MPE E A G EG ME
SCHU T RI N ROWTH R I S
r A
C istiano ntonelli, Dipa timento i conomia e Statistica, Unive sità ir d E r d r
To ino dan BRICK (Bu eau of Resea ch in Innovation Complexity anr r d
d r A r
Knowle ge), Collegio Ca lo lbe to.
ABSTR CTA
d d r d d
The a vances of the economics of knowle ge p ovi e the tools to stu y
r r r
the changing o ganization of economic systems. Schumpete ian g owth regimes i entify the gove nance mechanisms of the gene ation an d r r d
d r
exploitation of knowle ge as the engine of economic g owth. The
d d r r d r r
limite exhaustibility an app op iability of knowle ge equi e specific
rd r d r d r
coo ination p oce u es at the system an the fi m level to take
d r r r r
a vantage of the potential fo inc easing etu ns. The changing mix of
r d r d
such gove nance mechanisms enables to i entify the eme gence an decline of iffe ent g owth egimes: the ent ep eneu ial g owth egime, d r r r r r r r r
r r r r d d r r
the co po ate g owth egime an the knowle ge g owth egime.
E E GE APP P A E GE
K Y WORDS. KNOWL D RO RI BILITY; KNOWL D
EXH USTIBILITY; KNOWL DA E GE GOV RN NC ; CRE A E EATIVE
E P E G EG ME
R S ONS ; ROWTH R I S.
1 .INTRODUCTION
r r r d r r
The cont ibutions of Joseph Schumpete p ovi e the basic efe ence to a
r r d r r r
va iety of effo ts ma e by the lite atu e to elabo ate a systemic
r r r rd d d r r d
inte p etation of the gene al set of inte epen ent an st uctu e
r rd d
inte actions, coo ination an institutional mechanisms that qualify the
d r
con itions of the economic systems into which the gene ation, exploitation
d d r d
an accumulation of technological knowle ge, the int o uction of
d r r d r r
technological an st uctu al change, an long te m economic g owth take
r r
place. Schumpete was in fact, at the same time, well awa e of the
r r d d d
systemic quality of the Wal asian app oach an yet convince of the nee
d
to go beyon its static limitations.
r r r d
The notion of Schumpete ian g owth egimes buil s upon his attempts to
r d d r r
elabo ate a systemic an yet ynamic account of the fo ces at wo k in
r r r d d
r d d 2
ea ly eca es of the 0th centu y in u ope an eventually in the Uniter E r d d
States.
r r d
Ca eful ea ing of The Theo y of conomic Development d r E an Capitalism r d
Democ acy an Socialism togethe withr Business Cycles an the 947d 1 essay “The c eative eaction in economic histo y” r r r r p ovi es the tools tod
r r r r r
elabo ate a “histoi e aisonnèe” of the st uctu al changes in the
r r d d
o ganization of the gene ation an exploitation of technological knowle ge
d r d r r
an the int o uction of technological change that pa allel the shift ac oss diffe ent i eal types of g owth egimes, base upon the analysis of ther d r r d
r d r r d
changing mechanisms of gove nance of the limite app op iability an
d r A
exhaustibility of knowle ge as the engine of economic g owth ( ntonelli d 2 1
an Link, 0 5).
r r r d r d
The notion of Schumpete ian g owth egime enables to un e stan the
d r d r
en ogeneity of g owth an change. It shows how the o ganization of the
r r d
system shapes the gove nance of the gene ation, exploitation an
d d
accumulation of technological knowle ge, an hence the stochastic dete minants of the c eative eactionr r r that lea s to the int o uction ofd r d innovations. Schumpete ian g owth egime focuses the analysis on ther r r
r d
mechanisms by means of which the gene ation, exploitation an
d d r r
accumulation of knowle ge take place an shape the c eative eaction that
r r d d r r r r r r
changes fi ms, p o uct an facto ma kets, the st uctu al cha acte istics of
d d r d
the system an its mesoeconomic an mac oeconomic ynamics A 2 11 2 1 2 1 2 1
( ntonelli, 0 , 0 7, 0 8, 0 9).
A ll changes in the st uctu e, o ganization, technology an knowle ge r r r d d
r r r d r d
gove nance a e inte twine not only at the fi m level, but also an
r r d r r r r
p ima ily at the system level an eshape the enti e a chitectu e of
r d r r rd d
inte actions an t ansactions with majo effects on both upwa an downwa complementa ities ( e ez, 0 0; Dopferd r P r 2 1 r Potts yka, 0 5). P 2 1 A rs F eeman an Louca note : The st uctu al t ansfo mation a ising f om d d " r r r r r r
d r r r d d
(these) new in ust ies, se vices, p o ucts an technologies is inevitably
d r d d
associate with the combination of o ganizational innovations nee e to design, use, p o uce, an r d d d rist ibute them" (F eeman anr d Louçã, 2 1 100 : 47).
2 . THE ANT C D NTSE E E
Prelimina y attempts to implement the Schumpete ian legacy on g owthr r r regimes have been ma e with the notions of “Technological Regimes”,d
A d
“National Systems of Innovation”, “ ccumulation Regimes” an
r r
“Va ieties of Capitalism”. They sha e the basic intuition that the
r d d r d
gene ation of technological knowle ge an the consequent int o uction of
r d r d r r
innovations a e ete mine by the systemic cha acte istics into which
r r dd d r r r
fi ms a e embe e . Let us ecall then b iefly in tu n.
r r d d
The notion of “Technological Regime” has been fi st int o uce by Nelson
d r 1 2 d r d r r d
an Winte ( 98 ) an en iche by the lite atu e that buil s upon the
d r r 1 2 M r d r
foun ing cont ibutions by Winte ( 984; 006), ale ba an O senigo
1 r M r r r 2 d 2 1
( 997) (B eschi ale ba O se nigo, 000). Castellacci an Zheng ( 0 0)
r d r r A rd
p ovi e an excellent synthesis of this lite atu e. cco ing to Castellacci
d 2 1 r r d d
an Zheng ( 0 0) technological egimes a e efine exclusively by the
d r r r r
in ust y specific cha acte istics of the technological envi onment in which
d
innovative activities take place such as i) the cumulativeness con itions,
d r r d
the extent to which technological activities an pe fo mances buil upon
d d r
the accumulate stock of knowle ge of each fi m; ii) the levels of
r d d d
technological oppo tunities efine as the likelihoo that R&D activities
d r r r
may yiel an innovative output; iii) exte nal sou ces of oppo tunities define as the amount of knowle ge exte nalities upon which fi ms mayd d r r
r r d A d
access; iv) app op iability con itions. s Castellacci an Zheng state: “In a
r r
nutshell, the main insight of this app oach is that the innovative st ategies
d r r r r r r d r
an activities of ente p ises va y g eatly ac oss secto s because in ust ies diffe fun amentally in te ms of the p ope ties of thei technologicalr d r r r r regimes” (Castellacci an Zheng, 0 0: 8 5). d 2 1 1 3
A s it seems clea the notion of “Technological Regimes” explo es ther r dete minants of the va iance of the ates of innovative activity at ther r r
d r d r r
in ust ial levels with special attention to the iffe ences in the ates of
r d r d r r d
int o uction of innovations ac oss in ust ial secto s. The con itions of
d r d r r r r rd d
knowle ge gene ation an app op iation a e ega e as the main dete minants of the inte in ust ial va iance of innovative levels. Ther r d r r
r r r
Technological Regime app oach makes an impo tant cont ibution to the
r r r d r r d d
Neo-Schumpete ian lite atu e that ha p ima ily focuse the types an
d r d
intensity of competition an specifically the size of fi ms an the levels of
r r r
r r Technological Regime app oach, in fact, calls attention on the ole of the
r r d d r r
cha acte istics of knowle ge as the ete minants of the ates of innovation.
