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On Markets in Knowledge

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  • Suma Athreye

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Abstract

Two conditions must be met in order for specialised markets in knowledge to emerge: (i) The alienation of knowledge from its context which allows knowledge to become a commoditisable product that can be bought and sold and transferred thereafter to different uses. Property rights are sufficient to such alienation and commoditisation. (ii) The establishment of a reasonable volume of exchange transactions in that commodified knowledge, which in turn requires cross sectoral application and horizontal integration. Institutional structures facilitate the continuance of exchanges and are sufficient to the second condition. The second condition is more stringent than the first. Empirical evidence suggests that technological convergence may be the specific and important historical occurrence when markets in technological knowledge emerge. Technological convergence meant that there were areas where knowledge could be transferred across industries, and in that process of transference knowledge also became more generic and abstract. Copyright Kluwer Academic Publishers 1997

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File URL: http://hdl.handle.net/10.1023/A:1009912129583
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Bibliographic Info

Article provided by Springer in its journal Journal of Management & Governance.

Volume (Year): 1 (1997)
Issue (Month): 2 (June)
Pages: 231-253

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Handle: RePEc:kap:jmgtgv:v:1:y:1997:i:2:p:231-253

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Web page: http://www.springerlink.com/link.asp?id=102940

Related research

Keywords: Specialisation; vertical disintegration; market emergence; codified and tacit knowledge; technological convergence;

References

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  1. Ashish Arora & Farasat Bokhari, 1996. "Returns to Specialization, Transaction Costs, and the Dynamics of Industry Evolution," Industrial Organization 9606002, EconWPA, revised 01 Jul 1996.
  2. Brian J Loasby, 1994. "Understanding Markets," Working Papers Series 94/4, University of Stirling, Division of Economics.
  3. Bala, Venkatesh & Goyal, Sanjeev, 1994. "The Birth of a New Market," Economic Journal, Royal Economic Society, vol. 104(423), pages 282-90, March.
  4. Arora, Ashish, 1997. "Patents, licensing, and market structure in the chemical industry," Research Policy, Elsevier, vol. 26(4-5), pages 391-403, December.
  5. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
  6. Sahal, Devendra, 1985. "Technological guideposts and innovation avenues," Research Policy, Elsevier, vol. 14(2), pages 61-82, April.
  7. Arora, Ashish & Gambardella, Alfonso, 1994. "The changing technology of technological change: general and abstract knowledge and the division of innovative labour," Research Policy, Elsevier, vol. 23(5), pages 523-532, September.
  8. Ashish Arora & Alfonso Gambardella, 1996. "Domestic Markets and International Competitiveness," Industrial Organization 9605001, EconWPA.
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Cited by:
  1. Suma Athreye & David Keeble, 2000. "Sources of Increasing Returns and Regional Innovation in the UK," ESRC Centre for Business Research - Working Papers wp158, ESRC Centre for Business Research.

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