Title: Makarov Valery L. CEMI, Moscow
1Knowledge Economy
(Case of Russia)
Makarov Valery L. (CEMI, Moscow) E-mail
makarov_at_cemi.rssi.ru Web http//www.cemi.rssi.ru
/
2Plan of Presentation
- Indicators of Knowledge Economy
- Who measures knowledge.
- 3. Difficulties for cross countries
comparisons - 4. Growing competitive structure
- (Case of economics research institutions)
- 4. Examples of Empirical Studies.
- 5. Theory Economics of Knowledge vs Standard
Economics. - 6. Knowledge management.
Points of Attraction
1. Centers of Knowledge Production.
Concentration of intellectual capital. 2. New
institutional structure in the epoch of Knowledge
Society. 3. Generation of demand on Knowledge
direct function of state. 4. Tacit Knowledge
competitive advantage of Russia.
3Knowledge measurement
- Investments into Knowledge production grow faster
then investments into production at large. (3.4
per annum vs. 2.2 average) - in 90-s years for OECD countries
- (See. OECD (2001))
- 90 scientists and engineers live at present.
- 90 quantity of knowledge is produced at the
period of last 30 years.
4Investments into the sector
of knowlegde production
of GDP
5Supply (production)
- Natural (physical) units number of pages,
papers, articles, patents, inventions, new
products, innovative firms etc. - Expenditures on RD, higher education, computer
software - Cost of public goods.
Demand (consumption)
- Citations
- Publications in mass media
- Hits in Internet
- Indicators of patents and inventions
application - Value added in companies of high technology and
science consumption sector
6Indeces, ratings
PPi ,Progressive Project institute, USA Annually
issued started by 1999 ???? The 2002 State New
Economy Index. 21 indicators across 50 states
of US as a base for Integrated index
Centers of Knowledge production
Production of Knowledge is located in few
centers. Consumption of Knowledge is distributed
evenly across states according to PPi
measurement.
OECD department, number of international
associations, government and private institutions
7Production of sectors with high rate of technology
in billions of PPP dollars
Russia 1999 data
RUSSIA
8High technology's products plus services
in billions of PPP dollars
RUSSIA
9Transfer of technologies
in millions of PPP dollars
10Examples of empirical studies
First phase collection of data, second phase
empirical analysis, third phase developing
theory
- 1. Porter M. E. and Stern S., (2000) measure
knowledge by quantity of patents. The tree
findingd of the paper are - Annual flow of the patents is proportional to the
stock of the patents in the country. - There is negative relationship between total
(international) stock of patents and national
productivity of RD. It means that total
international stock of knowledge press national
RD in contrast to common intuition. - Small but positive effect o the patents flow on
TFP (Total Factor Productivity)
- 2. Keller W. (2002) Geographic Localization of
International Technology Diffusion American
Economic Review The paper based on data of OECD
countries, including expentitures on RD and TFP
for manufacturing industries at the period from
1970 to 1995. - Two conclusions
- High technologies (expenditures of which are
concentrated in 5 countries USA, UK, Japanlt
Germany, France) expand to other countries back
proportional to (physical) distance (with
correction to intercontinental dummy) Speed and
amount of technology diffusion grow with time.
3. Bloom N., Griffith R., and Van Reenen J.
(2002) Do RD tax credits work Evidence from a
panel data of countries 1979 1997 Journal of
Public Economics 85, pp.1 31. The paper gives
an empirical proof that investments of private
sector to RD depend on tax holidays. The paper
based on data of 9 OECD countries for the period
of 19 years (1979 1997). The result 10 of tax
free adds 1 for RD investments in short run
and 10 in long run.
11Share of expenditures on basic research
in total RD expentitures ( )
12Distribution of generated profit
- Pazhitnov - 15 000
- Computer Center of Russian Academy of Sciences -
4 mln. - Company Nimtanda gt 1 bln
market value
Tobin's Q
book value
Average Q for Russian companies less then 0.3
Paragraph International Q 40
13Tacit knowledge
Introduced by Polanyi, M. (1966) The Tacit
Dimension, London Routledge and Kegan Paul.
Specific features of Russian culture tacit
knowledge must be competitive advantage of
Russia. Follow traditions, transfer of knowledge
on personal basis, less division of labor.
Informal (groups, family, firms, clubs) education.
- Tacit knowledge of institutions
- Design teams in military industrial complex.
- Submarines, nuclear ice break ships
- Bill Gates Knowledge Workers.
Measurement, capitalization of institutions
tacit knowledge
- Human capital
- Competence
- Experience
- Skill
- Structural capital
- Processes
- Information systems
- Data bases
- Customers capital
- Relations to clients
- Brands
- Trade marks
14An Example of Breakthrough
Fullerens
- Publications 480 (7 of total)
- Authors 750 ( 460 has one paper)
- Patents 44 5
- Grants of National Foundation 122
- Dissertations 15 (1997-98)
- 85 - Acad. Sci, 15 Universities
15New features of Knowledge Economy
- See, for example, Gibbons, M., Limoges, C.,
Nowotny, H., Schwartzman, S., - Scott, P. and Trow, M. (1994) The New Production
of Knowledge The Dynamics - Of Science and Research in Contemporary
Societies, London Sage Publications. - Number of sites of (applied) knowledge
production, grows rapidly. Distribution of
publications says about it. Significant part of
studies does not go to publications. - Greater variety of institutions, involved into
knowledge production. They are - communicate with each other widely.
- New institutions appear in relation to a
problem or substance, not in relation - to standard classification.
- Emerged links are soft and volatile, its depend
on a problem. - In general the system of knowledge production,
distribution, consumption is - growing exponentially in terms of quantity of
links.
16Traditional system
New system
Laboratory mediator consumer of
knowledge Explicit division of labor Market of
knowledge is organized by mediator
Knowledge consumer participates in creation of
knowledge Market of products (knowledge itself)
substitutes by market of services The concept
Knowledge Society perfectly fits into the new
system
17Competitive environment in the
field of economic research
- State universities National Academy under
Federal government Moscow State university
(Economics Department, Moscow school of
economics) Higher School of Economics
Plechanovs Academy Financial Academy State
institute of management - Russian Academy of Sciences 7 research
institutes including CEMI - Government research institutes Institute of
macroeconomics, SOPF, bureau of economic
analysis, center of reforms, center of strategic
analysis and monitoring institute under ministry
of economics of RF research group under ministry
of finance of RF. - Non-government research bodies New Economic
School under CEMI, RESEP, CERIR, Gaidar
institute, Illationov Institute, Shanins School,
Institute of open economy under UCOS, EERC,
research department in ALFA bank and others.
18Lessons for Russia
- 1. Leading Russian companies are going to be
major players in Knowledge Economy. (Major
investors in particular) - 2. The government should provide
- incentives to develop high technology business
including its export - (taxes, tariffs, insurance, etc)
- 3. Protection of small business by big
corporations, by local governments