This paper considers the effect of acquisition FDI on the knowledge production function. We distinguish between acquisitions by MNEs from technologically leading countries and those behind the technological frontier. We show that both acquire similarly R&D intensive domestic firms, but there are important differences post-acquisition. Acquisitions from technologically intensive countries reduce...

Japan’s hybrid system during the Meiji era of technological modernization provides a useful laboratory for examining whether complementary mechanisms to patents induce innovation. Patents were introduced in 1885 and by 1911 1.2 million mostly non-pecuniary prizes were awarded at 8,503 competitions. Prizes increased patent outcomes by 35 percent, a conservative causal estimate based on the timin...

We analyze the causes and mechanisms of inequality in Post-Soviet Union transition economies. First, we show that both economic globalisation – namely, import, export, and foreign direct investment – and institutional factors – namely, privatisation reforms, labour market liberalisation, and product market liberalisation – are strongly associated with within-country rises in inequality. However...

We examine the geographic co-location of university research and industrial R&D in three technology areas. While we find strong evidence of co-location of these vertically connected activities, regional economies appear to vary markedly in their ability to convert local academic research into local commercial innovation. We develop and test the hypothesis that the presence of a large, local, R&...

The rise in online social networking has brought about a revolution in social relations. However, its effects on offline interactions and its implications for collective well-being are still not clear and are under-investigated. We study the ecology of online and offline interaction in an evolutionary game framework where individuals can adopt different strategies of socialization. Our main res...

The authors examine racial and ethnic differences in computer ownership and Internet usage using data from a survey conducted by the Nomura Research Institute in 2000. They focus on on-line shopping because few studies have examined racial and ethnic differences in e-commerce. The results indicate that blacks and Hispanics are less likely to own or use a computer than are non-Hispanic whites bu...

Within the recent literature studying participation in international markets using micro data, a small number have suggested that firms benefit from their exposure to international markets. One channel considered for this role has been investments in R&D. A common finding in this literature is that firms involved in international trade are also more likely to also undertake R&D. In this paper w...

This paper introduces endogenous and directed technical change in a growth model with environmental constraints. The final good is produced from "dirty" and "clean" inputs. We show that: (i) when inputs are sufficiently substitutable, sustainable growth can be achieved with temporary taxes/subsidies that redirect innovation toward clean inputs; (ii) optimal policy involves both "carbon taxes" a...

This paper investigates labor productivity growth and the contribution to labor productivity growth in Swedish manufacturing during electrification and the ICT revolution. The paper distinguishes between technology-producing, intensive and less intensive technology-using industries during these technological breakthroughs. The results show that labor productivity growth and the overall contribu...

In this introduction the editors showcase the papers by way of a structured project and seek to clarify the two key concepts cited in the title. We consider the history of the idea that knowledge is an economic factor, and discuss the question of whether regions provide the relevant system of reference for knowledge-based economic development. Current transformations in university-industry-gove...