An expanded knowledge production function

This paper uses a theoretical motivation for an Expanded Knowledge Production Function(EKPF) that encompasses both path dependence and spatial spillovers to search for evidences inBrazil using a Dynamic Spatial Panel Data approach. The purpose is to identify the determinantsof knowledge production in the 2005-2015 period as well as its temporal evolution, usinginnovation patents as proxies. Regarding its spatial distribution, we identified a North-Southdisparity for the knowledge production in Brazil, with Southeast and South producing alarge part of the country’s patents. Based on the EKPF, we confirmed the importance ofpath dependence and knowledge spillovers to explain the Brazilian innovation. In addition,population density, which generates Jacobian externalities and economies of agglomeration, isan important structural feature in the short run while the number of researchers in universitiesand an increased economic scale are essential to knowledge production in the long run.

Knowledge Diffusion, Trade, and Innovation across Countries and Sectors

This paper provides a unified framework for quantifying the cross-country and cross-sector interactions among trade, innovation, and knowledge diffusion. This framework is used to study the effect of trade liberalization in an endogenous growth model in which comparative advantage and the stock of knowledge are determined by innovation and diffusion. The model is calibrated to match observed cross-country and cross-sector heterogeneity in production, innovation efficiency, and knowledge spillovers. The counterfactual analysis shows that a reduction in trade costs induces a reallocation of R&D and comparative advantage across sectors. Heterogeneous knowledge diffusion amplifies the specialization effects of trade-induced R&D reallocation, becoming an important source of welfare. (JEL F12, F14, O33, O34, O41)

Local productive systems within the perspective of the circular economy

The objective of this research is to present a proposal of the production function of the circular economy to contribute to the conceptual development of local productive systems. A systematic review of the literature and a critical discourse analysis were used, allowing to adjust the production functions within the LPS. The results describe how LPSs can be within into a circular productive dynamic allowing a change in the focus of the production function, which in the dominanteconomic discourse ignores possible resources and only assumes linear management models, within these systems. In conclusion, by adjusting the production function for SPLs in a dynamic circular economy, it allows the incorporation of waste as a type of secondary capital in production processes. Keywords: local productive systems, linear economy, circular economy. References [1]M. Scalone, "Introducción al enfoque de sistemas en agricultura y su aplicación para el desarrollo de sistemas de producción sostenibles". 2007. [2]M. Astudillo, "Fundamentos de Economia 1", Primera edición. México: UNAM, Instituto de Investigaciones Económicas. 2012. [3]R. Tansini, "Economía para no economistas" Uruguay: Universidad de la República, Facultad de Ciencias Sociales, 2000, 198. [4]M. A. Sánchez, "La clasificación de los factores de producción fue retomada de: Parkin, Michael. Economía. Octava edición. México: Pearson Educación, 2009, 3.[5]P. Triunfo, M. Torello, N. Berretta, L. Vicente, U. Della-Mea, M. Bergara, … and M. González, "Economía para no economistas". Montevideo: Departamento deSociología, Facultad de Ciencias Sociales, 2003. [6]C. Massad, "Economía para todos". Chile: Banco Central de Chile, 2010, 59. [7]R. Pindyck, D. Rubinfeld, "Microeconomía" Prentice Hall. 1995. [8]C.L Garcia, "Economía circular y su papel en el diseño e innovación sustentable", Libros Editorial UNIMAR, 2017. [9]V. Prieto-Sandoval, C. Jaca and M. Ormazabal. "Economía circular: Relación con la evolución del concepto de sostenibilidad y estrategias para su implementación", Memoria de Investigaciones en Ingeniería Universidad de Montevideo: Facultad de Ingeniería, 2017. [10]P. Samuelson, W. Nordhaus, "Microeconomia", 19a edición. México: Mc Graw Hill, 2017. [11]T. Winpenny, "El valor del medio ambiente. Métodos de valoración económica", Varsovia, 1995. [12]E. Neumayer, "Preserving Natural Capital in a World of Uncertainty and Scarce Financial Resources", International Journal of Sustainable Development and World Ecology 5 (1), 1998, 27-42. [13]D. Kiełczewski, "Sustainable development - the essence, interpretations, relationship with the knowledge society", Economics of sustainable development. Study materials: Szkoła Ekonomiczna, Białystok, 2010, 10-29. [14]F. Aguilera, V. Alcántara, "De la economía ambiental a la economía ecológica". Barcelona: ICARIA: FUHEM, 1994. [15]Ellen MacArthur Foundation, "Towards The Circular Economy, Economic and Business Rationale for an Accelerated Transition", Ellen MacArthur Foundation, 2013. [16]D. Pieńkowski, Kapitał naturalny w teoretycznych analizach czynników produkcji. Ekonomia i Środowisko, No. 1(21), 2002. [17]D. Pieńkowski, "Czasopismo Polskiego Stowarzyszenia Ekonomistów Środowiska i Zasobów Naturalnych", Fundacja Ekonomistów Środowiska i ZasobówNaturalnych Białystok. No. 2 (57), 2016. [18]D. Audretsch, "Knowledge Spillovers and the Geography of Innovation and Production" American Economic Review 86, 1996, 630–640. [19]F. Morales, "Desarrollo: los retos de los municipios mexicanos", Centro de Estudios Municipales Heriberto Jara, 2000. [Online]. Available: www.cedemun.org.mx. [20]Ramírez, N., Mungaray, A., Ramírez, M., and Texis, M. "Economías de escala y rendimientos crecientes: Una aplicación en microempresas mexicanas. Economía mexicana". Nueva época, 19(2), 2010, 213-230. [Online]. Available: http://www.scielo.org.mx/scielo.php?script=sci_arttext&pid=S166520452010000200001&lng=es&tlng=es. 2010. [21]P. Krugman, "Urban Concentration: The Role of Increasing Returns, and Transport Costs", International Regional Science Review, 19, 1996, 5-30. [22]G. Perry, W.F. Maloney, O.S. Arias, P. Fajnzylber, A.D. Mason and J. Saavedra-Chanduvi. Informalidad: Escape y exclusión. Washington, Banco Mundial, 2007. [23]G. Garófoli, "The Italian Model of Spatial Development in the 1970s and 1980s", Industrial Change & Regional Development. Belhaven Press, London, 1991. [24]G. Garofoli, "Las experiencias de desarrollo económico local en Europa: las enseñanzas para América Latina". San José, Costa Rica: URB-AL III, 2009.