r r
It is wo th noting that the Technological Regime app oach is fully silent
d r d r
about the systemic ete minants of the i ection of technological change.
r r d d
The “National Systems of Innovation” app oach elabo ate by Lun vall
1 2 d 1 3 d
( 99 ) an Nelson ( 99 ) exten s the scope of analysis of the
r
“Technological Regime” app oach with a systemic analysis of the
r r
mechanisms put in place at the national level to suppo t the gene ation of
d d r r d r d
knowle ge inclu ing the ole of se vice in ust ies an especially of the
r r r r r r
public esea ch system. The ole of the Unive sity as the p ime supplie of
d d r r r
basic knowle ge is emphasize . The inte action between esea ch
d d d r r d r r d r r
activities fun e an pe fo me by the p ivate secto an the esea ch
rr d r r d r
activities ca ie out by the public esea ch system is analyze as a majo
r r d r
facto in the gene ation of new knowle ge. The complementa ity between
d r r r r r d r
the iffe ent laye s of esea ch activities whethe basic, applie o development is analyze in epth togethe with the ivision of labo d d r d r
d r r r
between the public an the p ivate secto in thei implementation (Fage be g an Sapp ase t, 0 ) .r r d r r 2 11
r rr d r r
The “National Systems of Innovation” app oach has sti e much esea ch
d d r
on the mechanisms an channels of knowle ge inte actions not only
r d r r r r r
between fi ms an esea ch cente s but also among fi ms. The explo ation
r d r d d
of the abso ption of knowle ge spillove s has enable to i entify, next to
r d r r r
the ho izontal imitation within the same in ust y, the c ucial ole of
r r r d r r 1
ve tical use -p o uce inte actions within value chains (Von Hippel, 988, 1994, 1998) and the relevance of institutional, o ganizational, r
d r r r r
technological, an most impo tantly, geog aphic p oximity in suppo ting
d r d r
the access an use of exte nal knowle ge as an input in the gene ation of
d 2
new knowle ge (Boschma, 005). The “National Systems of Innovation”
r d r
app oach enables to apply the mechanisms of the knowle ge gove nance
r r 2 1 A 2 1
app oach (Ost om, 0 0; ntonelli, 0 5)
r
The “National Systems of Innovation” app oach complements the r
“Technological Regime” focusing the analysis on the ole of the systemic
r r d d r d
inte actions in the gene ation of knowle ge an in the int o uction of
d r r
innovations at the national an egional level. Both make an impo tant
r r d
cont ibution in calling attention on the ole of the systemic con itions that d r d rr d r d r
r d d d r
gene ation of knowle ge an hence efine the ates of innovation activity.
r r d r r
Both app oaches, howeve , o not take into account the c ucial ole of the relationship between finance an innovation an of in ust ial elations an d d d r r d
r r r A r
co po ate gove nance. s a matte of fact, both the notion of
d r
Technological Regimes an the notion of “Systems of Innovation” sha e
d r r r d
the focus on the ete minants of the ates of int o uction of innovations
d d r d r d r
an o not explo e the ete minants of the i ection of technological
r r d
change. Neithe one has the ambition to explo e the systemic con itions of
r d d d r
the elationship between the con itions of knowle ge fun ing, gene ation
d d r r r
an exploitation an the mac oeconomic pe fo mances of the system into
r r dd d A d
which fi ms a e embe e . The “ ccumulation Regime” an the
r r r r
”Va ieties of Capitalism” cont ibute to explo e these latte aspects.
M d d A
The notions of “Regulation o e” an “ ccumulation Regime” have been
r d d d d E d r A rd
int o uce an implemente by the “ cole e la egulation”. cco ing to Aglietta: “ r Fo the stu y of a mo e of p o uction will seek to isolate thed d r d dete minant elationships that a e ep o uce in an th ough the socialr r r r r d d d r
r r r r r r d d d
t ansfo mation, the changing fo ms in which they a e ep o uce , an the reasons why this ep o uction is accompanie by uptu es at iffe ent r r d d r r d r
d r d r
points of the social system. To speak of a mo e of p o uction is to t y to
r r d r r r
fo mulate in gene al laws the ways in which the ete minant st uctu e of a r r d d A 1 2 12 13
society is ep o uce .” ( glietta, 976/ 000: - ).
r d d
This app oach has been implemente systematically to istinguish between Pre-Fo ist, Fo ist anrd rd d Post-Fo ist ccumulation egimes. ccumulationrd A r A
r d d r M r d r d
Regimes a e i entifie by six key featu es: i) oneta y an c e it relationships; ii) the wage-labou nexus; iii) the type of competition; iv) r
r d r d d d
the elationship between wages an p o uctivity; v) the mo e of a hesion
r r d
to the inte national egime; vi) the types an tools of economic policy.
A r r r d r
The notion of “ ccumulation Regime” is fa iche an mo e inclusive d
than the “Technological Regimes” an the “National Systems of
r r
Innovation” app oaches. It pays attention to the ole of the financial system
d r d r r d r r
an gene ally to the iffe ent mechanisms of p ovi ing financial esou ces
to innovation activities as well as to the levels of openness of economic
r r d d r r r
systems to inte national t a e an inte national financial ma kets. The co e
r d d r
of the analysis is p ovi e by the analysis of the mac oeconomic
r r d d d r r
r d r
the elationship between capital an labou , as well as between
d r r d
management an employees plays a cent al ole in the i entification of diffe ent “ ccumulation Regimes”. The notion of “ ccumulationr A A
r d
Regimes” pays much attention to the wage-labou nexus an to the relationship between wage an p o uctivity. cco ing to Boye ( 988a: d r d A rd r 1
2 d 3 r d d r
7 an 7 ) “the wage-labou nexus is efine by a cohe ent system encompassing the following five components: the types of means of
r d d r r r r d d
p o uction an cont ol ove wo ke s; the technical an social ivision of
r d r d d r
labou an its implications fo skilling/ eskilling; the eg ee of stability of
r r d r d
the employment elation, measu e , fo example, by the spee of
d r d d r d r d
employment u ation a justments; the ete minants of i ect an social
r r r d r
wages in elation to the functioning of labou ma kets an state welfa e
r d rd r r r d
se vices; the stan a of living of wage-ea ne s in te ms of the volume an
r d
the o igin of the commo ities they consume.”
