded by a company are observable by competitors. In contrast to the literature on sentiment and capital expenditures, the effect is weaker for financially constrained firms.
    Keywords: investor sentiment, technological innovation, R&D
    JEL: G02 G31 O32 O33
    Date: 2021–01
  4. By: World Bank Group
    Keywords: Information and Communication Technologies - ICT Economics Information and Communication Technologies - ICT Policy and Strategies Infrastructure Economics and Finance - Infrastructure Economics Private Sector Development - Enterprise Development & Reform Private Sector Development - Private Sector Economics
    Date: 2019
  5. By: Tommaso Ciarli (Science Policy Research Unit (SPRU), University of Sussex.); Karolina Safarzynska (Faculty of Economic Sciences, University of Warsaw.)
    Abstract: A transition to a low-carbon economy requires moving to the production of goods that are less energy- and material-intensive than current practices. This may prove difficult, as producer objectives may not align with reducing pollution, unless this is a consumer priority, or is imposed by regulations. It has been argued that changing lifestyles and consumer preferences can drive technological change towards sustainability. In this paper we use the model by Windrum et al. (2009b) to show that the interactions between the populations of consumers, producers and technologies, when product components are interdependent, generate complexity, as a result of which changing consumer preferences may be insufficient to achieve sustainability objectives. Complexity may influence negatively the rate and direction of innovations towards the production of greener goods, causing a vicious cycle. Firms tend to remain stuck in local optima of the existing technological landscape, if most consumers are satisfied with the non-green characteristics of goods. As a result, firms are less likely to explore innovation possibilities to improve environmental performance of their products, which in turn reduces consumer expectations with respect to the environmental quality of future goods. As pro-environment consumers also imitate the higher preferences for non-green characteristics, firms have even higher incentives to improve those characteristics in the current technological paradigm than to explore new greener paradigms. The toy model proposed in this paper can be applied to study diffusion of ‘green’ products in a number of industries and to study environmental policies that can reduce complexity. The paper also offers a selected review of micro and industry level models of sustainable transitions.
    Keywords: Sustainable transition; industry-demand co-evolution; interactions; complexity
    Date: 2020–11
  6. By: Balazs Csonto; Yuxuan Huang; Camilo E Tovar Mora
    Abstract: This paper examines the extent to which digitalization—measured by a new proxy based on IP addresses allocations per country—has influenced inflation dynamics in a sample of 36 advanced and emerging economies over 2000-2017. Phillips curve estimates show that digitalization has a statistically significant negative effect on inflation in the short run. Its economic impact is not large but has increased since 2012 and mainly operates through a cost/competition channel. Principal components and cointegration analysis further suggest digitalization is a key driver of lower trend inflation.
    Keywords: Inflation;Digitalization;Global value chains;Digital economy;Output gap;WP,Phillips curve
    Date: 2019–12–06

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