Antonelli, C. Link, A. (eds.), Assessing Technology and Innovation Policies, Routledge, London.
P E A ER F C
A A E E GE P
TOW RDS N W KNOWL D OLICY
A A E
CRISTI NO NTON LLI
PA ME E M A E A A G E E
DI RTI NTO DI CONO I ST TISTIC CO N TTI D
MARTIIS UNV RSIT ’ DI TORINOE A AND COLLEGIO C RLO A ALB RTOE
r d d
The gene ation an exploitation of knowle ge have become the
r r d d
co ne stone of a vance economic systems. The fast globalization of both r d d r rr d d 2 r p o uct an capital ma kets occu e since the en of the 0thcentu y has
d d d r d d r
pushe a vance count ies to i entify knowle ge as the key facto upon r r Ad d r
which to base thei competitive st ength. vance count ies have
r r d r r r d
p og essively shifte away f om the manufactu ing secto , an especially
r r d r d r d
f om the t a itional low-tech secto s an thus have expe ience fast
r d r d
g owth of the new knowle ge intensive business secto s. Knowle ge is at d d d d
the same time the output of a e icate activity an a key input into the
r d d r d
p o uction of new knowle ge as much as of all the othe goo s. The division of labo in the gene ation of new knowle ge has been inc easing r r d r
d r r
with the i entification of multiple laye s of specialization. The gene ation d d r d r d
of knowle ge as a final an an inte me ia y goo has been itself
d r d r d
“in ust ialize ”. New info mation an communication technologies have r d d r r r r p ovi e the basic inf ast uctu e to the activities that a e at the base of the
r d d
gene ation an exploitation of knowle ge.
d r d r r d d d Technological knowle ge is mo e an mo e t a e as an intangible goo
d r r r d d r r d d an a p ope ty ight, an its embo iment in othe p o ucts is less an less
r r r
necessa y fo its effective exchange in the ma ket place. The exchange of
d r r d
knowle ge takes place in the new ma kets fo knowle ge that have been
d d d d d d r
consoli ating both on the eman an the supply si e. Knowle ge use s rely less an less on the inte nal gene ation of knowle ge an have d r r d d r de uce the ve tical integ ation of knowle ge gene ating activities withd r r d r r r d r d r d d d selective p ocesses of outsou cing so as to fee a g owing e ive eman
d r d r d r d of knowle ge as an inte me ia y goo . The ent y of new specialize
r r d r r r r r r r
se vice fi ms an of public esea ch cente s that pe fo m esea ch activities
rd r r r d
on behalf of thi pa ties, togethe with the pe vasive ynamics of
r d r r d d r
takeove s of knowle ge intensive sta t-ups t a e in the financial ma kets, d r d r d r d has le to the bi th an g owth of a new in ust y specialize in the
r d d d
gene ation an exploitation of knowle ge as an economic goo (Antonelli, M 2
Link, etcalfe, 009) .
d r r d d
The viability of the new knowle ge g owth egime epen s upon the d d d
access con itions to knowle ge. Knowle ge in fact is at the same time the d d d d r
output of a e icate activity an the necessa y input of its own
r r d
gene ation. The gene ation of new knowle ge consists of the recombination of existing knowle ge items. The limite exhaustibility of d d
d r d
knowle ge enables its epeate use. This new context unveils—next to its d r r
well-known limits—the benefits of the limite app op iability of
d r r d
knowle ge: the bette a e the access con itions to the existing stock of
d d r d d r
knowle ge an the lowe is the cost of new knowle ge an the faste its rate of gene ation ( r Link, ntonelli, 0 4). A 2 1
r r d d
The analysis of the c ucial ole of knowle ge calls attention on the nee
r d r
fo a new knowle ge policy. Resea ch policies have been heavily
d r Arr d r
influence by the la ge consensus about the ovian knowle ge ma ket
r
failu e. The analysis of the negative economic consequences of the limits
d d d r r
of knowle ge as an economic goo has been implemente fo seve al deca es an p ovi e the base fo an a ticulate set of economic policiesd d r d d r r d
d r r d d d
aime inc easing the incentives to the gene ation of knowle ge eeme to be insufficient.