r 1 2 d r r
Boye ( 98 a an b) makes clea that cumulative g owth is possible when real wage income inc eases with p o uctivity. The actual evelopment ofr r d d
rd A r
the Fo ist “Regime of ccumulation” took place only when eal wage
d r
income coul inc ease so as to make possible the actual exploitation of the
d r d
economies of ensity stemming f om the extensibility of knowle ge. The distinction between p ice competition an oligopolistic competition is the r d
rd r Pr r r r d Pr
thi pilla . ice competition among small fi ms cha acte ize the
e-rd A rd d P rd
Fo ist ccumulation Regime” while the Fo ist an the ost-Fo ist
A r r r d
“ ccumulation Regimes” we e cha acte ize by oligopolisitic
d r d d r r r r d r d
competition, base upon p o uct iffe entiation whe e p ices a e e ive
r r d r r r
f om a ma k-up applie to ave age costs, among co po ations. E d r
In the analysis of the “ cole e la egulation” the nexus between
r d d d r r r r
p o uction an ist ibution plays a cent al ole also with espect to the
r d r d
analysis of the int o uction of new technologies. The int o uction of new
d d r r d
technologies is associate to investments following the Kal o ian t a ition
d d
of the eman -pull account of technological change. New vintages of
d r r
capital embo y –necessa ily- new technologies. The ate of investment is
d r r
the key ete minant of the ate of innovation.
r r d d
The poo analysis of the ole of technological knowle ge an of the
r A
innovation p ocess is the main limit of the notion of “ ccumulation
d
an at the same time necessa ily r embo ie in investments. This analysisd d
d r d d
may apply to un e stan ing the iffusion of innovations but fails to
d d r r d
i entify the actual ete minants of the gene ation of new technologies an
r d
of the int o uction of new technologies.
r A r r d
The st ength of the ccumulation Regime app oach on the othe han
r r r r
consists in the clea a ticulation of the elationship between given ates of
r d d r d d
gene ation of technological knowle ge an int o uction of innovations an
r r r
the actual ates of economic g owth. The main cont ibution of the Accumulation Regime app oach ests on the wage-labou nexus. Ther r r
d r d
analysis of the ete minants of investments enables in fact to avoi the dange s of technological ete minism. The ve y same wage-labou nexusr d r r r
d rd d d 2
lea to both the stagnation of the thi eca e of the 0th centu y an ther d
“ rt ente glo ieuses r “. The a ical iffe ence in te ms of g owth of output r d d r r r
d r d d r r d
an p o uctivity is foun in the shift f om p ofit-le -investment-to deman -le -investments. The quest fo p ofits le to sh ink wages and d r r d r d
r d d d r
consequently agg egate eman with the ep essive consequences
r d rd d d r r d r
expe ience in the thi eca e. The inc ease of wages expe ience afte
r d r d r r d d
WWII suppo te the api g owth of agg egate eman that, via the
r r d rr d dd d d
accele ato ynamics, sti e a itional investment that coul embo y new
d r r d r
technologies with consistent an self-suppo ting p o uctivity g owth that
r d r r r r d d d
in tu n enable to fu the inc ease the levels of agg egate eman .
r r A d r
The lite atu e on the “ ccumulation Regime” has misse to st ess the
r r d d r
st ict complementa ity with the eman -pull app oach to explaining the rate of innovation. The inc ease of the eman is expecte to augment the r d d d
r d r d
extent of the ma ket, hence the ivision of labou an the levels of
r d d
specialization that in tu n make the accumulation of knowle ge an the
r d r d r
int o uction of innovations not only possible but also mo e an mo e
convenient.
A r r r
The “ ccumulation Regime” app oach howeve is not able to account fo
r r r r d r d
the high levels of va iance ac oss egions, count ies, in ust ies, an
r r r d
histo ic time of the ates of gene ation of new technological knowle ge
d r d d r r
an the ates an i ection of technological change that a e the ultimate dete minants of the g owth of output an p o uctivity. This app oachr r d r d r
r d r d r
cont ibutes to un e stan ing the mac oeconomic context into which
r r
d r d r
Recent a vances in this line of analysis, howeve , enable to elabo ate the
r rd d d
“Cognitive Capitalism” app oach acco ing to the which a vance
r r d d
economies a e cente e upon knowle ge as the key component of the
r d r r 2 3 d
p ocess of accumulation an valo ization of capital (Ve cellone, 00 an 2006).
r r r
The Cognitive Capitalism app oach calls attention on the ole of lea ning
d d r r d d
by oing an lea ning by using in the gene ation of knowle ge neste into
d d r d r
the capitalization of knowle ge as a financial asset an p ovi es elevant
r r r d
cont ibution to a ticulating an analytical appa atus that allows to inclu e in
r r r d
the analysis the cha acte istics of the social o ganization of the knowle ge
r 2 P 1 r 2 3 r P
economy (Boye , 004; etit, 996; Ve cellone, 00 ; Co iat, etit, d r 2
Schme e , 006).
r r r
The Cognitive Capitalism app oach enables to g asp the ove lapping of
d d d
knowle ge an capital: knowle ge becomes capital by means of the
r d r d
inte face between knowle ge gene ation as a specialize activity
r d r r
inte twine with the wo king of financial ma kets that play the
d r d d
in ispensable ole of mechanisms of knowle ge exploitation an
r P 1 r d d r 1 d
valo ization ( etit, 996; Boye an Schme e , 990; Jin an Stough, 1998).
r r r r
The “Va ieties of Capitalism” app oach st esses the ole of the institutional
r r r
cohe ence of socio-economic systems in accounting fo thei economic
r r d 2 1 A 2 3 r
pe fo mances (Hall an Soskice, 00 ; mable, 00 )). Diffe ent types of
d d rd r rd
capitalism can be i entifie acco ing to thei coo ination mechanisms.
rd r d d r rd
Two coo ination mechanisms a e i entifie : ma ket-coo ination
d r r
mechanisms an institutional mechanisms. Fou main economic sphe es
r d d r r r d
a e investigate : i) in ust ial elations; ii) vocational t aining an e ucation;
r r r r r r
iii) co po ate gove nance; iv) inte -fi ms elations along value chains.
d r r r r d
In ust ial elations play a cent al ole in the analysis. They inclu e the
r r r r d r d
va iety of ba gaining elations ove wages an wo king con itions, the definition of incentives an the pa ticipation of wo ke s to the efinition of d r r r d
r d r d r r
the p oce u es an goals of the fi ms. Two alte native types of capitalism
r d d rd d r d r r
a e i entifie : the coo inate ma ket economies an the libe al ma ket
r r r r rd
r r r r
mechanisms, the latte use the ma ket place as the p ima y mechanism to rd
coo inate the system.
d G r 2 d r 2 3 r d
Hall an inge ich ( 004) an Kenwo thy ( 005:7 ) have elabo ate a
r r d
measu e of the levels of institutional cohe ence base upon the following
d r r r r d d r r
in icato s that focus on co po ate gove nance an in ust ial elations:
r r r d r
(a) sha e of co po ations base upon the sepa ation between management
d r r d r r d d r d
an cont ol, measu e by the ole manage s couple with ispe se
r d r r d r d r
sha ehol e s with espect to ominant sha ehol e s;
r r r d r
(b) elative size of the stock ma ket, measu e by the atio of the value of
r r r d r d r
public co po ations on g oss omestic p o uct of a count y;
rd r d r
(c) wage coo ination, measu e by the level at which unions no mally
rd d d r r
coo inate wage claims an the eg ee to which wage ba gaining is
r rd d
(st ategically) coo inate by unions;
d r r r r d r d d r
( ) labo tu nove , measu e by the sha e of employees who ha hel thei
r r
jobs fo less than one yea .
r r d r d
The levels of institutional cohe ence of a system a e ete mine by the
r d
levels institutional complementa ity: “two institutions can be sai to be
r r r r r r
complementa y if the p esence (o efficiency) of one inc eases the etu ns
r r r d 2 1 1
f om (o efficiency of) the othe ” (Hall an Soskice, 00 : 7).
