1st Edition

The Economics of Knowledge and..

    1838 Pages
    by Routledge

    Fritz Machlup (1902–83), the Austrian-American economist, is recognized as one of the first scholars to examine knowledge as an economic resource and, for more than half a century, many other economists and management theorists have also argued that economic growth is—or soon will be—dependent on the effective acquisition, transmission, and application of information and ideas.

    As serious scholarly work on and around ‘the knowledge economy’ continues to flourish, this new four-volume collection from Routledge’s Critical Concepts in Economics series meets the need for an authoritative, up-to-date, and comprehensive reference work to make better sense of a voluminous—and somewhat amorphous—body of literature. The Economics of Knowledge and the Knowledge-Driven Economy provides a ‘one-stop’ collection of classic and contemporary contributions to facilitate ready access to the most influential and important scholarship from a wide range of theoretical and practical perspectives. As well as gathering the best work of economists, the collection also incorporates insights from disciplines including Management Science, Law, Sociology, Anthropology, Psychology, and Political Science.

    The Economics of Knowledge and the Knowledge-Driven Economy is compiled by Cristiano Antonelli (editor of Routledge’s earlier collection on The Economics of Innovation (2008) (978-0-415-42677-0)) and Paul A. David, leading scholars in the field. The Economics of Knowledge and the Knowledge-Driven Economy is fully indexed and has a newly written introduction which places the gathered material in its intellectual context. It is an essential work of reference and is destined to be valued by scholars and students as a vital one-stop research resource.



    1. R. R. Nelson, ‘The Simple Economics of Basic Scientific Research’, Journal of Political Economy, 1959, 67, 297–306.

    2. K. J. Arrow, ‘Economic Welfare and the Allocation of Resources for Invention’, in R. R. Nelson (ed.), The Rate and Direction of Inventive Activity: Economic and Social Factors (Princeton University Press, 1962), pp. 609–25.

    3. K. J. Arrow, ‘Classificatory Notes on the Production and Transmission of Technological Knowledge’, American Economic Review, 1969, 59, 29–35.

    4. P. Dasgupta and P. A. David, ‘Toward a New Economics of Science’, Research Policy, 1994, 23, 487–521.


    5. R. J. Caballero and A. Jaffe, ‘How High are Giants’ Shoulders: An Empirical Assessment of Knowledge Spillover and Creative Destruction in a Model of Economic Growth’, in O. Blanchard and S. Fischer, S. (eds), NBER Macroeconomics Annual 1993, Vol. 8 (MIT Press, 1993), pp. 15–86.

    Tacit versus Codified

    6. K. J. Arrow, ‘The Economic Implications of Learning By Doing’, Review of Economic Studies, 1962, 29, 155–73.

    7. R. Cowan and D. Foray, ‘The Economics of Codification and the Diffusion of Knowledge’, Industrial and Corporate Change, 1997, 6, 3, 595–622.


    8. E. Von Hippel, ‘Sticky Information and the Locus of Problem-Solving: Implications for Innovation’, Management Science, 1994, 40, 429–39.

    9. E. Von Hippel, ‘Economics of Product Development By Users: The Impact of Sticky Local Information’, Management Science, 1998, 44, 629–44.

    The Structure of the Knowledge Base

    10. L. Nesta and P. P. Saviotti, ‘Coherence of the Knowledge Base and the Firm’s Innovative Performance: Evidence from the Pharmaceutical Industry’, Journal of Industrial Economics, 2005, 53, 123–42.

    11. J. Krafft, F. Quatraro, and P. P. Saviotti, ‘The Knowledge Base in Biotechnology: A Social Network Analysis of Biotechnology’, Economics of Innovation and New Technology, 2011, 20, 5, 445–75.


    12. H. A. Simon, ‘The Architecture of Complexity’, Proceedings of the American Philosophical Society, 1962, 106, 467–82.

    13. R. N. Langlois, ‘Modularity in Technology and Organization’, Journal of Economic Behavior & Organization, 2002, 49, 1, 19–37.

    14. R. Sanchez and T. T. Mahoney, ‘Modularity Flexibility, and Knowledge Management in Product and Organization Design’, Strategic Management Journal, 1996, 17, 63–76.

    15. H. A. Simon, ‘Near Decomposability and the Speed of Evolution’, Industrial and Corporate Change, 2002, 11, 3, 587–99.

    Knowledge as a Systemic Property

    16. P. David, ‘Knowledge, Property and the System Dynamics of Technological Change’, in L. S. Summers and S. Shah (eds.), Proceedings of the World Bank Annual Conference on Development Economics (International Bank for Reconstruction and Development, Washington D.C., 1993), pp. 215–48.


    From Knowledge Spillovers

    17. A. Pakes and Z. Griliches, ‘Patents and R&D at the Firm Level: A First Look’, in Z. Griliches (ed.), R&D, Patents, and Productivity (University of Chicago Press, 1984), pp. 55–72.

