Digital knowledge generation and the appropriability trade-off

Abstract

The introduction of information and communication technologies (ICT) has changed in depth the organization of the generation of knowledge reducing significantly knowledge absorption cost and improving knowledge interactions. The digital generation of knowledge relies on the systematic access and use of the stock of quasi-public knowledge. ICT enable to reconsider the knowledge appropriability trade-off as it helps to better appreciate the positive role of knowledge spillovers in the recombinant generation of new knowledge, next to the well-known negative effects of the limited appropriability of knowledge on revenues and hence incentives to innovate. This new analytical framework calls for an augmented role of telecommunications policy that should take into account the positive effects of knowledge connectivity on the generation of knowledge.

BIG data – BIG gains? Understanding the link between big data analytics and innovation

“…Further insights into the effects of big data and ICT in general can be obtained from theories of the knowledge production process in firms which build on the idiosyncratic characteristics of knowledge as an economic good, namely limited appropriability, limited excludability and low reproduction costs. As described by Antonelli (2017), these characteristics lead to a trade-off between positive and negative externalities involved in the knowledge creation process. These opposing externalities arise through knowledge spillovers and the resulting availability of a large stock of external knowledge as a quasi-public good on the one hand (Griliches 1979), and, on the other hand, the reduction of incentives for generating new knowledge driven by the ease of imitation (Arrow 1962).…”

“…These opposing externalities arise through knowledge spillovers and the resulting availability of a large stock of external knowledge as a quasi-public good on the one hand (Griliches 1979), and, on the other hand, the reduction of incentives for generating new knowledge driven by the ease of imitation (Arrow 1962). In general, ICT will likely reinforce the positive aspect of these externalities and facilitate the integration of external knowledge (Antonelli 2017). Building on the concept of absorptive capacity developed by Levinthal (1989, 1990), big data technologies potentially lower the absorption costs of external knowledge, i.e.…”

The Digital Transformation of Search and Recombination in the Innovation Function: Tensions and an Integrative Framework*

“…The analysis of the literature points to rather conflicting potential outcomes of digitalization on information flows as well. On one hand, digitalization might eliminate silos (Cross et al, 2006) by increasing internal interfaces among the different organizational units (Antonelli, 2017), which we call “overturning existing knowledge structures.” The improved quality of internal interactions might favor the better use of internal information and capabilities that were dispersed, thus, for instance, favoring a higher quality of alignment of research activities with corporate strategies (Antonelli, 2017). In this line of research, scholars show that internal governance costs, such as information processing costs, monitoring costs, and opportunity costs due to poor information, etc., might be reduced by digitization.…”

Di̇ji̇talleşmeni̇n Ti̇carete Ve Ekonomi̇ye Etki̇si̇

“…Bilgi ve iletişim teknolojilerinde (BİT) gerçekleştirilen yenilikler radikal yenilik olarak kabul edilmektedir. Genel amaçlı bir teknoloji olarak tanıtılmaları, çok çeşitli faaliyetlerde bir dizi teknolojik ve organizasyonel değişiklik sağlamaktadır (Antonelli, 2017). Örneğin telgraf ve internet, icatlarından sonra büyük altyapı yatırımlarına gereksinim oluşturan buluşlardır.…”