r r d
The “Va ieties of Capitalism” app oach conten s that the levels of
r r
pe fo mances of an economic system is a function of its institutional
r r rd r r r
cohe ence: “When fi ms coo inate successfully, thei pe fo mances will
r d r r r r r
be bette , an the esult will be bette ove all economic pe fo mances”
d 2 1
(Hall an Soskice, 00 : 45).
r r r
The institutional cohe ence of a system influences its pe fo mances not
r d rd r d r
only in te ms of levels an quality of the coo ination p oce u es that r de uce isks, unce tainty, t ansaction costs, but also in te ms of innovative r r r r capabilities.
rd d r r r r d
Coo inate ma ket economies a e bette able to gene ate an exploit
r r r r
inc emental technological changes while libe al ma ket economies a e
r r d r d r r
bette able to gene ate an exploit a ical innovations. Co po ations
d r r d r r d r r d
manage by cont olling sha ehol e s that ely on skille wo ke s an
r r r d r r d r
d r r r d employment can take a vantage of lea ning p ocesses at the shop floo an
d d d r d r
capitalize on the tacit knowle ge accumulate an int o uce inc emental
r r d r d r d r r
innovations. Co po ations with ispe se sha ehol e s active in labo
r r r r d r
ma kets with high ates of tu nove couple with extensive equity ma kets
r r r
a e not only bette able to hi e talents with high levels of human capital,
d r r d
but also to take a vantage of the flows of new high-tech fi ms gene ate
r r r r
by ventu e capitalism, acqui e by means of take-ove s in equity ma kets
d r d r d r r
an int o uce a ical innovations. It is wo th noting that also the Va ieties
r r r d
of capitalism app oach falls sho t explo ing an assessing the systemic dete minants of the i ection of technological change.r d r
3 . SCHUMPE ET RI N ROWTH RA G EG ME A I S T WORK
r r d d
The g afting of the ecent a vances of the economics of knowle ge upon
r d r r
the Schumpete ian legacy an the ea ly attempts to a ticulate a systemic
r
analysis of the changing o ganization of innovation systems enables to
r r r r r
elabo ate a f amewo k that is able to highlight the cent al ole of the
r r r d
systemic cha acte istics that make possible the gene ation an exploitation
d d d r
of technological knowle ge as the fun amental con ition fo the
r d r r
int o uction of innovations as a c eative esponse.
r r r d r
Schumpete ian g owth egimes efine the alte native sets of systemic
d r r
con itions that shape the mechanisms of gove nance of the gene ation,
r r d d
app op iation, exploitation an accumulation of knowle ge as the engine r
of g owth that suppo ts the c eative eaction anr r r d the consequent
r d r r d d r r
int o uction of innovations that change fi ms, p o uct an facto ma kets,
r r d r d
the st uctu e of the system an its agg egate ynamics.
r Gr r
The notion of Schumpete ian owth Regimes integ ates in the
r r r
Schumpete ian f amewo k the achievements of the “Technological A
Regimes”, the “National System of Innovation”, the “ ccumulation
d r r d
Regime” an the “Va ieties of Capitalism” app oaches an augments them
d d
with the a vances of the economics of knowle ge that enable the
r r d r
app eciation of the systemic p ocesses that qualify the fun ing, gene ation,
r r d d r
app op iation, accumulation an exploitation of knowle ge a new c ucial
r d r d
laye of analysis. In so oing it f ames the systemic an institutional
d d
con itions that enable to take a vantage of the potential capabilities of
d r r r r d
knowle ge to make the eaction of fi m c eative, hence int o uce
d r r r d
innovations an inc ease the levels of total facto p o uctivity at the
r Gr d
d d r r d con ucive con itions that make the c eative esponse possible an
r r r d
elabo ate thei implications both at the fi m an the system level.
d d r r
The economics of knowle ge since its inception an all the mo e afte its recent a vances, p ovi e the tools to g asp the d r d r dynamics of the
r r d
mechanisms put in place to o ganize the gene ation an exploitation of
d d r r
knowle ge as the “special” goo that is at the o igin of economic g owth
1 Arr 1 2 d 1 A 2 1
(Hayek, 945; ow, 96 an 969; ntonelli, 0 9).
r r d d r r d
The special p ope ties of knowle ge i.e. its limite app op iability an
d d r d r
exhaustibility, an its ual ole as the output of a knowle ge gene ation
d r d r r
function an an input of the technology p o uction function, t igge
out-r d d r
of-equilib ium con itions because knowle ge exte nalities -with
r r d r d r
app op iate knowle ge gove nance mechanisms- enable the secon a y use
d r d d
of existing knowle ge as an input in the gene ation of new knowle ge an
r r r d
enable to inc ease the levels of total facto p o uctivity at the system level
r r r r r r
that a e la ge the la ge the gap between the equilib ium cost of
d d A 2 1 2 1 2 1
knowle ge an its actual costs ( ntonelli, 0 7, 0 8, 0 9).
d r
The economic implications of the analysis of the knowle ge gene ation
d r r r r
an valo ization p ocesses a e most impo tant, not only at the
r r r r
mic oeconomic, but also at the mac oeconomic level. The cha acte istics
d r r r r r
of the knowle ge gene ation p ocess that a e elevant at the agg egate level
r d d
a e: i) knowle ge is at the same time the output of the knowle ge
r r r d
gene ation activities that a e at the co e of the new knowle ge economy;
d r d r
ii) an an essential input into the p o uction function of all the othe
d r d r d d
goo s. The app eciation of the ual natu e of knowle ge is in ispensable
r r d r
to g asp its mac oeconomic implications; iii) knowle ge gene ation is a
r r r r r r r d
labo intensive p ocess whe e howeve labo is cha acte ize by highly
d r d r r r r
specific skills an int insic i iosync atic featu es. C eative labo is not
d d r d r r
abun ant an is itself the esult of tough selection an t aining p ocesses.
r r r r r
The income of c eative wo ke s is high as the pa ticipation to the ents
d d
associate to the capitalization of knowle ge complements the low wages;
r d r r d r
iv) the gene ation of knowle ge equi es sophisticate outines both at the
r d d
fi m level an at the system level; v) the stock of existing knowle ge
d r r r r
-capitalize as an asset- is a cent al input that eceives a la ge sha e of the revenue; vi) the quasi-ma kets fo knowle ge the quasi-ma kets for r d r r
d r
definition of the p ice of knowle ge inclu es substantial ents ( ntonelli, r d d r A 2 1 2 1 2 10 7; 0 8; 0 9).
Let us analyze the wheels of the mechanisms by means of which the
d r r d d d d r
limite app op iability an exhaustibility of knowle ge an its ual ole as
d r r d r r r
both an input an an output, may t igge ynamic inc easing etu ns in detail.
r r d d
The la ge is the knowle ge output at each point in time an -because of its
d d r r r r
limite exhaustibility an app op iability- the la ge is the stock of
quasi-d 1 r r
public knowle ge at time t+ . The la ge the stock of quasi-public
d d r r d r d
knowle ge an -with app op iate knowle ge gove nance con itions in the
r d r d
system that e uce abso ption costs an enable to effective access to it- the
r r d d r
lowe is the cost of exte nal knowle ge in the knowle ge gene ation 1
function at time t+ .
r r d r
The ecombinant gene ation of technological knowle ge elies on the
d d d r r
access an use of existing knowle ge. Knowle ge sha es all the int insic
r r d
cha acte istics of an essential facility as its use as an input is in ispensable
r r d r d
not only fo the p o uction of all the othe goo s -in the technology
r d r d r
p o uction function- but also in the gene ation of knowle ge. The va iety
d r
of the stock of quasi-public knowle ge matte s as much as its size: the
r r r d d d
la ge is the va iety of knowle ges each agent can access an use an the
r r d d r
la ge is the knowle ge output. Specifically, knowle ge output inc eases at
r r r r r r d
a mo e than p opo tionate ate with espect to the inc ease in the size an
r d
the va iety of knowle ge inputs.
