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on Knowledge Management and Knowledge Economy |
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Issue of 2008‒09‒20
twenty-one papers chosen by Laura Stefanescu European Research Centre of Managerial Studies in Business Administration |
| By: | Daniel G. Swaine (Department of Economics, College of the Holy Cross) |
| Abstract: | An important question is whether underdeveloped countries will converge to the per-capita income level of developed countries. Economists have used the disequilibrium adjustment property of growth models to justify the view that convergence should occur. Unfortunately, the empirical literature does not obey the "Lucas" admonition of estimating the structural parameters of a growth model that has the conditional convergence property and then computing the speed of convergence implied by the estimated structural parameters. In this paper, we use U.S. time-series data to estimate the structural parameters of a stochastic neoclassical growth model and compute the speed of conditional convergence in the non-stochastic model from the structural parameter estimates. We follow an approach used to econometrically estimate business cycle models via maximum likelihood. We obtain a speed of conditional convergence of 12.8 percent per-year for logarithmic consumer preferences and find that the data rejects the hypothesis of the 2 percent per-year speed of conditional convergence obtained in the empirical literature. |
| Keywords: | Convergence, Transitional Dynamics, Economic Growth, Economic Development, Real Business Cycle Models, Stochastic Growth Models, Time-Series Analysis |
| JEL: | C30 C32 E E32 O10 O11 O40 O41 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:hcx:wpaper:0810&r=knm |
| By: | Christophe Hurlin (LEO - Laboratoire d'économie d'Orleans - CNRS : UMR6221 - Université d'Orléans); Baptiste Venet (Leda - Laboratoire d'Economie de Dauphine - Université Paris Dauphine - Paris IX) |
| Abstract: | In this paper we investigate the causal relationship between financial development and economic growth. We use an innovative econometric method which is based on a panel test of the Granger non causality hypothesis. We implement various tests with a sample of 63 industrial and developing countries over the 1960-1995 and 1960-2000 periods. We use three standard indicators of financial development. The results provide support for a robust causality relationship from economic growth to the financial development. On the contrary, the non causality hypothesis from financial development indicators to economic growth can not be rejected in most of the cases. However, these results only imply that, if such a relationship exists, it can not be easily identified in a simply bi-variate Granger causality test. |
| Keywords: | Granger Causality Tests; Panel Data; Financial Development; Economic Growth |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00319995_v1&r=knm |
| By: | Martinsson, Gustav (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | The Schumpeterian view on Business cycles treats recessions as a cleansing mechanism and a state where firms can regroup and innovate. Firms need to access finance externally in order to compensate declining cash flow in recessions. Due to financial frictions, the literature proposes that firms need to post collateral in order to mitigate problems of information asymmetries. In this paper I view knowledge within a firm as a prerequisite for it to be innovative. Combining financial frictions and firm knowledge intensity the overall hypothesis of this paper is: Firms which have collateral can retain its knowledge intensity when cash flow declines. This enables firms with collateral to benefit from recessions like Schumpeter proposed. In this paper I explore the impact of firm collateral on the cyclicality of knowledge intensity. This is conducted through using firm level data on 14,500 Swedish manufacturing firms over the period 1997-2004. The main results are: (i) the knowledge intensity of a firm without collateral is pro-cyclical. I.e. its share of highly educated employees is positively correlated with sales variation; (ii) on the other hand, the knowledge intensity of firms with collateral is counter-cyclical. Through retaining their knowledge intensity even as sales drops firms with collateral can benefit from recessions as Schumpeter proposed. |
| Keywords: | incomplete markets; asymmetric information; business fluctuations; business cycles; corporate finance; innovation |
| JEL: | D52 D82 E32 O16 O31 |
| Date: | 2008–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0134&r=knm |
| By: | Karlsson, Charlie (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Stough, Roger (George Mason University) |
| Abstract: | The purpose of this paper is to discuss the role of entrepreneurship and innovations for economic development in functional regions and in doing that highlighting the different conditions offered for entrepreneurship and innovations in functional regions of various sizes. In conclusion, the conditions for entrepreneurship and innovations vary substantially between functional regions, since the necessary knowledge resources tend to be local and to cluster in certain regions and not others. Functional regions with a high capacity to generate new ideas, create knowledge, organizational learning and innovations are characterized as learning regions. Large functional regions offer a large market potential and a superior accessibility to knowledge and knowledge resources and they will further develop their creative capabilities due to an accumulation of innovative and entrepreneurial knowledge. |
