Research Summary
Research Summary
Knowledge flows and capability acquisition
By: Willy C. Shih
Description
Technological advancements are a major source of improvement in competiveness, and a firm’s incentives to invest are diminished when the knowledge generated is involuntarily dispersed to competitors. While intellectual property rights can moderate this flow to the extent that protections are enforceable, the protection of intangible knowledge is exceedingly difficult. Spillovers of such knowledge reduce the incentives to invest, and it has been suggested that increases in the amount of spillover both decreases industry R&D intensity and increases the equilibrium number of firms.
In the context of national competiveness, the mechanisms and rate of diffusion of knowledge to countries like China are key question for leaders and policymakers. How long does “catching up” take, or for moving importantly moving from an imitation phase to one driven by innovation? I believe there are two aligned forces that are reshaping international competition in technology – the rising level of abstraction offered in technology building blocks, coupled with the increasingly sophisticated embodiment of know-how in design and manufacturing tools. This stream of my research is studying the efficacy of this pathway.