nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2021‒05‒17
four papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Intellectual Property-Related Preferential Trade Agreements and Offshoring to Developing Countries By Canals, Claudia; Klein, Michael A; Sener, Fuat
  2. Combinatorial knowledge bases, proximity and agency across space: the case of the high-end medical device industry in Shanghai By Shuaijun Xue; Robert Hassink
  3. Mobile technology supply factors and mobile money innovation: Thresholds for complementary policies By Simplice A. Asongu; Nicholas M. Odhiambo
  4. Measuring human capital using global learning data By Angrist, Noam; Djankov, Simeon; Goldberg, Pinelopi K.; Patrinos, Harry A.

  1. By: Canals, Claudia; Klein, Michael A; Sener, Fuat
    Abstract: International standards in the protection of intellectual property rights (IPRs) are increasingly guided by bilateral and regional preferential trade agreements (PTAs). In this paper, we estimate the effect of these IP-related PTAs on US offshoring behavior in developing countries. We utilize a difference-in-difference empirical methodology that addresses several possible sources of endogeneity and exploits industry variation in the importance of IPRs to identify the effect of these PTA-induced IPR reforms. We find that IP-related PTAs are associated with a substantial increase in US offshoring in IPR-intensive industries relative to non-IPR-intensive industries. This increase occurs both within the boundaries of the multinational firm and through arm’s-length contracts with domestic firms. We do not find strong evidence for a compositional shift towards either type of offshoring. These findings provide direct empirical evidence that PTA-induced IPR reform stimulates multinational activity in developing countries.
    Keywords: Intellectual property rights; Patents; Preferential trade agreements; Offshoring; Outsourcing; Subcontracting; Multinational firms
    JEL: F13 F23 O33 O34
    Date: 2021–05–11
  2. By: Shuaijun Xue; Robert Hassink
    Abstract: Recently the knowledge base (KB) concept has been extended with combinational knowledge bases (CKB) in order to overcome the dichotomy between analytical, synthetic and symbolic KB. So far, however, empirical studies on these CKB have insufficiently focused on multi-scalar mechanisms, which is a gap we would like to fill with the help of this paper. Therefore, it aims at analyzing CKB from a proximity, agency and multi-scalar perspective. Through interviews with high-end medical device companies from Shanghai, findings show that, first, in this local industry a combination of analytical and synthetic knowledge prevail. Secondly, knowledge interactions differ at different spatial scales, which is strongly related to the characteristics of the local KB and the position of local knowledge in the global industrial knowledge value chain. Thirdly, in this industry cognitive proximity is the key factor facilitating combinatorial knowledge interactions at all spatial scales. Institutional and geographical proximity are obviously more important at the local scale. Fourthly, concerning the effect of agencies on proximities, place leadership and institutional entrepreneurship work respectively at the local and national level, while the role of innovative entrepreneurship is observed at all levels.
    Keywords: Combinational knowledge bases, proximity, agency, multi-scalar perspective
    Date: 2021
  3. By: Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: This study complements the extant literature by assessing how enhancing supply factors of mobile technologies affect mobile money innovations for financial inclusion in developing countries. The mobile money innovation outcome variables are: mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money. The mobile technology supply factors are: unique mobile subscription rate, mobile connectivity performance, mobile connectivity coverage and telecommunications (telecom) sector regulation. The empirical evidence is based on quadratic Tobit regressions and the following findings are established. There are Kuznets or inverted shaped nexuses between three of the four supply factors and mobile money innovations from which thresholds for complementary policies are provided as follows: (i) Unique adults’ mobile subscription rates of 128.500%, 121.500% and 77.750% for mobile money accounts, the mobile used to send money and the mobile used to receive money, respectively; (ii) the average share of the population covered by 2G, 3G and 4G mobile data networks of 61.250% and 51.833% for the mobile used to send money and the mobile used to receive money, respectively; and (iii) a telecom sector regulation index of 0.409, 0.283 and 0.283 for mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money, respectively. Some complementary policies are discussed, because at the attendant thresholds, the engaged supply factors of mobile money technologies become necessary, but not sufficient conditions of mobile money innovations for financial inclusion.
    Keywords: Mobile money; technology diffusion; financial inclusion; inclusive innovation
    JEL: D10 D14 D31 D60 O30
    Date: 2021–01
  4. By: Angrist, Noam; Djankov, Simeon; Goldberg, Pinelopi K.; Patrinos, Harry A.
    Abstract: Human capital—that is, resources associated with the knowledge and skills of individuals—is a critical component of economic development1,2. Learning metrics that are comparable for countries globally are necessary to understand and track the formation of human capital. The increasing use of international achievement tests is an important step in this direction3. However, such tests are administered primarily in developed countries4, limiting our ability to analyse learning patterns in developing countries that may have the most to gain from the formation of human capital. Here we bridge this gap by constructing a globally comparable database of 164 countries from 2000 to 2017. The data represent 98% of the global population and developing economies comprise two-thirds of the included countries. Using this dataset, we show that global progress in learning—a priority Sustainable Development Goal—has been limited, despite increasing enrolment in primary and secondary education. Using an accounting exercise that includes a direct measure of schooling quality, we estimate that the role of human capital in explaining income differences across countries ranges from a fifth to half; this result has an intermediate position in the wide range of estimates provided in earlier papers in the literature5–13. Moreover, we show that average estimates mask considerable heterogeneity associated with income grouping across countries and regions. This heterogeneity highlights the importance of including countries at various stages of economic development when analysing the role of human capital in economic development. Finally, we show that our database provides a measure of human capital that is more closely associated with economic growth than current measures that are included in the Penn world tables version 9.014 and the human development index of the United Nations15.
    JEL: J1 N0 F3 G3
    Date: 2021–04–15

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