| Keywords: | Entrepreneurship; Innovations; Regional development; R&D; Knowledge Sources; Knowledge Flows; Knowledge Creation |
| JEL: | D21 M13 R10 |
| Date: | 2008–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0144&r=knm |
| By: | Andreas Eisingerich (Tanaka Business School, Imperial College London); Oliver Falck (Ifo Institute for Economic Research and CESifo); Stephan Heblich (Max Planck Institute of Economics); Tobias Kretschmer (Institute for Communication Economics, LMU Munich) |
| Abstract: | Industrial clusters develop regionally along the industry's lifecycle and typically exist over many product generations. In order to maintain their innovativeness, they have to develop and adjust along the industry lifecycle. We conduct 142 depth face-to-face interviews in clusters across two continents to examine the drivers of a cluster's innovativeness along the industry lifecycle. The results from our interviews suggest that the impact of key drivers of cluster innovativeness change depending on the stage of a cluster's underlying industry lifecycle. Classifying clusters as either being adolescent (information technology, biotechnology) or mature (automotive, chemicals), our regression analyses show a changing influence of cluster patterns along the industry lifecycle on a firm's innovativeness. Specifically, we analyze the impact of interorganizational network strength, openness, university collaboration, and intrapreneurship on radical innovation across adolescent and mature clusters. Implications for research and policy makers are discussed. |
| Keywords: | Cluster, Industry Lifecycle, Innovation |
| JEL: | O18 R12 L6 |
| Date: | 2008–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2008-070&r=knm |
| By: | Hulsink, W.; Suddle, K.; Hessels, S.J.A. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | In this contribution we develop a theoretical framework derived from the national system of innovation literature and the subsequent criticisms voiced by regional scientists and industry/technology experts who emphasize the importance of the intermediate subnational and sectoral levels to analysing science- and technology-based regional entrepreneurship in the Netherlands. The national system of innovation of the Netherlands, and its specifics and peculiarities, and the country’s general entrepreneurship policy, and the most important policy and support initiatives are subsequently discussed. Based on a desire to overcome the knowledge paradox between fundamental research and market needs and on the recognition that the Netherlands lags behind other countries when it comes to innovative entrepreneurship, various changes and initiatives were recently introduced in the Netherlands. The impression is of an overambitious national government with numerous programmes, schemes and agencies involved, sometimes working with each other but at other times separately as well, and its effectiveness can be questioned. Serious paperwork and preparation is involved in the participation in most programes and, together with the complexity of these programmes and policies, small and young entrepreneurs are neither informed, ready or well-equipped; some of them are not even interested in participating in those schemes. |
| Keywords: | system of innovation;science & technology policy;the Netherlands;regional entrepreneurship;high-growth entrepreneurship;universities;knowledge transfer |
| Date: | 2008–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:1765013220&r=knm |
| By: | Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Ebersberger, Bernd (MCI) |
| Abstract: | Over the past decades, there has been a dramatic increase in the foreign-ownership of firms in the four Nordic countries Denmark, Finland, Norway and Sweden. This increase has generated interest in the welfare effect of foreign take-over of national assets. In this paper we ask: how would a firm’s behaviour and performance have been if a foreign owner had not acquired the firm? The analysis is based on a sample of 5 186 firm-level observations in four Nordic countries, of which close to 30 percent are owned by foreign companies. Using an empirical approach that accounts for both selection bias and simultaneity bias, we establish some new findings regarding foreign ownership. First, no robust difference in the propensity to be innovative can be established. Second, among the group of innovative firms, foreign-owned multinationals are generally outperformed by domestic multinationals in R&D and innovation engagement. Third, despite the fact that domestic multinationals are considerably more involved in national innovation systems than other firms, they are not producing more innovation per R&D-dollar, controlling for firm size, human capital and industry. Finally, we find that foreign take-over of firms is neutral with respect to labour productivity, and hence that no evidence of welfare gain or welfare drain of foreign ownership can be established. |
| Keywords: | Multinational enterprises; Take-Over; Corporate Governance; Cross-country comparison; Spillovers; R&D; Innovation; Productivity |
| JEL: | C31 D21 F23 G34 L22 O31 O33 |
| Date: | 2008–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0141&r=knm |
