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Diffusing new technology without dissipating rents: some historical case studies of knowledge sharing

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  • James Bessen
  • Alessandro Nuvolari

Abstract

The diffusion of innovations is supposed to dissipate inventors’ rents. Yet in many documented cases, inventors freely shared knowledge with their competitors. Using a model and case studies, this article explores why sharing did not eliminate inventors’ incentives. Each new technology coexisted with an alternative for one or more decades. This allowed inventors to earn rents while sharing knowledge, attaining major productivity gains. The technology diffusion literature suggests that such circumstances are common during the early stages of a new technology.

Suggested Citation

  • James Bessen & Alessandro Nuvolari, 2019. "Diffusing new technology without dissipating rents: some historical case studies of knowledge sharing," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(2), pages 365-388.
    • Handle: RePEc:oup:indcch:v:28:y:2019:i:2:p:365-388.
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    File URL: http://hdl.handle.net/10.1093/icc/dty068
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    Cited by:

    1. Liu, Ziyu & Du, Yushen, 2022. "Open knowledge disclosure and technical standard competition in transition economies: A legitimacy perspective," Technology in Society, Elsevier, vol. 70(C).
    2. Elena-Madalina Vatamanescu & Wioletta Wereda & Jacek Woźniak, 2020. "Communication And Knowledge Management In Innovative Enterprises – Literature Review Perspective," Nowoczesne Systemy Zarządzania. Modern Management Systems, Military University of Technology, Faculty of Security, Logistics and Management, Institute of Organization and Management, issue 2, pages 41-55.

    More about this item

    JEL classification:

    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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