r r r r d r r
Consistent with its theo etical f amewo k, t a itional esea ch policies
r d d
have p ivilege the focus on the supply of knowle ge: the basic aim has r d r d r r r r r been in fact to t y an eme y the ma ket failu e, esto ing the equilib ium
d d d
con itions, acting on the si e of the missing incentives an the unbalance d r d d r d
between costs an evenues iminishe by the uncont olle leakage of d
knowle ge.
r r r r r
The co ne stones of the esea ch policies that stems f om the hypothesis of r d d r r d d r r
a gene alize knowle ge ma ket failu e, ue to the limite app op iability d r r r d of knowle ge, a e: (i) the public suppo t to the gene ation of knowle ge by
d d
means of the supply of scientific an technological knowle ge with the
r r r r d d d d
c eation of a public inf ast uctu e inclu ing aca emia an specialize r r r r d d d public esea ch cente s; (ii) the p ovision of public subsi ies esigne to r de ucing the costs of knowle ge gene ating activities so as to balance the d r r d r r r r r negative effects of the pe sistent limite app op iability of p op ieta y
d r r r d d
knowle ge even afte the p otection p ovi e by patents; (iii) the public
r d
suppo t to knowle ge exploitation with the implementation of an r r r P r d d r r intellectual p ope ty ights (I R) egime esigne to inc ease the natu al
r r d
app op iability of knowle ge.
r rr d r d
The esults of the analyses ca ie out by this book suggest that a a ical
r d d
change is necessa y. Knowle ge is an economic goo with special
r r d r d
cha acte istics that enable economic systems an fi ms to take a vantage d r r r r d
of the ynamic inc easing etu ns that stem f om its limite exhaustibility
d d d
an hence its cumulability an extensibility. Knowle ge extensibility takes d d r d
place when the same piece of knowle ge can be applie to the p o uction
d r r d d
of unlimite quantities of othe p o ucts. Knowle ge cumulability takes d d d r place when a piece of knowle ge is use again an again as an input fo
r d d r r
the gene ation of new knowle ge with limite effects in te ms of wea -d r
an -tea .
d d
Technological knowle ge, in fact, is not only an in ispensable input in the r d r r d r d technology p o uction function (i.e., fo the p o uction of any othe goo ),
r r r
but also an essential input fo the ecombinant gene ation of new
d d r d
knowle ge. The con itions fo the access an use of the stock of
d d d r
knowle ge accumulate by the successive vintages of knowle ge a e
r r r d r r
c ucial fo the g owth of output an the inc ease of total facto
r d d d
p o uctivity. The limite exhaustibility of knowle ge is in fact the key
r r r d r d
facto of total facto p o uctivity g owth. When the access con itions to d r r d r the stock of knowle ge a e favo able an its abso ption takes place at low
d r r
costs, the cost of new knowle ge can be lowe than its equilib ium levels. d d r d
The actual cost of knowle ge is ete mine by the quality of the
d r r
mechanism of knowle ge gove nance mechanisms at wo k within r d
economic systems. The cost of access, abso ption an use of the stock of d r d
existing knowle ge may be so high as to limit the int insic a vantages of
d r d
its limite exhaustibility. When, howeve , the quality of the knowle ge
r d
r d d r r
abso ption an use of the stock of quasi-public knowle ge, fo pe spective
r r r r r d
use s, below equilib ium levels it enables the c eative eaction of fi ms an
r d r d r
the int o uction of innovations that inc ease output an total facto r d
p o uctivity.
r r r d d r r r In this context the e a e st ong an evi ent easons fo the public suppo t
r d r r
to the gene ation of technological knowle ge not only to esto e the Arrovian “equilib ium con itions”, but to inc ease the size of the stock ofr d r
d r r r r
knowle ge with its positive consequences in te ms of inc easing etu ns.