| By: | Martinsson, Gustav (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper explores how sales and employment for knowledge intensive consulting firms are correlated. I apply theory on cash flow-investment sensitivities, mostly applied to manufacturing firms, to a less capital intensive part of the economy. Therefore the knowledge intensive consulting sector is investigated but instead of analyzing the investment in plant and machinery this analysis regards the investment in skilled employees. The argument of Kaplan & Zingales (1997) regarding low cash flow-investment sensitivity being a sign of financial distress is applied. The main result is that firms less likely to be financially constrained display 60 percent higher sales-employment sensitivities than firms more likely to be financially constrained. The results are estimated from a sample comprising 23,500 Swedish knowledge intensive consulting firms. |
| Keywords: | Incomplete markets; asymmetric information; knowledge intensive business services; economic development |
| JEL: | D52 D82 L84 O16 |
| Date: | 2008–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0135&r=knm |
| By: | Lejpras, Anna (DIW Berlin); Stephan, Andreas (CESIS and JIBS) |
| Abstract: | This paper has two goals. First, it analyzes the extent to which the innovativeness of spin-offs, either born from a research facility or from another company, is influenced by locational conditions. Second, it provides evidence on how important local cooperation links are in comparison to nonlocal ones. Using a sample of approximately 1,500 East German firms from knowledge-intensive sectors, we estimate a structural equation model applying the partial least squares method. We find that proximity to local research institutes and universities is the most influential factor for the cooperation intensity of spin-offs. Furthermore, the higher the cooperation intensity, the greater the innovativeness of a firm. Moreover, the results indicate that it is not the local but the nonlocal cooperation ties that are more conducive to innovativeness of research spin-offs. The findings also highlight that the innovativeness of research spin-offs with solely local links is strongly depends on support from various authorities and institutions. |
| Keywords: | Research and Company Spin-Offs; Locational Conditions; Cooperation Intensity; Innovativeness; Structural Equation Modeling; Partial Least Squares Approach |
| JEL: | M13 O18 |
| Date: | 2008–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0136&r=knm |
| By: | Roberto Patuelli (Centre for European Economic Research (ZEW), Mannheim, Germany; Katholieke Universiteit Leuven, Belgium; University of Zurich, Switzerland and The Rimini Centre for Economic Analysis, Italy); Christoph Grimpe (Centre for European Economic Research (ZEW), Mannheim, Germany; Katholieke Universiteit Leuven, Belgium; University of Zurich, Switzerland) |
| Abstract: | Nanomaterials are seen as a key technology for the 21st Century, and much is expected of them in terms of innovation and economic growth. They could open the way to many radically new applications, which would form the basis of innovative products. In this context, it seems all the more important for regions to put their own innovation systems in place, and to ensure that they offer a suitable location for such activities in order to benefit from the expected growth. Many regions have already done so by establishing ‘science parks’ and ‘nanoclusters’. As nanomaterials are still in their infancy, both public research institutes and private businesses could play a vital role in the process. This paper investigates what conditions and configurations allow a regional innovation system to be competitive in a cutting-edge technology like nanomaterials. We analyse European Patent Office data at the German district level (NUTS-3) on applications for nanomaterial patents, in order to chart the effects of localised research and development (R&D) in the public and private sector. We estimate two negative binomial models in a knowledge production function framework and include a spatial filtering approach to adjust for spatial effects. Our results indicate that there is a significant positive effect of both public and private R&D on the production of nanomaterial patents. Moreover, we find a positive interaction between them which hints at the importance of their co-location for realising the full potential of an emerging technology like nanomaterials. |
| Keywords: | nanotechnology, innovation, patents, Germany, spatial autocorrelation, spatial filtering |
| JEL: | L60 O32 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:29-08&r=knm |
| By: | Zoltan J. Acs (George Mason University and Max Planck Institute of Economics); Mark Sanders (Utrecht School of Economics and Max Planck Institute of Economics) |
| Abstract: | We develop a model in which stronger protection of intellectual property rights has an inverted U-shaped effect on innovation. Intellectual property rights protection allows the incumbent firms to capture part of the rents of commercial exploration that would otherwise accrue to the entrepreneurs. Stronger patent protection will increase the incentive to do R+D and generate new knowledge. This has a positive impact on entrepreneurship and innovation. However, after some point, further strengthening patent protection will reduce the returns to entrepreneurship sufficiently to reduce overall economic growth. |
| Keywords: | Intellectual Property Rights, Endogenous Growth, Entrepreneurship, Incentives, Knowledge Spillovers, Rents |
| JEL: | J24 L26 M13 O3 |
| Date: | 2008–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2008-069&r=knm |
| By: | Martin Shubik (Cowles Foundation, Yale University) |
| Abstract: | A discussion is given of the problems involved in the formal modeling of the innovation process. The link between innovation and finance is stressed. The nature of how the circular flow of funds is broken and the role of finance in evaluation and control is discussed. |
