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Globalization and the Knowledge-Driven Economy

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  • Cristiano Antonelli
  • Claudio Fassio

Abstract

The study implements the Schumpeterian notion of creative reaction to articulate and test the hypothesis that the shift to the knowledge economy in advanced economies is the result of the creative reaction of firms, caught in out-of-equilibrium conditions by the fast globalization of product and factor markets since the last decade of the 20th century. Advanced countries specialized in the generation and exploitation of knowledge because of its relative abundance stemming from their sophisticated knowledge governance mechanisms and the large stock of knowledge. In turn, this had strong positive effects on total factor productivity. The empirical analysis confirms that in advanced economies the specialization in knowledge-based activities substituted for the previous specialization in mass manufacturing activities supporting the increase of total factor productivity. The new specialization in knowledge-intensive activities has been stronger in cases where patent activities have been more intense and the exposure to international trade and the revenue per capita have been larger.

Suggested Citation

  • Cristiano Antonelli & Claudio Fassio, 2016. "Globalization and the Knowledge-Driven Economy," Economic Development Quarterly, , vol. 30(1), pages 3-14, February.
  • Handle: RePEc:sae:ecdequ:v:30:y:2016:i:1:p:3-14
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    References listed on IDEAS

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    Cited by:

    1. Antonelli, Cristiano & Tubiana, Matteo, 2020. "Income inequality in the knowledge economy," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 153-164.
    2. Cristiano Antonelli, 2016. "The bumpy ride to the knowledge economy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(3), pages 337-344, September.
    3. Cristiano Antonelli, 2020. "Knowledge exhaustibility public support to business R&D and the additionality constraint," The Journal of Technology Transfer, Springer, vol. 45(3), pages 649-663, June.
    4. Konstantin Axenov & Alisa Timoshina & Alexandra Zemlyanova, 2020. "Commercial redevelopment of industrial and residential periphery of Russian metropolis: St. Petersburg, 1989–2017," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(4), pages 705-722, August.

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