Proximity, knowledge integration and innovation: an agenda for agent-based studies

In this paper, we develop a theoretical model able to capture some of the main features that govern knowledge sharing and innovation. We pursue our target developing an agent-based model in which the social network of interactions is specified as a knowledge resource, and knowledge integration is seen as the process by which the resource can be applied to innovation. The results of the simulation exercises show that the initial architecture of acquaintance networks is a crucial factor for innovation. Innovating has proven to be more than simply equating endowments of initial skills with firm performance. In fact, the performance of the system showed high sensitivity to the arrangement of the firm’s initial location in the social network. Moreover, the way in which acquaintance networks were mobilized emerged as a key determinant of innovation patterns. The model presented here is a relatively theoretical, stylized model and we employ it to draw some general, albeit preliminary conclusions, while illustrating some of the theory relevant to the issues discussed. It is argued that the model might serve the purpose of setting an agenda for further research along this line of investigation—that is, knowledge integration patterns and firms partnerships formation.     

Learning for Innovation and the Skill Premium

The computer revolution took very long to pay off in productivity growth in the computer-using sectors. The relative wage of skilled workers, however, has risen sharply from the early days of the computer revolution onward. As skilled workers wages reflect their productivity, the two observations together pose a puzzle.This paper provides a micro-based explanation for the long diffusion period of the computer revolution. The general equilibrium model of growth zooms in on the research process and provides an explanation for sluggish growth with booming relative wages of the skilled. Technological progress in firms is driven by research aimed at improving the production technology (innovation) and by assimilation of ideas or principles present outside the firm (learning). A new General Purpose Technology (GPT) like the computer revolution generates an initial slowdown in economic growth and an increase in the skill premium.Acknowledgement I am indebted to Theo van de Klundert for suggestions and encouragement. Suggestions by Jan Boone, Bas Jacobs, Patrick Francois, Henri de Groot, Lex Meijdam, Niek Nahuis Sjak Smulders, Harald Uhlig and anonymous referees have contributed to the paper.     

Zeit und Produktion

Ohne Zusammenfassung     

HOUSEHOLD AND ENTERPRISE SAVING AND CAPITAL FORMATION IN THE UNITED STATES: A MARKET TRANSACTIONS VIEW

Contrary to conventional macro theory, it is not the consumption function in terms of either the permanent income or the life-cycle theory of saving that has furnished the saving for enterprise capital formation in the United States. Household sector accounts indicate that household gross saving, correctly measured, did not exceed household gross capital formation in the United States over the period since 1947. Furthermore, historical data on enterprise saving and capital formation in the United States, and cross-section tax return data of U.S. corporations indicate that the gross saving for many enterprise sectors has been equal to or greater than their gross capital formation. There are exceptions, however: these same sources indicate that public utilities have borrowed substantially to finance their capital formation. Finally, it is argued that employer pension and insurance reserves held by financial institutions for future benefit payments represent retained income of a nature similar to undistributed profits, and that these constitute a source of saving in the economy.     

The Managerial Lineages of Neoliberalism

Managerialism is often depicted as a key practice of neoliberalism yet relatively little has been written by scholars of neoliberalism about the actual relationship between managerialism and neoliberalism. Usually subsumed under a functional reading of neoliberalism, managerialism has too often been understood simply as a means for neoliberal ends (i.e. to promote market rule or competition). This paper challenges this perspective on the grounds that it conflates practices that stem from two different historical lineages. As we show, managerial governance not only has a very different history than neoliberal theory, but it also rests on different principles. Its development can be traced back to the US defence sector in the 1950s and the pivotal role of the RAND Corporation. On the basis of this historical perspective, we argue for the need to analyse managerialism on its own terms and make the case for considering the rise of managerial science as a paradigmatic shift in governance. In doing so, we show how managerial governance represented a radical rupture from previous management practices and show how it profoundly reshaped how we have come to understand governance.     

PUBLIC POLICY TOWARDS PRIVATE PENSIONS

This paper reviews and evaluates public policy towards private pensions which has developed in the U.S. over the past 60 years. It is shown that research results reported in the literature are not sufficiently conclusive to permit resolution of all, or even the most important, efficiency questions that surround pension policy. Given available information, a series of policy recommendations are made to either retain or alter current federal policy towards pensions. Unanswered research questions that prevent a more definitive set of conclusions are identified and discussed     

The National State and Identity Politics: State Institutionalisation and “Markers” of National Identity

Nationality has been a key identity in international relations for much of the modern period, and the marriage of “nation” and “state” produced a powerful polity – the national state – that dominated global politics. This article investigates the forces that “pushed” and “pulled” nations and states together and explores the factors associated with violent identity politics. It argues that while recent decades have witnessed increasing instances of divorce between “nation” and “state” and a simultaneous proliferation of identity conflicts, the likelihood that identity conflicts will be expressed violently depends both on the character of the state (the timing of state institutionalisation relative to the construction of national consciousness, the democratic or non-democratic nature of the state, and the national or non-national basis for the legitimation of state authority) and on the principal “marker” used to construct national identity (blood, language, culture, religion, or citizenship).     

Corporate financial structure and the funding of private pension plans

One strand of the literature on the employment contract focuses on the role of the contract in the efficient sharing of risk between capitalists and workers. One way capitalists can shift risk to workers is to provide part of workers' remuneration in the form of an unfunded, deferred pension. Since bonds, in the event of bankruptcy or voluntary termination, are typically senior to unfunded pension liabilities, capitalists can also affect their risk by altering the firm's debt-to-equity ratio. These observations suggest that corporate financial structure and the employment contract are interdependent. The paper has two major goals. The first is to take a step towards integrating the theory of corporate financial structure with that of the employment contract. The second is to investigate possible consequences of legislation which regulates the funding of private pensions.