Friend or foe? Co-opetition and entrepreneurial networking

We study the formation of an entrepreneurial network in an environment, in which entrepreneurs who are contesting with each other for the development of a new venture have the possibility to collaborate. On the one hand, such bilateral knowledge collaborations are beneficial because they allow the integration of external knowledge. On the other hand, external knowledge collaborations reduce an entrepreneur’s incentive to invest in her internal knowledge. We analyze this trade-off and show that if the knowledge transfer between collaborating partners is complete, the only stable entrepreneurial network is one with exactly one collaboration of each entrepreneur. If, however, knowledge transfers are only partial, entrepreneurial networking becomes more important and entrepreneurs form more knowledge collaborations. Moreover, internal or external knowledge spillovers reduce the incentives to form knowledge collaboration. These results have several practical implication for entrepreneurs and managers of small- and medium-sized enterprises (SMEs) in their pursuit to better understand factors that influence knowledge collaborations with competitors and to devise their co-opetition strategy.

Do Co-Worker Networks Increase or Decrease Productivity Differences?

Do labor mobility and co-worker networks contribute to convergence or divergence between regions? Based on the previous literature, labor mobility contributes to knowledge transfer between firms. Therefore, mobility may contribute to decreasing productivity differences, while limited mobility sustains higher differences. The effect of co-worker networks, however, can be two-fold in this process; they transmit information about potential jobs, which may enhance the mobility of workers—even between regions—and this enhanced mobility may contribute to levelling of differences. However, if mobility between regions involves movement costs, co-worker networks may concentrate locally—possibly contributing to the persistence of regional differences. In this paper, we build an agent-based model of labor mobility across firms and regions with knowledge spillovers that reflects key empirical observations on labor markets. We analyze the impact of network information provided about potential employers in this model and find that it contributes to increasing inter-regional mobility, and subsequently, to decreasing regional differences. We also find that both the density of coworker networks, as well as their regional concentrations, decrease if network information is available.

How do formal and informal institutional distance affect the reverse knowledge spillover of Chinese MNCs?

PurposeThis study examines the impact of outward foreign direct investment (OFDI) of Chinese multinational corporations (MNCs) and formal and informal institutional distances between the home and host countries on the innovation performance of parent company.Design/methodology/approachThis study uses panel data to conduct an empirical analysis on the data of 59 mature Chinese MNCs and their 872 overseas subsidiaries over the past 11 years and draws interesting results.FindingsResults show that OFDI and formal and informal institutional distances between countries exert a significant positive impact on the innovation performance of the parent company and formal and informal institutional distances negatively moderate the impact between OFDI and the parent company's innovation performance.Originality/valueAlthough international business research pays increasing attention to transnational differences in institutions and cultures, research on the relationship between technology spillover and distance is relatively limited. In addition, few studies consider the impact of FID and IFID on transnational reverse knowledge spillovers. This research fills these research gaps, and the conclusions have certain practical significance for multinational companies.