Economics of knowledge codification

Whether a capability can be reproduced by codified instruction is a fundamental question for innovation studies and industrial economics. The existence and apparent necessity of tacit knowledge in gaining and exercising capabilities to perform actions raises questions about the limits of codification as a means to exploit the economics of information (e.g. low marginal costs of reproduction). The technologies of codification are, however, subject to innovation and the boundary between what knowledge is tacit and what can be codified is subject to change. This entry examines the meaning of tacit and codified knowledge in relation to individuals and organisations. It takes into account advances in information and communication technology in shifting the boundary between knowledge that remains tacit and knowledge codification.