    Imitation, Knowledge Transfer, and Limited Appropriability

    18. E. Mansfield, M. Schwartz, and S. Wagner, ‘Imitation Costs and Patents: An Empirical Study’, Economic Journal, 1981, 91, 907–18.

    19. W. M. Cohen and D. A. Levinthal, ‘Absorptive Capacity: A New Perspective on Learning and Innovation’, Administrative Science Quarterly, 1990, 35, 128–52.

    20. Lee G. Branstetter and Mariko Sakakibara, ‘When Do Research Consortia Work Well and Why? Evidence from Japanese Panel Data’, American Economic Review, 2002, 92, 1, 143–59.

    External Knowledge as a Complementary Input

    21. B. Johansson and H. Loof, ‘R&D Strategy, Metropolitan Externalities and Productivity: Evidence from Sweden’, Industry and Innovation, 2014, 21, 141–54.

    22. B. Cassiman and R. Veugelers, ‘In Search of Complementarity in the Innovation Strategy: Internal R&D and External Knowledge Acquisition’, Management Science, 2006, 52, 68–82.

    Knowledge Interactions: Global versus Local

    23. C. Antonelli and G. Scellato, ‘Complexity and Innovation: Social Interactions and Firm Level Productivity Growth’, Journal of Evolutionary Economics, 2013, 23, 77–96.

    24. R. Cowan, N. Jonard, and J. B. Zimmermann, ‘Bilateral Collaboration and the Emergence of Innovation Networks’, Management Science, 2007, 53, 7, 1051–67.

    25. F. Montobbio and V. Sterzi, ‘Inventing Together: Exploring the Nature of International Knowledge Spillovers in Latin America’, Journal of Evolutionary Economics, 2011, 21, 53–89.

    Knowledge as a Collective Activity

    26. R. C. Allen, ‘Collective Invention’, Journal of Economic Behavior and Organization, 1983, 4, 1, 1–24.

    27. J. Howells, J. Andrew, and K. Mali, ‘The Sourcing of Technological Knowledge: Distributed Innovation Processes and Dynamic Change’, R&D Management, 2003, 33, 395–409.

    The Knowledge-Generation Function

    28. A. Jaffe, ‘Technological Opportunity and Spillovers of R&D: Evidence from Firms’ Patents, Profits, and Market Value’, American Economic Review, 1986, 76, 5, 984–1001.

    29. Z. Griliches, ‘Patent Statistics as Economic Indicators: A Survey’, in Z. Griliches (ed.), R&D and Productivity: The Econometric Evidence (University of Chicago Press, 1984), pp. 287–343.

    30. M. L. Weitzman, ‘Hybridizing Growth Theory’, American Economic Review, 1996, 86, 207–12.

    31. L. Fleming, ‘Recombinant Uncertainty in Technological Search’, Management Science, 2001, 47, 1, 117–32.

    32. B. Crépon, E. Duguet, and Jacques Mairesse, ‘Research, Innovation and Productivity: An Econometric Analysis at the Firm Level’, Economics of Innovation and New Technology, 1998, 7, 2, 115–58.


    From Spillovers to the New Growth Theory and Beyond

    33. Z. Griliches, ‘Issues in Assessing the Contribution of Research and Development to Productivity Growth’, Bell Journal of Economics, 1979, 10, 92–116.

    34. P. M. Romer, ‘The Origins of Endogenous Growth’, Journal of Economic Perspectives, 1994, 8, 3–22.

    35. J. Adams, ‘Learning Internal Research and Spillovers’, Economics of Innovation and New Technology, 2006, 15, 5–36.

    36. J. S. Metcalfe, ‘Knowledge of Growth and the Growth of Knowledge’, Journal of Evolutionary Economics, 2002, 12, 3–15.

    37. C. Antonelli, ‘Knowledge Governance, Pecuniary Knowledge Externalities and Total Factor Productivity Growth’, Economic Development Quarterly, 2013, 27, 62–70.

    The Knowledge-Driven Firm

    38. R. R. Nelson and S. G. Winter, ‘Toward an Evolutionary Theory of Economic Capabilities’, American Economic Review, 1973, 63, 2, 440–9.

    39. B. Wernerfelt, ‘A Resource-Based View of the Firm’, Strategic Management Journal, 1984, 5, 171–80.

    40. J. C. March, ‘Exploration and Exploitation in Organizing Learning’, Organization Science, 1991, 2, 71–87.

    41. B. Kogut, ‘The Network as Knowledge: Generative Rules and the Emergence of Structure’, Strategic Management Journal, 2000, 21, 3, 405–25.

    42. S. G. Winter, ‘Understanding Dynamic Capabilities’, Strategic Management Journal, 2003, 24, 10, 991–5.

    43. S. Brusoni, A. Prencipe, and K. Pavitt, ‘Knowledge Specialization, Organizational Coupling, and the Boundaries of the Firm: Why Do Firms Know More Than They Make?’, Administrative Science Quarterly, 2011, 46, 4, 597–621.