| Keywords: | Innovation, Invention, Circular flow, Finance |
| JEL: | D5 G2 O3 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:1674&r=knm |
| By: | Philipp Koellinger (Erasmus University Rotterdam); Christian Schade (Humboldt-Universität zu Berlin) |
| Abstract: | This paper studies the diffusion of multiple, related technologies among firms. The results suggest an endogenous acceleration mechanism of technology adoption: The more advanced a firm is in using a particular set of technologies, the more likely it is to adopt additional, related technologies. We show that such a mechanism can occur under fairly general circumstances. If firms are not ex ante identical, the endogenous acceleration mechanism suggests a growing divergence in technological endowment of firms in the early phases after the emergence of a new technological paradigm. The theoretical predictions are tested with a dataset that records the adoption times of various e-business technologies in a large sample of firms from 10 different industry sectors and 25 European countries. The results show that the probability to adopt strictly increases with the number of previously adopted e-business technologies. Evidence for a growing digital divide among the companies in the sample is demonstrated for the period from 1994-2002. |
| Keywords: | Technology adoption; technological change; complementarity; hazard rate model; IT |
| JEL: | O33 O14 |
| Date: | 2008–09–03 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20080081&r=knm |
| By: | Johansson, Maria (SISTER) |
| Abstract: | This study attempts to provide a new perspective on current shifts in knowledge production through analysing the relationship between research and education. The study, based on interviews and questionnaires, focus on the interaction within applied research centres with a close industry co-operation. The results suggests that the interaction between research and education benefits from a collaborative environment since: researchers hold positive attitudes toward integrating research, education and collaboration, and students are given the opportunity to work within applied research projects. The findings are discussed in terms of researchers’ ability to handle their scholarly tasks of research, teaching, and collaboration, and the importance for acknowledging research collaborations from both research and teaching perspectives. |
| Keywords: | Research and teaching links; collaboration; applied research; undergraduate education |
| JEL: | I21 I23 |
| Date: | 2008–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0138&r=knm |
| By: | Wan-Hsin LIU |
| Abstract: | Since 1997 the Hong Kong (HK) government has markedly changed its role from being a mere institution provider to being an active innovation promoter. As such, it has actively implemented innovation policies that focus especially on creating new funding opportunities and establishing several R&D centres to facilitate information flow and innovation cooperation between universities and industries. One of the industries in which it has been especially active is the electronics industry. Thus this study looks at the electronics industry to examine, using data collected from a questionnaire survey on the HK electronics SMEs, whether these policies have positively affected innovation intensity in HK. The survey findings indicate that there has been an increase in innovation activities in HK, but also that neither the R&D centres nor the universities have played important roles as innovation sources or innovation partners for the HK electronics SMEs. Rather, the main way through which universities and R&D centres support the HK electronics SMEs’ innovation activities seems to be the provision of a highly-qualified labour-force transmitting academic knowledge to companies |
| Keywords: | electronics, innovation, innovation policy, regional survey, Hong Kong, China |
| JEL: | D21 L60 O31 O33 O38 R10 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1445&r=knm |
| By: | Yanez-Pagans, Monica (University of Illinois at Urbana-Champaign) |
| Abstract: | This paper uses a policy quasi-experiment created by the introduction of an old-age unconditional cash transfer program in Bolivia to study the intra-household income allocation process towards children's educational expenditure by ethnicity and gender of the recipient. Taking advantage of a sharp discontinuity created by the program assignment mechanism, I investigate the heterogeneity in the patterns of allocation within indigenous, multiethnic, and non-indigenous families, conditional on having one elder and one school-age child living in the household. I find that cultural factors (proxied by ethnicity) count in the decision making process of human capital investments. In particular, the allocation of resources within indigenous families follows rules closely related to patriarchal family structures (in which women have limited decision-making power) and is consistent with unitary, dictatorial, and common preferences theoretical household models. Conversely, non-indigenous families follow decision rules more closely related to collective and bargaining behavior models. |
| Keywords: | Bolivia, culture, Bolivida, educational expenditure |
| JEL: | H55 O15 I12 D12 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3678&r=knm |
| By: | Takalo , Tuomas (Bank of Finland Research); Tanayama , Tanja (Helsinki Center of Economic Research (HECER)) |