r r r
Fo the same token, public suppo t to the imp oving the quality of
d r d d
knowle ge gove nance mechanism is expecte to yiel positive effects in
r r d d
te ms of lowe costs of access an using the existing stock of knowle ge (Antonelli, Link, 0 5) . 2 1
d
The new achievements of the economics of knowle ge, as well as the new r r d d d r
cent al ole of knowle ge in the economy of a vance count ies, make r r r d r r r r necessa y to ove come the limits of the t a itional f amewo k of esea ch
d rd d d d P
policies an necessitate a move towa s a full-fle ge Knowle ge olicy. d P r r r rr r d
The Knowle ge olicy f amewo k conce ns the full a ay of the t a itional
Arr r r d r r
tools of the ovian esea ch policies, inclu ing: (i) the st uctu e of r r r d r
intellectual p ope ty ights an the ole of the exclusivity of patents, (ii)
dd d r r d
the a itionality of public subsi ies to R&D activities pe fo me by
r r r r d r r
p ivate fi ms, (iii) the selection of the esea ch agen a of public esea ch r r d d d r
cente s that gene ate knowle ge as a public goo i ectly available to r r d d d r d p ivate use s, an (iv) a new attention on the eman fo knowle ge with
r r r
special attention to competent p ocu ement. Let us analyze them mo e in detail.
d r r
The analysis of the consequences of the limite app op iability of
d r d r
knowle ge must be f ame into the new context that app eciates the d r d r r r P r potentialities of knowle ge fo ynamic inc easing etu ns. I Rs a e
r r r r r r
necessa y to secu e the app op iation of the ent stemming f om the r d d r r r d
gene ation of technological knowle ge an thei use fo the int o uction of A d r d P d d r innovations. system ep ive of I Rs in ee isks facing the fall of the
r r r d
incentives, at the fi m level, fo the gene ation of knowle ge even
r r d r P
accounting fo its long-te m positive effects. The iffe entiation of I Rs
rd r r r d
r r r r d r d
exclusivity fo the use of p op ieta y knowle ge the technology p o uction d r d function an low levels of exclusivity fo the use of knowle ge as an input
d r r d
in the knowle ge gene ation function opens the way fo a knowle ge
d r d
policy aime at inc easing the benefits of the limite exhaustibility of
d r d P r d
knowle ge. The e uction of the exclusivity of I Rs with the int o uction
r d
of non-exclusive patents with compulso y licensing base upon the
r r r d
liability ule seems especially app op iate when existing knowle ge is
d r r d P r r
use fo the gene ation of new knowle ge. e spective use s of the r r r d d r d d
existing p op ieta y knowle ge can access an use it, p ovi e that the r P r d d r r r r owne of the I Rs is info me an eceives a fai oyalty. The suppo t to
r d r
the implementation of st ategic alliances base upon the sha ing of
r r r d r r d d
p op ieta y knowle ge can help inc easing the sha e access to knowle ge (Link an d Antonelli, 0 6). 2 1
d r d d
The new un e stan ing of the positive effects of the limite exhaustibility
d r r r
of knowle ge has impo tant implications fo the p ovision of public d r r r r r d d
subsi ies to fi ms that pe fo m esea ch an evelopment (R&D)
r d r d
activities. The t a itional ationale base upon the compensation to the d r r d d r r d misse benefits t igge e by the limite app op iability of knowle ge by
d r d d r d means of incentives nee s to be integ ate by the new un e stan ing of the
r r r r r d d inc easing etu ns t igge e by the cumulability of knowle ge. In this
r r r
context it is necessa y not only to compensate fi ms fo the missing revenues but also to sti the inc ease of the absolute levels of knowle ge r r d
r r r d d r r output. The la ge a e the flows of knowle ge output an the la ge is the
d d d
stock of knowle ge that can be use as an in ispensable input into the recombinant gene ation of new knowle ge, hence the lowe the costs ofr d r
d P d d r d
new knowle ge. ublic subsi ies shoul be consequently g ante with r r dd r r r d r d
st onge a itionality equi ements so that the t a itional c ow ing-out
d r r
effect can be limite by the const aint to inc ease the levels of R&D
r r d d
activities actually pe fo me by an amount that is at least equal an
r r d r
possibly la ge than the public subsi y. The selective suppo t to the
r d rd d r d
gene ation of new technological knowle ge acco ing to iffe entiate
dd d
levels of a itionality seems an in ispensable tool to implement a new
r r r d d d P
f ame fo g anting public subsi ies base upon the Knowle ge olicy r
app oach.