    44. P. P. Patrucco, ‘The Evolution of Knowledge Organization and the Emergence of a Platform for Innovation in the Car Industry’, Industry and Innovation, 2014, 21, 3, 1–24.

    The Knowledge Economy

    45. M. Abramovitz and P. A. David, ‘Technological Change and the Rise of Intangible Investments: The US Economy Growth Path in the Twentieth Century’, OECD, Employment and Growth in the Knowledge Based Economy (Paris, 1996), pp. 35–60.

    46. K. J. Stiroh, ‘Are ICT Spillovers Driving the New Economy?’, Review of Income and Wealth, 2002, 48, 1, 33–57.

    47. R. Shearmur and D. Doloreux, ‘Innovation and Knowledge-Intensive Business Service: The Contribution Knowledge-Intensive Business Service to Innovation in Manufacturing’, Economics of Innovation and New Technology, 2013, 22, 751–74.

    48. F. J. Buera and J. P. Kaboski, ‘The Rise of the Service Economy’, American Economic Review, 2012, 102, 2540–69.

    49. C. Antonelli and C. Fassio, ‘The Economics of the Light Economy: Globalization, Skill Biased Technological Change and Slow Growth’, Technological Forecasting & Social Change, 2014, 87, 89–107.


    Knowledge Governance

    50. P. A. David, ‘The Historical Origins of "Open Science": An Essay on Patronage, Reputation and Common Agency Contracting in the Scientific Revolution’, Capitalism and Society, 2008, 3, 2, 1–106.

    The Debate on IPR

    51. B. Coriat and B. Weinstein, ‘Patent Regimes and the Commodification of Knowledge’, Socieconomic Review, 2012, 10, 267–92.

    52. S. Scotchmer, ‘Standing on the Shoulders of Science: Cumulative Research and the Patent Law’, Journal of Economic Perspective, 1991, 5, 1, 29–41.

    53. M. A. Heller and R. S. Eisenberg, ‘Can Patents Deter Innovation? The Anticommons in Biomedical Research’, Science, 1998, 280, 698–701.

    54. P. A. David, ‘Mitigating "Anticommons" Harms to Research in Science and Technology: New Moves in "Legal Jujitsu" Against Unintended Adverse Consequences of the Exploitation of Intellectual Property Rights on Results of Publicly and Privately Funded Research’, WIPO Journal, 2010, 1, 58–73.


    55. B. H. Hall and J. van Reenen, ‘How Effective are Fiscal Incentives for R&D? A Review of the Evidence’, Research Policy, 2000, 29, 4–5, 449–69.

    56. B. Loskin and P. Mohnen, ‘How Effective are Level-Based R&D Tax Credits? Evidence from the Netherlands’, Applied Economics, 2012, 44, 12, 1527–38.


    57. E. Mansfield, ‘Academic Research Underlying Industrial Innovations: Sources, Characteristics, and Financing’, Review of Economics and Statistics, 1995, 77, 55–65.

    58. D. Audretsch and P. Stephan, ‘Company-Scientist Locational Links: The Case of Biotechnology’, American Economic Review, 1996, 86, 641–52.

    59. P. E. Stephan, ‘The Economics of Science’, Journal of Economic Literature, 1996, 34, 199–235.

    60. A. Geuna, The Economics of Knowledge Production (Edward Elgar, 1999) (extract).

    61. C. Autant-Bernard, ‘Science and Knowledge Flows: Evidence from the French Case’, Research Policy, 2001, 30, 1069–78.

    62. A. Della Malva and M. Carree, ‘The Spatial Distribution of Innovation: Evidence on the Role of Academic Quality for Seven European Countries’, Economics of Innovation and New Technology, 2013, 22, 5, 601–18.

    The Markets for Knowledge and Venture Capitalism

    63. B. H. Hall, A. Jaffe, and M. Trajtenberg, ‘Market Value and Patent Citations’, Rand Journal of Economics, 2005, 36, 1, 16–38.

    64. A. Arora, A. Fosfuri, and A. Gambardella, ‘Markets for Technology and their Implications for Corporate Strategy’, Industrial and Corporate Change, 2001, 10, 2, 419–51.

    65. R. N. Langlois, ‘The Vanishing Hand: The Changing Dynamics of Industrial Capitalism’, Industrial and Corporate Change, 2003, 12, 351–85.

    66. K. Laursen and A. Salter, ‘Open for Innovation: The Role of Openness in Explaining Innovation Performance Among UK Manufacturing Firms’, Strategic Management Journal, 2006, 27, 131–50.

    67. G. Avnimelech and M. Teubal, ‘Venture Capital Start-Up Co-evolution and the Emergence and Development of Israel’s New High Tech Cluster’, Economics of Innovation and New Technology, 2008, 13, 1, 33–60.


    Cristiano Antonelli, University of Turin, Italy