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Becoming Leaders in Knowledge-intensive Innovation Ecosystems
Edited by Maureen McKelvey and Jun Jin
Edited by Maureen McKelvey and Jun Jin
Understanding Economic Geography and Location Over Time
Miroslav N. Jovanovic
Essays in Honour of Geoffrey M. Hodgson
Edited by Francesca Gagliardi and David Gindis
A Manifesto for Change
Cristiano Antonelli and Alessandra Colombelli
This chapter explores the knowledge cost function, the study of which makes possible important progress in grasping the determinants of the large variance in the cost of innovation across firms. The amount of external knowledge and internal stocks of knowledge that firms can access and use in the generation of new technological knowledge helps firms reduce the costs of innovation. The empirical section is based upon companies listed on the financial markets in the UK, Germany, France and Italy for the period 1995–2006 for which information about patents have been gathered. The econometric analysis of the costs of innovation knowledge considers the unit costs of patents alongside R & D expenditure and the stock of internal and external knowledge for each firm. The results confirm that the stock of internal knowledge and access to external knowledge play key roles in assessing the actual capability of each firm to generate new technological knowledge.
Cristiano Antonelli and Agnieszka Gehringer
This chapter shows how and why the use of external knowledge is necessary to complement the recombinant generation of new knowledge. When access to external knowledge occurs at costs below the social value of knowledge, firms benefit from pecuniary knowledge externalities and are actually able to introduce productivity-enhancing innovations. The empirical evidence on 20 OECD countries confirms that the growth of total factor productivity is negatively associated with the costs of knowledge. Total factor productivity thus increases faster where and when the costs of knowledge are lower.
Cristiano Antonelli and Gianluigi Ferraris
This chapter elaborates an agent-based simulation model (ABM) to explore the endogenous long-term dynamics of knowledge externalities. ABMs, as a form of artificial cliometrics, allow analysis of the effects of the reactivity of firms caught in out-of-equilibrium conditions, combined with endogenous knowledge externalities stemming from the levels of knowledge connectivity of the system. The simulation results show the working of endogenous knowledge externalities as well as their powerful effects. At the micro-level, the reactions of firms caught in out-of-equilibrium conditions yield successful effects in the form of productivity-enhancing innovations only in the presence of high levels of knowledge connectivity and strong pecuniary knowledge externalities. At the meso-level, the introduction of innovations changes the structural characteristics of the system in terms of knowledge connectivity that affect the availability of knowledge externalities. Endogenous centrifugal and centripetal forces continually reshape the structure of the system and its knowledge connectivity. At the macro-system level, an out-of-equilibrium process leads to a step-wise increase in productivity combined with non-linear patterns of output growth characterized by significant oscillations typical of the long waves in Schumpeterian business cycles.
The notion of endogenous innovation as the outcome of the creative response of firms to out-of-equilibrium conditions is the cornerstone of the new evolutionary complexity. This chapter explores the role of the reactivity of firms to out-of-equilibrium conditions and of knowledge governance in assessing the chances that creative responses actually take place as an alternative to adaptive responses. It implements a systemic frame able to show that: i) the quality of knowledge governance is a determinant in making the response of firms creative rather than adaptive; and ii) the levels of firms’ reactivity enhance the rates of introduction of innovations and increase total factor productivity.