The derived demand for knowledge

.

Chapter 6 in Endogenous Innovation, 2017, pp 89-94 from Edward Elgar Publishing

Abstract: This chapter draws attention to the effects of the economic properties of knowledge on its derived demand, an issue that has not received enough attention in the literature. The results of the analysis suggests that, because of the idiosyncratic – Arrovian – properties of knowledge, a chain of effects takes place: i) in downstream markets the price of goods that have been produced using knowledge as an intermediate good falls; ii) consequently the derived demand in upstream knowledge markets – both within corporations and by them to knowledge-intensive business services (KIBS) – has a lower position and, iii) the price of knowledge is lower than it should be were knowledge a standard good traded in competitive markets; iv) this has negative consequences in terms of adverse selection of large-scale, high-quality research projects but, v) possible compensating effects stemming from the use of knowledge spillovers to generate cheaper knowledge. Such results have important implications for economic policy discussions and decisions.

Keywords: Economics and Finance; Innovations and Technology (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.elgaronline.com/view/9781782545132.00012.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:15330_6

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().