Acco ing to the Schumpete ian f amewo k of analysis of the c eativerd r r r r response the access to knowle ge at costs below equilib ium enable fi ms d r r
r d r d d
to t y an cope with eme ging mismatches between expecte an actual
r d r d r d r 1 r
facto an p o uct ma ket con itions (Schumpete , 947) with a c eative response. Technological knowle ge is the key facto of the innovatived r
activity of an economic system.
r r d d d
The ate of int o uction of innovations epen s upon the levels of
r d r d r
pecunia y knowle ge exte nalities i.e. upon the con itions at which fi ms
d d rd r
can access an use technological knowle ge in o e to cope with the
r d d r d d r
r d r r d d ma ket con itions. When the st uctu al an institutional con itions of the
r d r
system make the gene ation of new knowle ge too expensive fi ms can
d r d
only implement a aptive esponses an move on the map of existing
d r r d d
isoquants. When, instea , the st uctu al an institutional con itions, of the
d d r
economic system inclu ing its mechanisms of knowle ge gove nance,
d d
enable the access an use of the stock of existing knowle ge at low costs
d r d r r r r r
an , consequently, pecunia y knowle ge exte nalities a e la ge, fi ms a e
r d d r r d
able to gene ate new knowle ge an implement a c eative eaction an r d
int o uce innovations.
r r d r
The lowe a e the costs of the stock of knowle ge – that ente s the recombinant knowle ge gene ation function as an in ispensable input- and r d d
r d r
the lowe is the cost of knowle ge as an input that ente s in the technology
r d r d Pr d r d
p o uction function of all the othe goo s. o uctivity g owth an hence
r d r
economic g owth is possible only when an if the potentialities fo dynamic inc easing etu ns, int insic to the i iosync atic cha acte istics ofr r r r d r r r
d d d d
knowle ge an especially its limite exhaustibility, cumulability an
d
extensibility, can be actually exploite .
d r d r d
The exploitation an gene ation of knowle ge a e the cause an the
d r r r r d
consequence of con itions that a e fa f om equilib ium. This ynamics is
r r r r d r d d r
fu the einfo ce by the fo ces that shape the en ogenous i ection of
d r r r A
technological change an the sea ch fo technological cong uence. t each
r r d
point in time the availability of a la ge stock of knowle ge that can be
d r d r d d
accesse at lowe costs in uces the int o uction of biase technological
d r d r d d
change i ecte at inc easing the output elasticity of knowle ge an its
intensity of use.
d r r d d r
The augmente levels of technological cong uence p ovi e by the bette
r d d
matching between the availability of the cheape input knowle ge an its
r d r d
inc ease output elasticity in the technology p o uction function, have the
r d d r d
multiple effects of: i) inc easing the eman fo knowle ge, hence its
r dd d
eventual gene ation with a itional expansion of the knowle ge stock, ii)
r r d d r
enhancing the levels of total facto p o uctivity an iii) st engthening its
r r r d r r d
app op iability in the global p o uct ma kets as ivals localize in less
d d r r r r r
d r d r r d
This ynamic p ocess exhibits the evi ent cha acte s of ynamic
r r r d d r r
inc easing etu ns well beyon the boun a ies of equilib ium. The
d r r r
systemic con itions that enable the gene ation, app op iation,
d d r r
accumulation an exploitation of knowle ge a e c ucial to enable the dynamic inc easing etu ns to take place. The notion of Schumpete ianr r r r
r r r d r d r
g owth egime p ovi es the tool fo the investigation of the iffe ent mix
d r r d r d
of knowle ge gove nance mechanisms that have been elabo ate to t y an
d r r r r d r
take a vantage of the scope fo such inc easing etu ns an thei
r r d r
implications fo the types of agg egate ynamics at wo k within economic systems.
d r r r r
Buil ing upon the Schumpete ian legacy, th ee g owth egimes can be
d d r r r r r r r r
i entifie : i) the ent ep eneu ial g owth egime; ii) the co po ate g owth regime; iii) the knowle ge g owth egimed r r (See Table ) 1 . Let us analyze
d then in etails. E A E 1 A E E INS RT T BL BOUT H R 3 1 . THE ENTR R N URI L ROWTH RP E E A G EG MEI r
The Schumpete ian The theo y of economic evelopment rr d p ovi es thed
d r r r r r r E r
basic tools to i entify the ent ep eneu ial g owth egime at wo k in u ope d 1
since the en of the 8th centu y.r
r d r
The gene ation of new knowle ge is the outcome of a bottom-up p ocess
d d r r
of accumulation of competence an tacit knowle ge that elies on lea ning
d d r r
by oing an lea ning by using. The bottom up gene ation of new d r
knowle ge elies heavily on the access to the stock of quasi-public
d d r d r d r
knowle ge ma e possible by p oximity within in ust ial ist icts.
d d d
Technological knowle ge is a collective goo an its accumulation takes
r r r d r
place p ima ily within the web of inte actions that take place in in ust ial d rist icts that a e the eposita y of technological knowle ge. r d r d
r r r r r r r
In the ent ep eneu ial g owth egime the e is a continuous flow of ent y of
r r r r r M r
new ent ep eneu s. The life cycle of fi ms is sho t. Like the a shallian r r r r r r d d d r fo est t ees, the su vival of fi ms is a e an the ecline an exit of fi ms is
rapi . nt ep eneu s acqui e thei competence on-the-job an a e oftend E r r r r r d r
r r r r r d
fo me s employees of incumbents. The sho t life cycle of fi ms e uces the
d r
accumulation of the stock of knowle ge within fi ms.
d r r r r r d r r
In ust ial elations a e cha acte ize by low levels of tu nove of highly
d r d r r
skille manpowe with istinctive c aft competences that etains the full
r r d r d
cont ol of thei competences an a e actively involve in the accumulation d
of tacit knowle ge ant its eventual exploitation.
r r
The innovation p ocess ests heavily upon the laws of accumulation of
d d d d r d r r r
tacit knowle ge an competence an is i ecte p ima ily upst eam
rd r d d r d r d
towa s the int o uction of new capital an inte me ia y goo s that make
r d r d
longe the value chain an inc ease the levels of specialization an division of labo . The ates of imitation an int o uction of inc emental r r d r d r
r r d d r r
innovation a e foste e by the low levels of knowle ge app op iability that
d r d d
is base upon the elevance of tacit knowle ge. The issemination of
d r
technological knowle ge is possible only by means of pe sonal
r d r d r
inte actions within in ust ial ist icts.
