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The Knowledge Multiplier

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  • Mário Alexandre Patrício Martins da Silva

    (Faculdade de Economia, Universidade do Porto)

Abstract

The paper develops a formal model of external knowledge and identifies the role of knowledge multipliers. Social interactions and knowledge multipliers play a crucial role in the determination of the rate of technological change. The analytical identification of the knowledge multiplier expression constitutes a key step in the appreciation of the crucial role of knowledge interactions. First, social considerations endogenously change the knowledge production function of each firm. The knowledge multiplier is the specific mechanism by means of which external knowledge contributes to enhance the innovative capacity of each firm. The production function of knowledge shows that the knowledge multiplier is larger, the stronger the cumulative positive effects of external knowledge on the generation of new knowledge. Second, social considerations explain the long-run dynamics of innovation. Social reinforcement and the knowledge multiplier determine the rise or fall of the rate of accumulation of technological knowledge.

Suggested Citation

  • Mário Alexandre Patrício Martins da Silva, 2012. "The Knowledge Multiplier," FEP Working Papers 456, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:456
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    External knowledge; social interactions; social multiplier; localized knowledge; innovation network; interactive learning; sustainable growth;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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