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The Business Governance of Localized Knowledge: An Information Economics Approach for the Economics of Knowledge

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  • Cristiano Antonelli

Abstract

Information economics provides important tools to articulate an economics analysis of the governance mechanisms for the generation and exploitation of localized technological knowledge. A variety of hybrid forms of knowledge governance ranging from coordinated transactions and constructed interactions to quasi-hierarchies can be found between the two unrealistic extremes of pure markets and pure organizations. The notion of localized technological knowledge as a highly heterogeneous dynamic process characterized by varying levels of appropriability, tacitness, unpredictability and indivisibility, which take the forms of complementarity and modularity, cumulability, compositeness, fungibility, helps to grasp the logic behind the variety of knowledge governance mechanisms at work. The analysis of transaction, agency and communication costs provides basic guidance to elaborate an integrated framework able to understand the matching between types of knowledge and modes and mechanisms of knowledge governance both in generation and exploitation.

Suggested Citation

  • Cristiano Antonelli, 2006. "The Business Governance of Localized Knowledge: An Information Economics Approach for the Economics of Knowledge," Industry and Innovation, Taylor & Francis Journals, vol. 13(3), pages 227-261.
  • Handle: RePEc:taf:indinn:v:13:y:2006:i:3:p:227-261
    DOI: 10.1080/13662710600858118
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    Cited by:

    1. Consoli, Davide & Rentocchini, Francesco, 2015. "A taxonomy of multi-industry labour force skills," Research Policy, Elsevier, vol. 44(5), pages 1116-1132.
    2. Raphael Suire & Jérome Vicente, 2009. "Why do some places succeed when others decline? A social interaction model of cluster viability," Journal of Economic Geography, Oxford University Press, vol. 9(3), pages 381-404, May.
    3. Josef Windsperger & Nina Gorovaia, 2011. "Knowledge attributes and the choice of knowledge transfer mechanism in networks: the case of franchising," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 15(4), pages 617-640, November.
    4. Patrucco, Pier Paolo, 2013. "The Evolution of Knowledge Organization: The Emergence of Innovation Platform in the Turin Car System," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201315, University of Turin.
    5. Davide Consoli & Pier Paolo Patrucco, 2011. "Complexity and the Coordination of Technological Knowledge: The Case of Innovation Platforms," Chapters, in: Handbook on the Economic Complexity of Technological Change, chapter 8 Edward Elgar Publishing.
    6. Pier Patrucco, 2008. "The economics of collective knowledge and technological communication," The Journal of Technology Transfer, Springer, vol. 33(6), pages 579-599, December.
    7. Prasad Pant, Laxmi & Hambly Odame, Helen & Hall, Andy & Sulaiman, Rasheed, 2008. "Learning Networks Matter: Challenges to Developing Learning-Based Competence in Mango Production and Post-Harvest in Andhra Pradesh, India," MERIT Working Papers 069, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Jermy, Amanda, 2016. "How business governance challenges affect the common wealth," MPRA Paper 70601, University Library of Munich, Germany.
    9. Rachel Bocquet & Caroline Mothe, 2015. "Can a governance structure foster cluster ambidexterity through knowledge management? An empirical study of two French SME clusters," Post-Print hal-01132584, HAL.
    10. Davide Consoli & Pier Paolo Patrucco, 2011. "Complexity and the Coordination of Technological Knowledge: The Case of Innovation Platforms," Chapters,in: Handbook on the Economic Complexity of Technological Change, chapter 8 Edward Elgar Publishing.
    11. Christopher F Baum & Hans Lööf & Pardis Nabavi, 2015. "Innovation Strategies, External Knowledge and Productivity Growth," Boston College Working Papers in Economics 885, Boston College Department of Economics, revised 06 Dec 2017.
    12. Albert Jolink & Eva Niesten, 2012. "Hybrid Governance," Chapters,in: Handbook on the Economics and Theory of the Firm, chapter 12 Edward Elgar Publishing.
    13. Raphaël Suire & Jérôme Vicente, 2009. "Clusters for life or life cycles of clusters. From declining to resilient clusters," Post-Print halshs-00460131, HAL.
    14. Joelle Forest & Denis Choulier & Eric Coatanéa & Christophe François & Mohamed Bakhouya, 2013. "Creativity from Design and Innovation Perspectives," Post-Print halshs-00805520, HAL.
    15. Ugo Rizzo & Francesco Nicolli & Laura Ramaciotti, 2014. "The Heterogeneity of the Development Process of New Technology-Based Firms. Implication for Innovation Policies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(1), pages 114-132, March.
    16. Jérôme Vicente & Pierre-Alexandre Balland & Olivier Brossard, 2008. "Getting Into Networks and Clusters: Evidence on the GNSS composite knowledge process in (and from) Midi-Pyrénées," Papers in Evolutionary Economic Geography (PEEG) 0815, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2008.
    17. D’Ippolito,Beatrice & Miozzo,Marcela & Consoli,Davide, 2012. "Knowledge systematisation and the development of a business function: the case of design," INGENIO (CSIC-UPV) Working Paper Series 201202, INGENIO (CSIC-UPV), revised 30 May 2012.
    18. Rachel Bocquet & Caroline Mothe, 2010. "Knowledge governance within clusters: the case of small firms," Post-Print hal-00920052, HAL.
    19. Grazia Cecere & Muge Ozman, 2014. "Innovation, Recombination and Technological Proximity," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(3), pages 646-667, September.
    20. Consoli,Davide & Elche,Dioni, 2014. "An analysis of the knowledge base of Scientific Research & Development Business Services," INGENIO (CSIC-UPV) Working Paper Series 201401, INGENIO (CSIC-UPV).
    21. Lehrer, Mark & Asakawa, Kazuhiro & Behnam, Michael, 2011. "Home base-compensating R&D: Indicators, public policy, and ramifications for multinational firms," Journal of International Management, Elsevier, vol. 17(1), pages 42-53, March.

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