E r r r Gr r r
The nt ep eneu ial owth Regime exhibits the typical t aits of a p
ofit-d r d dr
le mechanism of accumulation: the int o uction of innovations is iven
r r 2 1
by the high levels of t ansient p ofitability (Lavoie, 0 7). Investments in
r r r dr r r d
upst eam activities in tu n a e iven by the ates of int o uction of
d r r d A r r
innovations an suppo t thei iffusion. t the system level the accele ato dynamics cont ibute the inc ease of the agg egate eman . The i ectionr r r d d d r
r r r d
of technological change is st ongly capital intensive fo two b oa set of reasons: i) the int o uction of capital intensive technological change is r d
d d r r d r r r r d
in uce by the st ong t en of inc ease of wages of wo ke s mo e an
r r r d d
mo e able to o ganize themselves by means of t a e-unions an acts as a
r r d r
fo m of meta-substitution of labo ; ii) the capital intensive i ection of
d r
technological change is consistent an complementa y with the
r d r r
int o uction of p ocess innovations that inc ease the levels of roun aboutness of the p o uction p ocess.d r d r
d r d
The ist ibution of income is highly skewe with high levels of both wage
d r r r r r d
an ent inequalities. Successful ent ep eneu s cash the sho t live
r r d r r r E r r r
ext ap ofits an the levels of etention a e ve y low. nt ep eneu ial
r r r d r
r d r r r r r r d thei wealth. In ust ial wages a e fa above the ave age in ag icultu e an
r d r
t a itional se vice activities.
r r r r r r r
The innovative banke is the p ima y sou ce of the financial esou ces fo
d r d r d r
new un e takings an plays a key ole in the selection an suppo t to the
r d r r
int o uction of innovations. The innovative banke elies on a web of
r r r r r
p ofessional competences to so t the p ojects that a e mo e likely to be
d r d r d d rr r
successful an pay back the c e its p ovi e by the bank. The e o s of
r d r r
exclusion a e limite by the quality of the po tfolio of p ofessional
r r r
competences that the innovative banke uses to so t the p ojects. The
r r r r r
innovative banke suffe s the int insic asymmet y: it cannot pa ticipate
r r d
into the p ofits of successful ventu es but is fully expose to the negative
r r r r
effects of the failu es in te ms of non pe fo ming loans. 3 2 . TH COR OR TE P A E GROWTH R EG MEI
1 2 r
The 94 cont ibution Capitalism Socialism an Democ acy r d r p ovi es thed
d r r r r r d
basic tools to i entify the co po ate g owth egime. The int o uction of r da ical innovations in the o ganization of fi ms, the sepa ation between r r r
r d r r r r r
owne ship an cont ol, the c eation of the co po ation a e the key
r r A r d d r
cha acte istics of the “ me ican capitalism” i entifie by Schumpete as
r d r
the majo institutional an o ganizational innovation that gave the US the
r d r d r r
inte national lea e ship in innovation an economic g owth since the ea ly 20th centu y. The gene ation of technological knowle ge takes placer r d
r r r r r
p ima ily within the co po ation whe e specific activities, eventually
d r d d d r r r
name Resea ch an Development, gui e by co po ate scientists a e d de icated to the int o uction of innovations.r d Exte nal knowle ge isr d relevant but to a lesse extent with espect to the nt ep eneu ial Regime r r E r r r
d r 1 2 d 1 (Chan le , 96 an 977).
r r r r r r d r r r d The co po ate g owth egime is cha acte ize by la ge fi ms, ule by
r d r r d r d
manage s, engage in oligopolistic ival y base upon systematic p o uct diffe entiation of final goo s in consume ma kets. In ust ial elations a er d r r d r r r
r r d r d d
cha acte ize by mass p o uction base upon assembly chains that engage
r r dd d
wo ke s with low levels of skills, competence a human capital, an
r d
pa ticipation to the accumulation of tacit knowle ge. Within the
r r r d r r r
co po ation, a co e of highly skille wo ke s with manage ial functions
r r d d
r r d r fo the int o uction of innovations within the context of long te m
r r r
co po ate st ategies.
d r r r r r
The i ection of technological change in the co po ate g owth egime is r
basically neut al. This neut ality howeve is the esult of two cont astingr r r r
r r d r d rd r d
fo ces. The innovative p ocess is mostly i ecte towa s the int o uction
r d r r r r A
of p o uct innovations that equi e highe levels of labo intensity. t the
r r r d
same, howeve , the effo ts to eap all the benefits of knowle ge
rd r d r d
extensibility, push towa s the int o uction of mass p o uction that requi es high levels of capital intensity.r
r r r r r r d d
In co po ations, wages a e above sho t te m p o uctivity levels pushe by
r r r d r r r
the st ong ba gaining powe of highly unionize labo that enable wo ke s
r r r r r 2 1 r r r
to sha e the la ge ma kup (Fa be , 0 8). Co po ate high wages, howeve ,
r r r r
a e efficiency wages as they enhance the pa ticipation of wo ke s to the
r r
accumulation of competence by means of lea ning p ocesses that enable
r d r d
the gene ation of technological knowle ge at costs below equilib ium an
r r r 1
suppo t the c eative esponse (Stiglitz, 974).
d r d r r d
The ynamics of wages is st ongly associate to the ates of int o uction d r r d
of innovations an inc ease of p o uctivity levels, not only by means of d
the accumulation of tacit knowle ge but also of the effects on the
r d d d d
agg egate eman : the eman pull comes into play. The high wage
r r r r r d
st ategy suppo ts the multiplie -accele ato ynamics within the loop
r d d d d d d
agg egate eman -investment- eman -pulle innovations that fee s the
r d r d d r r r
int o uction of p o uct an p ocess innovations. Inc easing wages suppo t
r d d r r d r r
the agg egate eman that in tu n pulls the int o uction of fu the
d r d d d
innovations an thei iffusion embo ie in the new vintages of capital
d r r r d
goo s b ought into the system by the accele ato ynamics of investment. r d
The wage-p o uctivity nexus has positive effects not only on the
r r r d r d
pe sistence of the ates of g owth of output an p o uctivity, but also on
d r d r
income ist ibution. Rent inequality eclines f om the high levels that
r r d E r r r
cha acte ize the nt ep eneu ial Regime.
d r r r r d r
The levels of knowle ge app op iability a e inc ease not only by mo e
r r r r r d r r
st ingent intellectual p ope ty ight egimes but also an p ima ily by
rr r r d d d
r d r r d
stemming f om the extensibility of knowle ge, p ime-move a vantages
d d r d r r
an economies of scale an scope- that e uce the isk of imitative ent y.
r r d r r r
Incumbents a e able to st etch the u ation of t ansient monopolistic ents
r r d d d d r
stemming f om the int o uction of innovation. The exten e u ation of
d d r r
the exclusive comman of technological knowle ge favo s the inte nal
d d d
accumulation of technological knowle ge an its systematic use to fee
r r d dd r
the pe sistent int o uction of a itional innovations. The sepa ation
r d r r r r r
between owne ship an cont ol enables manage s to etain la ge sha e of
r r d d r r
ext ap ofits an use them to fun inte nally the innovation p ocess.
r r r d
Competent teams of manage s elabo ate long te m planning evices to
r r d r rr
focus the inte nal gene ation of knowle ge, to so t the a ay of possible
r d r r r d
innovations gene ate by inte nal R&D labo ato ies an to implement
r rr r d r r
consistent innovative st ategies. The e o s of inclusion of ba p ojects a e r de uce by the quality of the inte nal teams highly competent in theid r r
d r d r
fiel s of expe tise an p actice.
