nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2021‒03‒29
five papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Does a local knowledge base in Industry 3.0 foster diversification in Industry 4.0 technologies? Evidence from European regions By Matteo Laffi; Ron Boschma;
  2. Knowledge-Based Structural Change By Kevin Genna; Christian Ghiglino; Kazuo Nishimura; Alain Venditti
  3. Cognitive perspective to Organizational Innovation: Evidence from F1 racing By Latasri Hazarika1; Deepak Dhayanithy
  4. Breaking out of the innovation trap? Towards promoting private R&D investment in Kuwait By Arman, Husan; Iammarino, Simona; Ibarra-Olivo, J. Eduardo; Lee, Neil
  5. Higher Education and Smart Specialisation in Lower Austria By John Edwards; Sybille Reichert

  1. By: Matteo Laffi; Ron Boschma;
    Abstract: The aim of the paper is to shed light on the role played by regional knowledge bases in Industry 3.0 in fostering new technologies in Industry 4.0 in European regions (NUTS3) over the period 1991-2015. We find that 4.0 technologies appear to be quite related to 3.0 technologies, with some heterogeneity among different technology fields. The paper investigates the geographical implications. We find that the probability of developing Industry 4.0 technologies is higher in regions that are specialised in Industry 3.0 technologies. However, other types of knowledge bases also sustain regional diversification in Industry 4.0 technologies.
    Keywords: Fourth Industrial Revolution, Industry 4.0, regional innovation, patents, knowledge space, relatedness, EU regions
    JEL: B52 O33 R11
    Date: 2021–03
  2. By: Kevin Genna (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Christian Ghiglino (Department of Economics, University of Essex - University of Essex); Kazuo Nishimura (RIEB, Kobe University - Kobe University); Alain Venditti (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, EDHEC - EDHEC Business School)
    Abstract: How will structural change unfold beyond the rise of services? Motivated by the observed dynamics within the service sector we propose a model of structural change in which productivity is endogenous and output is produced with two intermediate substitutable capital goods. In the progressive sector the accumulation of knowledge leads to an unbounded increase in TFP, as sector becoming asymptotically dominant. We are then able to recover the increasing shares of workers, the increasing real and nominal shares of the output observed in progressive service and IT sectors in the US. Interestingly, the economy follows a growth path converging to a particular level of wealth that depends on the initial price of capital and knowledge. As a consequence, countries with the same fundamentals but lower initial wealth will be characterized by lower asymptotic wealth.
    Keywords: two-sector model,technological knowledge,constant elasticity of substitution,non-balanced endogenous growth,structural change,Kaldor and Kuznets facts
    Date: 2021–03
  3. By: Latasri Hazarika1 (Indian Institute of Management Kozhikode); Deepak Dhayanithy (Indian Institute of Management Kozhikode)
    Abstract: The study aims to study the link between cognition structure of individual decision makers and strategic decisions of organizations. Specifically, the impact of positive affect and cognitive anxiety on the innovative quotient of organizations. The study is based on the context of formula one car racing teams due to their heavy reliance on cutting edge technology for performance. Data for top ten racing teams over a period of three years is analyzed. The findings suggest a positive relation between positive affect and innovation and negative relation between cognitive anxiety and innovation. The study contributes towards the literature on micro foundations of strategic decision making.
    Keywords: Organizational innovation, F1 car race
    Date: 2020–06
  4. By: Arman, Husan; Iammarino, Simona; Ibarra-Olivo, J. Eduardo; Lee, Neil
    Abstract: Kuwait combines rich-world national income with the Research and Development (R&D) spending of a developing country. This situation is unsustainable. This report uses the National System of Innovation (NSI) framework to investigate how the Kuwaiti government could increase private sector R&D spending. Based on a review of the existing literature and data alongside a survey of large Kuwaiti firms, we find that few of the necessary and sufficient conditions for a functioning NSI are currently in place. The most important problem for private sector R&D in Kuwait is the general lack of skills and capabilities for innovation, which means that firms have few incentives to invest in risky, long term and skill intensive R&D activity. Future efforts to increase R&D by simply investing further in public R&D risks wasting money, without the adequate institutions, skills and framework conditions required to turn R&D into commercial success. Instead, we argue the Kuwaiti government should rethink the education system at all levels, implement a bottom-up diversification strategy, strengthen the Kuwaiti Information System and carry out a thorough governance review of innovation processes.
    JEL: R14 J01 E6
    Date: 2021–03–01
  5. By: John Edwards (Policy Experimentation and Evaluation Platform); Sybille Reichert (Reichert Consulting)
    Abstract: This technical report presents the results of a case study in the region of Lower Austria, as part of the project on Higher Education for Smart Specialisation (HESS), an initiative of the Joint Research Centre and DG Education, Culture, Youth and Sport of the European Commission. The action research approach that is normally adopted in HESS case studies, namely to develop and implement the case study in close contact with the regional authority and local innovation actors, was limited due to the Covid pandemic, which broke out shortly after work began. Much of the research had to be conducted online, but a final event could be held to discuss the results once the pandemic has ended. Nevertheless, the case study of Lower Austria provides a particularly interesting perspective on the subject of how Higher Education Institutions (HEIs) can be harnessed to support innovation. While many of the other HESS case studies involved regions with historically important traditional universities, Lower Austria only has relatively small Universities of Applied Sciences (UAS) and the Donau University Krems, an internationally renowned public university that specialises in continuing professional development courses and degree programmes. However, the government of Lower Austria has made up for this through strategically targeted cooperation initiatives with these HEIs, research institutes and traditional universities from neighbouring Vienna, while using its oversight of the UAS sector to boost their presence in the region.
    Keywords: Smart specialisation strategies, higher education institutions, universities, territorial development, human capital, skills, innovation and growth, entrepreneurship
    Date: 2021–03

This nep-knm issue is ©2021 by Laura Ştefănescu. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.