Technology Policy in the Knowledge-Based Economy

Patrick Cohendet () and Frieder Meyer-Krahmer
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Patrick Cohendet: BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique, HEC Montréal - HEC Montréal
Frieder Meyer-Krahmer: BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique, Fraunhofer ISI - Fraunhofer Institute for Systems and Innovation Research - Fraunhofer-Gesellschaft - Fraunhofer

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Abstract: Traditional research, technology and development (RTD) policies are inspired by the vision of (partly) linear models of innovation, where the production of new knowledge can be reduced to mere information. The rationale for designing traditional policy instruments is that it is necessary to compensate for market failures that arise from the externalities of new knowledge production. When knowledge is regarded as information its easy reproduction fosters externalities (others may readily access and use it) and market failures (the ability of others to use the information reduces the incentives to invest in its creation). Several types of intervention have been proposed, and even tested, in a bid to come closer to the optimal level of research. David (1993) refers to "The three P's" : public Patronage (prizes, research grants, subsidies, etc.), state Procurement (or Production) and the legal exclusive ownership of intellectual Property that shape government interventions designed to counter the failures of the market. The focus of traditional RTD policies is essentially, therefore, on the conditions of production of new knowledge, and not on the ways that the knowledge is assimilated and diffused through society : according to the traditional vision, agents are supposed to be able to assimilate new knowledge without significant costs.

Keywords: Social Capital; Tacit Knowledge; Absorptive Capacity; External Knowledge; Technology Policy; Europe (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (2)

Published in Patrick Llerena; Mireille Matt. Innovation Policy in a Knowledge-Based Economy : Theory and Practice, Springer-Verlag, pp.75-112, 2005, 978-3-540-26452-1. ⟨10.1007/3-540-26452-3_4⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00279448

DOI: 10.1007/3-540-26452-3_4

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