r r r r r r r r r
Fo this ve y same eason, howeve , the co po ate g owth egime suffe s dramatically the e o s of exclusion. Inte nal selection p oce u es a e rr r r r d r r
d r d
unable to i entify a ical innovations that impinge upon technological
d r r r rr r
knowle ge(s) that a e fa away f om the cu ent co e competence of the r
manage ial teams.
r d d r d r d
The twin globalization of p o uct an financial ma kets un e mine the
d r r r r
viability an economic sustainability of the co po ate g owth egime. The
r d r r d
competition in global p o uct ma kets of the output manufactu e in low
r r r d r d
wage count ies often by global co po ations coul not be esiste by the
r d r d d r A
manufactu ing in ust y of a vance count ies. t the same time the
r r d r d
globalization of financial ma kets favo e the e uction of the levels of
r r d d d r r r d
inte national sp ea an the access of in ust ializing count ies to c e it
r d d r r
p ovi e by global financial institutions. The c eative esponse of
d d r d d r d d
a vance count ies coul not be base upon the int o uction of biase
d r d r d
technological change i ecte to inc ease levels of output elasticity of
d d r
fixe capital: the iffe ence in the cost of capital was not sufficient to
r d r
secu e an effective ivision of labo .
r d d dd d
The elative abun ance of the stock of quasi public knowle ge embe e
d d r d
r d r d r d
thei knowle ge gove nance mechanisms pushe the int o uction of
d r
knowle ge intensive technologies able to inc ease the technological
r d r d d r
cong uence an p ovi e the oppo tunity to implement a new
d r d d
specialization base upon the gene ation an exploitation of knowle ge as a financial asset.
3 3 . TH KNOWL DE E GE GROWTH R EG MEI
d r r d r
The knowle ge g owth egime is substituting in a vance count ies the
r r r r d 2
co po ate g owth egime since the en of the 0th centu y. r The knowle ged
r r r r d r d r
g owth egime is cha acte ize by the ve tical isinteg ation of the
r d d r r d
gene ation an exploitation of knowle ge that leaves the co po ation an
r d d d r
becomes the co e activity of a specialize knowle ge in ust y.
r d r d d r d d
Fo ce by the globalization of p o uct an capital ma kets, a vance
r d r d d r r
count ies have specialize in the upst eam an ownst eam ings of the
r r
value chains, focusing on: i) upst eam in the gene ation of technological
r r d d r r d d
know-how necessa y fo the esign an enginee ing of p o ucts an
r r d
p ocesses, ii) financing the gene ation of knowle ge as well as the
r d d d r r
p o uction cycle, an iii) ownst eam in the p ocess of enhancing tangible
d r d d d r d r r
goo s - physically p o uce in in ust ialize count ies - cont olling the
d r r r d r r d
wi e ange of activities anging f om logistics, ist ibution, ma keting, an
d r d d r d
a ve tising that can be efine as comme cial knowle ge.
r r d r r d d d d
The o ganization of the p o uction p ocess is fully e esigne : a vance
r r d r d
count ies etain the knowle ge-intensive phases both upst eam an downst eam the manufactu ing p ocess. Upst eam activities such as ther r r r
r d r r r d
gene ation of new knowle ge, its t ansfo mation into p ototypes an
d d r d d r d
a vance p o uction, as well as ownst eam ones, an the financial
r d d r r r
p ocess take place in a vance count ies. The manufactu ing p ocess itself
r d d d d r r
is e esigne with the i entification of knowle ge-poo activities that a e
d d d r r d d
assigne to plants locate in in ust ial count ies an knowle ge-intensive
r r r r d r r r
ones with highe equi ements in te ms of skills an la ge oppo tunities in
r r r r d d r
te ms of lea ning p ocesses a e kept in knowle ge abun ant count ies.
d d
The ecomposition of value chains in the global economy an the r de efinition of the inte national ivision of labo see eme ging count ies r d r r r
r d r r
take on the ole of in ust ial economies specializing in manufactu ing
r d d d d r r r d r
d r d r knowle ge, not only technological but also o ganizational an comme cial,
r r d d d
in the fo m of inte me iate goo s an especially intangible capital assets
d d r
an knowle ge intensive business se vices (KIBS).
d r d
The specialization in knowle ge intensive activities is the esult of a ual
r r d r r d
p ocess of ve tical isinteg ation of the chain value at the fi m level an
r d r r d r r
the inte national ivision of labo whe e in ust ializing count ies
r d r d d d
specialize in the manufactu ing in ust ies an a vance ones in KIBS. The
r d d d r
gene ation an exploitation of knowle ge, as a capital asset an a se vice,
r r d r r d d r
becomes the co e of sepa ate activities pe fo me by specialize fi ms.
r r d r d r
Ventu e capitalism p ovi es the suppo ting institutional an o ganizational
r r r
inf ast uctu e.
r r r r d r r d
The la ge lite atu e that explo es the igital economy afte the int o uction
r d
of the new info mation an communication technologies complements the
d d d r
a vances of the economics of knowle ge as it has enable to g asp the r da ical changes in the gene ation anr d use of knowle ge. Digitald
r d r r r
technologies, in fact, p ovi e the basic inf ast uctu e that enables to
r r r d d r d d
collect, et ieve, sto e the knowle ge items ispe se in the system an
r r d d r r r
manage the ecombination p ocess. In so oing the igital inf ast uctu e is
r r r d
the basic inf ast uctu e of the knowle ge economy ( rF øslev Jens, Maskell, 2 3 00 ; Johansson, Ka lsson, Stough, 006;r 2 Greenstein, G d r ol fa b, Tucke ,r 2 13 G d r Gr0 ; ol fa b, eenstein, Tucke , 0 5).r 2 1
r r d r
The new o ganization of the gene ation of knowle ge pa allels significant
d r d
changes in its exploitation an valo ization. The effects of the limite
r r d d r r
app op iability an exhaustibility of knowle ge a e most elevant not only
r d r
in its gene ation, but also in its exploitation an valo ization as they
d r r d r r d r d
engen e a ical info mation asymmet ies between ven o s an
r r r r d r
custome s. The wo king of the “quasi-ma kets” fo knowle ge acqui e the
r E d
typical t aits of the monopolistic competition. ach bit of knowle ge is a
r d d r d
unique p o uct that comman s quasi- ents. The exploitation an
r d r r d
valo ization of knowle ge take place in a context cha acte ize by a web
d r d r r r
of knowle ge inte actions an t ansactions whe e the p ice is contextual.
r r d d
Ventu e capitalism suppo ts the embo iment of new knowle ge in new
r r r d r r r
fi ms assisting thei bi th an selective g owth th ough the p ocess that
d r r r d
lea s to thei eventual ent y in the stock ma kets an the final acquisition
r r r r
d d d d r d
knowle ge lan scape embo ie by new fi ms base upon scientific
r r r d rd
ent ep eneu ship an become the new mechanism to coo inate the
r d d
gene ation an the exploitation of knowle ge capital.
r r r r r
Ventu e capital companies pe fo m the c ucial selective p ovision of: i) the
r r r d r r
necessa y financial esou ces with the i ect pa ticipation into the equity of
r d r r r r
new fi ms; an ii) management able to suppo t scientific ent ep eneu s in
r r d r d r d r
the enginee ing p ocess that lea s to the p o uction of p ototypes an thei
r r r d r
ma keting test. Ventu e capital companies ely on qualifie polya chies to
d r r d r rr r
i entify the p omising ventu es an a e able to minimize both e o s of
d M r r r r
exclusion an inclusion. a ket t ials enable to test the t ansfo mation of
d d d
scientific knowle ge into technological knowle ge an its actual scope of
d r r r r
application to the ownst eam economic activities un by co po ations.