| Abstract: | We study the interaction between private and public funding of innovative projects in the presence of adverse-selection based financing constraints. Government programmes allocating direct subsidies are based on ex-ante screening of the subsidy applications. This selection scheme may yield valuable information to market-based financiers. We find that under certain conditions, public R&D subsidies can reduce the financing constraints of technology-based entrepreneurial firms. Firstly, the subsidy itself reduces the capital costs related to innovation projects by reducing the amount of market-based capital required. Secondly, the observation that an entrepreneur has received a subsidy for an innovation project provides an informative signal to market-based financiers. We also find that public screening works more efficiently if it is accompanied by subsidy allocation. |
| Keywords: | adverse selection; innovation finance; financial constraints; R&D subsidies; certification |
| JEL: | D82 G28 H20 O30 O38 |
| Date: | 2008–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2008_019&r=knm |
| By: | Meuleman, M.; De Maeseneire, W. (Vlerick Leuven Gent Management School) |
| Abstract: | Many countries spend sizeable sums of public money on R&D grants to alleviate debt and equity gaps for small firms’ innovation projects. In making such awards, knowledgeable government officials may certify firms to private financiers. This paper investigates whether government subsidies to R&D enhance SMEs’ access to external financing due to this certification effect. Using a unique Belgian dataset of 1107 approved requests and a control group of 501 denied requests for a specific type of R&D grant, we examine the impact on small firms’ external equity, short term and long term debt financing. We find that obtaining a R&D subsidy provides a positive signal about SME quality and results in better access to long-term debt. |
| Keywords: | R&D subsidies, government policy, SMEs, financial constraints, certification hypothesis, behavioural additionality |
| JEL: | G32 H25 O38 |
| Date: | 2008–09–10 |
| URL: | http://d.repec.org/n?u=RePEc:vlg:vlgwps:2008-12&r=knm |
| By: | Payot, Frederic (Universitie of Lausanne); Szalay, Dezsö (Economics Department, University of Warwick.) |
| Abstract: | We analyze a two-stage patent race. In the first phase firms seek to develop a research tool, an innovation that has no commercial value but is necessary to enter the second phase of the race. The firm that completes the second phase of the race first obtains a patent on the final innnovation and enjoys its profits. We ask whether patent protection for the innovator of the research tool is beneficial from the ex ante point of view. We show that there is a range of values of the final innovation such that firms prefer to have no Intellectual Property Rights for research tools. |
| Keywords: | Sequential Patent Race ; Intellectual Property Rights ; Knowledge Sharing |
| JEL: | D86 L00 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:864&r=knm |
| By: | Robert S. Huckman (Harvard Business School, Technology and Operations Management Unit); Bradley R. Staats (Harvard Business School) |
| Abstract: | Prior work in organizational learning has failed to find a consistent effect of variation in experience on performance. While some studies find a positive relationship between these two variables, others find no effect or even a negative relationship. In this paper, we suggest that the differences in prior findings may be due to the failure to separate the processes of knowledge acquisition and knowledge application. While variation in experience may permit the acquisition of valuable knowledge, additional mechanisms may be necessary to enable the subsequent application of that knowledge in a team setting. We hypothesize that team familiarity - prior experience working with team members - may be such a mechanism. We use detailed project- and individual-level data from an Indian software services firm to examine the effects of team familiarity and variation in market experience on multiple measures of performance for over 1,100 software development projects Consistent with prior work, we find mixed results for the effect of variation in experience on performance. We do, however, see evidence of a moderating effect of team familiarity on the relationship between these two variables. Our paper identifies one mechanism for uniting knowledge acquisition and knowledge application and provides insight into how the management of experience accumulation affects the development of organizational capabilities. |
| Keywords: | Experience, Knowledge, Software, Team Familiarity, Variation |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:09-035&r=knm |
| By: | Luigi Aldieri (University of Naples Parthenope & Université Libre de Bruxelles, DULBEA-CERT) |
| Abstract: | The purpose of this paper is to investigate the pattern of knowledge flows as indicated by patent citations. In order to compute the technological proximity, we have followed the methodology developed by Jaffe (1986), where a technological vector is based on the distribution of patents of each firm across technology classes. As far as the geographic proximity is concerned, we have used the latitude and the longitude coordinates of the city in which each firm is located. The empirical results suggest that the effects of proximity variables on knowledge flows are rather differentiated. |
| Keywords: | Innovation, Knowledge Spillovers, Technology Transfer, Patent Citations. |
| JEL: | F1 F2 O3 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:dul:wpaper:08-18rs&r=knm |