Print page

The Dynamics of Knowledge Externalities

Localized Technological Change in Italy Cristiano Antonelli, Professor of Economics, Department of Economics and Statistics "Cognetti de Martiis", University of Torino and Fellow, Collegio Carlo Alberto and Federico Barbiellini Amidei, Economist, Research Department, Bank of Italy
This book elaborates a new dependent and localized growth theory based upon knowledge externalities by making two important contributions. Firstly, it elaborates the hypothesis that total factor productivity growth stems from pecuniary knowledge externalities that consist in the access to localized external knowledge, at costs that are below equilibrium levels. Secondly, it implements the economic analysis of complex dynamic systems with a novel approach to understanding the role of knowledge interactions and knowledge governance mechanisms in the generation of new technological knowledge within economic systems characterized by webs of interdependence.
Extent: 232 pp
Hardback Price: $125.00 Web: $112.50
Publication Date: 2011
ISBN: 978 1 84844 105 7
Availability: In Stock
$0.00

Buy the E-Book @ paperback price

Join our mailing list

  • Economics and Finance
  • Economics of Innovation
  • Innovation and Technology
  • Economics of Innovation
This book elaborates a new path dependent and localized growth theory based upon knowledge externalities by making two important contributions. Firstly, it elaborates the hypothesis that total factor productivity growth stems from pecuniary knowledge externalities that consist in the access to localized external knowledge, at costs that are below equilibrium levels. Secondly, it implements the economic analysis of complex dynamic systems with a novel approach to understanding the role of knowledge interactions and knowledge governance mechanisms in the generation of new technological knowledge within economic systems characterized by webs of interdependence.

This approach provides a consistent interpretation of the puzzling experience of Italian economic growth in the years 1950–1992, which consisted of very low levels of expenditure in R&D yet high levels of productivity growth. The Italian case is analysed as an original distributed innovation system where knowledge externalities were generated by intensive interactions-cum-transactions between upstream producers and downstream users of capital goods, and exploited through the introduction of capital-intensive process innovations.

This valuable book illustrates a new endogenous path dependent growth theory based on localized knowledge interactions, knowledge externalities and knowledge governance. In so doing it makes a major step forward in the analysis of the economic of complexity of technological change. As such, it will be required reading for academics, researchers and advanced students of innovation and growth economics, industrial organization, and economic and business history.
Contents: 1. Technological Change and Italian Growth 1950–1992: An Intriguing Puzzle Part I: The Localized Generation and Exploitation of Technological Knowledge and Innovation 2. The General Framework 3. The Localized Generation of Technological Knowledge 4. The Role of External Factors in the Localized Generation of Technological Knowledge 5. The Role of External Factors in the Localized Exploitation of Technological Knowledge: Localized Appropriability and Directed Technological Innovation 6. The Emergence and Decline of Innovation Systems 7. A Model of Localized Technological Change Cum Pecuniary Knowledge Externalities Part II: The Italian Evidence 8. Technological Change in a Distributed Innovation System 9. The Measures of Innovative Activity in Italy 10. Structural Change and the Building of Systemic Interdependence: The Emergence of a Distributed Innovation System 11. Knowledge Exploitation Strategies and the Direction of Technological Change 12. Knowledge Generation and Vertical Dynamic Interdependence Within Industrial Filieres: Econometric Evidence on Total Factor Productivity Growth Conclusion 13. A Distributed System of Innovation: The Italian Evidence in the Second Part of the Twentieth Century References Index