Dynamic Capabilities, the Multinational Corporation, and Capture oF Co-created Value from Innovation
Christos N. Pitelis and David J. Teece
Extant explanations of the nature and scope of firms, such as transaction costs, property rights, metering, and “resources,” can be integrated into a more general capability-based theory of the nature and essence of the firm that recognizes the importance to the firm of creating and capturing value from innovation. The appropriability of returns from creative and innovative activity often requires the entrepreneurial creation and co-creation of markets and business ecosystems. Accordingly, market failure and transaction costs approaches need to be revamped to capture the essence of entrepreneurial and managerial activity that extends beyond the mere exercise of authority within existing firms and markets.
W. Edward Steinmueller
The exploitation of technological and market opportunities in the ICT industries has produced a series of changes in both supply and demand that serve to regulate or channel the rate and direction of industrial growth. The focus of this article is on the micro or building block level, where the programme of economic research has been directed by the goal of explaining the origins and consequences of rapid technological change and cost reduction. By focusing on this level, it is possible to illuminate some of the underlying processes influencing industrial structure and to suggest consequences for policy aimed at promotion of industrial growth and success. The central theme of this article is that the micro foundations or building blocks of supply and demand shape industrial structure and performance as well as influencing the opportunities and limits for government policy (including policies aimed both at promoting industrial growth and regulating economic concentration).
William H. Melody
As new information and communication technologies and services (ICTS) are being applied ever more widely and intensively there is increasing evidence that the economies of technologically advanced countries are in the process of moving beyond the industrial capitalism of the twentieth century to information and communication based ‘knowledge economies’ for the twenty-first century. This transformation is exhibited not only by the rapid growth and development of new ICTS, but more importantly by their pervasive application throughout virtually all sectors of the economy. This article examines some of the generic developments and key characteristics of evolving twenty-first century new knowledge economies that are becoming evident, their implications for market development, and the important issues they are raising for government policy and regulation relating to market governance in the new economy.
Alfonso Gambardella, Paola Giuri, and Salvatore Torrisi
This article focuses on the peculiarities of technology markets and on the firms’ incentives to participate in these markets. It illustrates the differences in the size and importance of the market for technology across different countries, industries, and firms, and reports the available evidence on some forms of technology transactions like patent licensing, cross-licensing, and sale. The central focus is on the firms’ strategies in technology markets, and particularly on the reasons why established companies and small and new firms license their technology to others, sometimes even to potential or actual rivals. This article underlines that markets for technology are becoming larger and more diffused, although their future growth depends on the existence of several barriers to technology trade and on a more substantial involvement of large firms.
Jill J. McCluskey and Johan F. M. Swinnen
The supply of information through commercial media has increased rapidly over the past decades. Commercial mass media has become the key information broker in our society, and it is where most people obtain their information. Mass media has become an important factor in influencing public opinion. Yet the media is criticized as being sensationalistic and biased in its reporting, giving demonstrators prime time coverage and ignoring careful analyses. This article reviews the emerging literature on the economics of the media and its implications for business and government.
Mirko Draca, Raffaella Sadun, and John Van Reenen
This article offers a guided tour to some of the main aspects of ICTs and productivity. It discusses a neoclassical theoretical framework that has been extensively used (either explicitly or implicitly) by most of the studies we survey. It also considers extensions to these theoretical approaches. It details some of the econometric issues involved in estimating the productivity of ICT. This requires some consideration of the estimation of production functions, an area where there has been considerable econometric advance in recent years. It also discusses issues relating to the data, both ideal and actual. Finally, it discusses the results of the empirical studies covering both growth accounting and econometric approaches at the industry and firm level.
This chapter addresses the under-researched area of professional skills formation in a comparative perspective. The first part reviews the main disciplinary frameworks for analyzing the education and training of professionals. The second part develops a comparative political economy typology for categorizing varieties of professional skill formation systems. This section identifies national institutions of relevance for professional skills, which are distinct from the institutions for industrial skills formation. The rest of the chapter discusses specific forces that are transforming the nature of professionals and explores the implications for professional skills and training. In particular, The third part focuses on offshoring and digital technology, and the fourth part on the changing models for legitimizing professions. The chapter concludes by identifying key avenues for future research.