r r r d r
Successful sta t-ups ente eventually the financial ma kets. The fun e s
r r
can cash the la ge capital gains that compensate fo the losses stemming
r r r r r r
f om the la ge sha e of failu es, Capital gains a e especially la ge when
r r r r
co po ations acqui e by means of take-ove s the new high-tech public
d r r r d r
companies an integ ate them into thei p o uction p ocess. The
acquisition of the new public companies complements if not substitutes the
r r r
inte nal pe fo mance of R&D activities. Financial investments rp ovi e thed deman fo the output of the new knowle ge in ust y.d r d d r
r r d d r r r r
KIBS a e able to t a e knowle ge as a se vice. The stock of p op ieta y
d r r d r
knowle ge is the p incipal input. Its application enables p ovi e s to
d d r d r
satisfy the specific an highly i iosync atic nee s of custome s. Intensive
r r r d r d r d
lea ning p ocesses, a ticulate in lea ning-by- oing, lea ning-by-using an
r r r r d r r d
lea ning by-inte acting within use -p o uce elations enable knowle ge
r d r d d d d r d
p o uce s to supply knowle ge as a e icate se vice applie to the
d r d r
specific nee s of custome s an at the same time to implement thei stock
r r r d d r d r
of p op ieta y knowle ge an to access elevant knowle ge exte nalities.
r r r d r
Scientific ent ep eneu ship is an in ispensable mechanism fo the effective
r r d d d r r
use of the oppo tunities p ovi e by the limite app op iability of
d r d r r r
knowle ge gene ate by scientific institutions. Scientific ent ep eneu ship
d d r r
is a istinctive an effective mechanism fo the gene ation of new
d r d
knowle ge by means of the ecombination of scientific knowle ge spilling
r d d r r r d
f om aca emic institutions an the necessa y va iety of othe knowle ge
d r d r d d
r r r r d r d r
Spillove ent ep eneu ship has been able to gui e the c eative est uction
r r d r d r r r
that has cha acte ize the shake-up of t a itional co po ate secto s like
rd r r d r r d d d
ha wa e elect onics an big-pha ma with the int o uction of igital an
r r r r
bio technologies that we e fa away f om the co e competence of r r
incumbent co po ations.
r r r r d r
Scientific ent ep eneu s t y an apply the esults of basic scientific resea ch achiever d in aca emic and d public esea ch cente s with the r r r
r r d r r r r d
c eation of sta t-ups. In ust ial elations within sta t-ups a e base on high
r r d d r r d d d
levels of tu nove an i ect pa ticipation of selecte an highly skille
r r d d r r
pe sonnel to the gene ation of new knowle ge an its t ansfo mation into r
p ototypes.
Employees pa ticipate i ectly not only to the gene ation of knowle ge but r d r r d
r
also to its exploitation: thei payment consists mainly if not exclusively in
r r d r d
sha es of the new ventu e ist ibute by means of stock options that
d r d r
associate i ectly the amount of wealth –as istinct f om income-d rist ibuted to wo ke s to the actual levels of capitalization of ther r
d r d d d d
knowle ge assets that have been p o uce an exploite by means of
d d r r r d
knowle ge an financial ma kets. The gove nance of sta tups is shape by
r r r r
the inc easing levels of sepa ation between the o iginal owne ship of
r r r d r r r
scientific ent ep eneu s an the inc easing ole of competent manage s
d d r r
secon e by ventu e capital fi ms.
d r r r r r d
The knowle ge spillove theo y of ent ep eneu ship i entifies the new
d r r r
channel by means of which knowle ge spillove a e actually useful. So fa ,
r r d d r r d r
the lite atu e ha focuse p ima ily the knowle ge inte actions that take
r r
place among incumbents, paying little attention to the ole of new come s
r d r r d d
as use s of knowle ge spillove s both to int o uce innovations an to
r d r r r d
gene ate new technological knowle ge. The la ge lite atu e base upon the
d r r r r r r
knowle ge spillove theo y of ent ep eneu ship explo es systematically
d d r r d r
how an why knowle ge spillove s p ovi e the oppo tunity to
r r r r r A dr d 2 1 d
ent ep eneu s to c eate a new fi m ( u etsch an Keilback, 0 7 an 2008). The ich an systematic evi ence collecte an analyze shows r d d d d d
r r r r d
clea ly how the ates of c eation of new fi ms an the flows of
r r r r d r r d d
ent ep eneu ship a e associate with the oppo tunities p ovi e by the regional concent ation of innovative activities an take place in sciencer d
d d r d d r r d base fiel s whe e the a vances of knowle ge have been mo e api
A dr d 2 1
( u etsch an Link, 0 8).
d r r r r r r
The knowle ge spillove theo y of ent ep eneu ship enables to g asp the
r r r r r
cent al ole of sta tups as the new st ategic inte face between the
r d r d r r
gene ation of scientific knowle ge, again cente e in the public esea ch
E r r r r r d r r
system -as in the nt ep eneu ial g owth egime- an the co po ation.
r d r
Sta tups fill the gap between science an technology, between pu e resea ch an applier d d resea ch anr d development. The p ocess of t ial an r r d
rr r r r d r r d r
e o is now fully pe fo me by the sta tups suppo te by ventu e
E d r
capitalism. ventual successes will become public companies an late on
r d d r d r r r r
acqui e an integ ate in co po ations that etain the cont ol of global
r d d r r d d
value chains, ma keting an ist ibution in the ma kets of a vance
r A dr 2
count ies ( u etsch Keilback, Lehman, 006).
r d r
The valo ization of knowle ge capital shifts upst eam. The change is quite r da ical. Downst eam co po ations acqui e knowle ge assets thatr r r r d
r r r d r d d
inco po ate al ea y a la ge chunk of the knowle ge value that use to be
r d r d r
valo ize in p o uct ma kets.
d r r d r r
The likelihoo of the c eative eaction in the knowle ge g owth egime depen s of the evolution of the upst eam knowle ge in ust yd r d d r driven by
r r r d r r r
scientific ent ep eneu ship an ventu e capitalism. Downst eam fi ms can react c eatively an int o uce innovations only if the upst eam fi ms r d r d r r
r d r d
specializing in gene ation of knowle ge p ovi e the system with a flow of
d r d
knowle ge inputs that allow the int o uction of innovations. The
d r d r r
con itions at which upst eam knowle ge fi ms make available thei
d r r
knowle ge output to the est of the system become c ucial to assess the rate of innovation at the system level. t the same time the use -p o uce A r r d r relations between upst eam knowle ge p o uce s anr d r d r d downst eamr
d r r r d r d
knowle ge use s a e c ucial to assess the ist ibution of wealth an income d d
along the new exten e value chain.
r d d d d d r
The p o uction an sale of any tangible (final an capital) goo engen e s
r d r r rd d r d r r d r
p ocee s that a e eco e as evenue an , afte paying inte me ia y
r r d dd d r
inputs, cont ibutes to the p o uction of value a e . The valo ization of
d d d d r r r
knowle ge not embo ie in tangible goo s o se vices takes place mo e
d r r d d
