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CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology KTH/CESIS Working Paper Series in Economics and Institutions of Innovation

No 247:
Innovation, Technology and Knowledge

Charlie Karlsson, Börje Johansson and Therese Norman

Abstract: This paper outlines a set of fundamental changes in the global economy that have altered the nature of the innovation process, brought about global challenges, and stimulated cross border phenomena and network formation responses. These changes has brought about an increase of the demand for knowledge as well as changed the conditions for knowledge production and innovation. Against the background of a changing global economy, the purpose of the paper is to make an overview over the role and drivers of innovation, technology and knowledge. The role of absorptive capacity and knowledge flows between economic agents from different spatial units for economic growth is further emphasized. Furthermore, it is recognized in the paper that national innovative productivity depends upon the national innovation systems. Multinationals play an increasingly central role for the transfer of knowledge between different parts of the world. This paper thoroughly examines the way multinationals contribute to innovation, technology and knowledge dispersion. The distribution of knowledge investments is uneven across the globe and the occurrence of the “European paradox” highlights where Europe has failed in this context.

Keywords: Innovation; technology; knowledge; globalisation; multinationals; European paradox; (follow links to similar papers)

JEL-Codes: O33; (follow links to similar papers)

20 pages, April 7, 2011

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