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A New Sectoral Taxonomy Based On Pecuniary Knowledge Externalities: Knowledge Interactions In A Vertically Integrated System

  • Agnieszka Gehringer

The paper presents a new sectoral taxonomy that focuses on the existence of non-negligible external effects that derive from user--producer knowledge interactions. These are coupled with intermediate goods transactions, in a system of vertically integrated manufacturing and services sectors. These externalities, the so-called pecuniary knowledge externalities, are the main source of changing technological conditions experienced by downstream producers. A distinguishing feature of the taxonomy lies in its derivation from a particularly dynamic context of changing production functions. The taxonomy is empirically derived, examining effects generated by technological knowledge in a system of intermediate goods transactions and taking into account peculiar characteristics of sectors in European economies. The results allow for a classification of sectors in five groups. An analysis of these classes confirms previous evidence that technological characteristics of sectors across classes differ.

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Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

Volume (Year): 24 (2012)
Issue (Month): 1 (December)
Pages: 35-55

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Handle: RePEc:taf:ecsysr:v:24:y:2012:i:1:p:35-55
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