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Economic Fundamentals Of the Knowledge Society

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Author Info
Paul A. David (Stanford University)
Dominique Foray (Stanford University)

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Abstract

This article provides an introduction to fundamental issues in the development of new knowledge-based economies. After placing their emergence in historical perspective and proposing a theoretical framework that distinguishes knowledge from information, the authors characterize the specific nature of such economies. They go on to deal with some of the major issues concerning the new skills and abilities required for integration into the knowledge-based economy; the new geography that is taking shape (where physical distance ceases to be such an influential constraint); the conditions governing access to both information and knowledge, not least for developing countries; the uneven development of scientific, technological (including organizational) knowledge across different sectors of activity; problems concerning intellectual property rights and the privatization of knowledge; and the issues of trust, memory and the fragmentation of knowledge. This monograph is concerned with the nature of the process of macroeconomic growth that has characterized the U. S. experience, and manifested itself in the changing pace and sources of the continuing rise real output per capita over the course of the past two hundred years. A key observation that emerges from the long-term quantitative economic record is that the proximate sources of increases in real GDP per head in the century between 1889 and 1999 were quite different from those which obtained during the first hundred years of American national experience. Baldly put, the economy's ascent to a position of twentieth century global industrial leadership entailed a transition from growth based upon the interdependent development and extensive exploitation of its natural resources and the substitution of tangible capital for labor, towards a the maintenance of an productivity leadership through rising rates of intangible investment in the formation and exploitation of technological and organizational knowledge.

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Publisher Info
Paper provided by EconWPA in its series Development and Comp Systems with number 0502008.

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Length: 25 pages
Date of creation: 10 Feb 2005
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Handle: RePEc:wpa:wuwpdc:0502008

Note: Type of Document - pdf; pages: 25
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Web page: http://129.3.20.41

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Find related papers by JEL classification:
O - Economic Development, Technological Change, and Growth
P - Economic Systems

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Cited by:
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  1. Franz Tödtling & Patrick Lehner & Michaela Trippl, 2004. "Knowledge intensive industries, networks, and collective learning," ERSA conference papers ersa04p167, European Regional Science Association. [Downloadable!]
    Other versions:
  2. Franz Tödtling & Patrick Lehner & Alexander Kaufmann, 2008. "Do Different Types of Innovation Rely on Specific Kinds of Knowledge Interactions?," SRE-Disc sre-disc-2008_01, Department of City and Regional Development, Vienna University of Economics and Business Administration. [Downloadable!]
  3. Bengt-Åke Lundvall, 2006. "Organizational Design and Resource Evaluation," DRUID Working Papers 06-08, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  4. Francesco Rullani, 2006. "Dragging developers towards the core. How the Free/Libre/Open Source Software community enhances developers’ contribution," LEM Papers Series 2006/22, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  5. Franz Toedtling & Patrick Lehner, 2006. "Do Different Types of Innovation Require Specific Kinds of Knowledge Links?," ERSA conference papers ersa06p513, European Regional Science Association. [Downloadable!]
  6. Francesco Rullani, 2006. "Dragging developers towards the core," CESPRI Working Papers 190, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Feb 2007. [Downloadable!]
  7. Eric Brousseau, 2004. "Property rights on the internet: is a specific institutional framework needed?," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 13(5), pages 489-507, July. [Downloadable!] (restricted)
  8. Lukas Lengauer & Franz Tödtling & Michaela Trippl, 2006. "Der Informations- und Kommunikationstechnologien-Sektor in Österreich: Struktur, Entwicklungsdynamik und räumliche Muster," SRE-Disc sre-disc-2006_06, Department of City and Regional Development, Vienna University of Economics and Business Administration. [Downloadable!]
  9. Francesco Rullani, 2005. "The Debate and the Community. “Reflexive Identity” in the FLOSS Community," LEM Papers Series 2005/18, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  10. O'Mahoney, Siobhán & Ferraro, Fabrizio, 2004. "Managing the boundary of an 'open' project," IESE Research Papers D/537, IESE Business School. [Downloadable!]
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