d r d r r r
The supply of public knowle ge gene ate by public esea ch cente s requi es to be better r d ri ecte . Too often public esea ch cente s iskd r r r r
d r r r d d d
aban oning thei esea ch agen a an the flow of knowle ge output to d r d
un e takings with a limite use by the business system. The key signaling r r d d r r d r function about the cha acte istics of the eman pe fo me by the p ice
dd d r r d r r d mechanism embe e in the wo king of ma kets nee s be bette g afte
d d d d r d d
an a apte to i ecting an selecting the supply of knowle ge as a public d r r r r r r r goo by public esea ch cente s. It is clea ly necessa y to p ese ve the
d r r r d d d r
in ispensable esea ch f ee om an yet to finalize the elive y of
d r r A
knowle ge inputs to the est of the system that a e actually useful.
r d d r
solution can be p ovi e by the systematic implementation of close
r r d r d r d
inte action mechanisms between use s an p o uce s of public knowle ge. r d d d r
Inte ventions on the eman si e can be ve y effective to complement the
d d P r r
set of supply si e tools of the novel Knowle ge olicy. Suppo t fo the deman fo knowle ge intensive p o ucts can yiel impo tant incentivesd r d r d d r
r dd d d
to the gene ation of a itional knowle ge when it is couple with high
d d r d
levels of competence. The eman of selective p o ucts that solicit the
r d r r r
gene ation of new knowle ge can be fa mo e effective than gene ic
r d d r
mac oeconomic eman -pull mechanisms. The suppo t to competent r r d r d d r r r
p ocu ement can be both i ect an in i ect. The competent p ocu ement r r d d d d
of the business secto can be suppo te an gui e with selective r d r r d r d d d r incentives to p o ucts that a e likely to inc ease the e ive eman fo
d d d d d knowle ge in selecte fiel s. The levels of competence of the eman of
r r d r r the public secto can be imp ove with highe levels of awa eness of its
r r d d d
powe ful effects on the gene ation of a vance knowle ge. The coupling
r r d r d r d
of a competent p ocu ement both i ect by the public a minist ations an d r r r d
in i ect by fi ms suppo te by public incentives with the public supply of d r r r r
knowle ge by public esea ch cente s can boost thei joint effects. r
Refe ences
Antonelli, C., Link, A.N., Metcalfe, J.S. (e s.) ( 009), d 2 Technology
r r r
inf ast uctu e , Routle ge, Lon on.d d
A A d 2 1
Link, .N., ntonelli, C. (e s.) ( 0 4), Recent Developments in the Economics of Science an Innovation Ed d , ward Elga Inte national Lib a yr r r r
r r E d d r Pr r M r
of C itical W itings in conomics (foun ing e ito ofesso a k Blaug), Cheltenham.
Antonelli, C., Link, .N. (e s.) ( 0 5), A d 2 1 Han book on the economics ofd d
knowle ge , Routle ge, Lon on.d d
A A d 2 1
Link, .N., ntonelli, C. (e s.), ( 0 6), St ategic lliances. r A Leve agingr Economic Growth an Development d , Routle ge, Lon on.d d
