Showing papers in "Journal of The Knowledge Economy in 2017"

The Role of Knowledge Economy in African Business

Abstract: This paper assesses the role of knowledge economy (KE) in African business in 53 countries for the period 1996–2010. The four KE components of the World Bank are employed, notably: education, innovation, economic incentives and institutional regime, and information and communication technology. The business indicators are classified into starting, doing, and ending business. Principal component analysis and panel instrumental variable fixed effect approaches are employed as empirical strategies. The findings which are broadly consistent with intuition and the predictions of economic theory suggest that KE policies will substantially boost the starting and doing of business in Africa. This is relevant in fighting unemployment and improving African competitiveness in global value chains. Policy implications for the relevance of each specific KE dimension in African business are discussed with particular emphasis on the theoretical underpinnings of the study. The investigation is original in its contribution at the same time to the scarce literature on African KE and the growing challenges of improving the business climate of the continent by means of KE.

Knowledge Economy Gaps, Policy Syndromes, and Catch-Up Strategies: Fresh South Korean Lessons to Africa

Abstract: Africa’s overall knowledge index fell between 2000 and 2009. South Korea’s economic miracle is largely due to a knowledge-based development strategy that holds valuable lessons for African countries in their current pursuit towards knowledge economies. Using updated data (1996-2010), this paper presents fresh South Korean lessons to Africa by assessing the knowledge economy (KE) gaps, deriving policy syndromes and providing catch-up strategies. The 53 African frontier countries are decomposed into fundamental characteristics of wealth, legal origins, regional proximity, oil-exporting, political stability and landlockedness. The World Bank’s four KE components are used: education, innovation, information & communication technology (ICT) and economic incentives & institutional regime. Absolute beta and sigma convergence techniques are employed as empirical strategies. With the exception of ICT for which catch-up is not very apparent, in increasing order it is visible in: innovation, economic incentives, education and institutional regime. The speed of catch-up varies between 8.66% and 30.00% per annum with respective time to full or 100% catch-up of 34.64 years and 10 years. Based on the trends and dynamics in the KE gaps, policy syndromes and compelling catch-up strategies are discussed. Issues standing on the way to KE in Africa are dissected with great acuteness before South Korean relevant solutions are provided. The paper is original in its provision of practical policy initiatives drawn from the Korean experience to African countries embarking on a transition to KE.

Transformation from an Oil-based Economy to a Knowledge-based Economy in Saudi Arabia: the Direction of Saudi Vision 2030

Abstract: The central aim of this article is to explore issues related to the transformation of an oil-reliant economy to a knowledge economy in Saudi Arabia, a country which witnessed a remarkable revolution following the discovery of oil more than three quarters of a century ago (March 1938). The study provides insights into what the country’s knowledge economy looks like today and the potential policy issues related to how the economy might evolve into the future. Saudi Arabia, a member of G20, is the world’s largest oil exporter and derives about 90% of the government revenue from oil. Based on the documentary analysis (World Bank, United Nations, World Economic Forum, Ministries in Saudi Arabia and newspapers), the findings of this study suggest that there are six key aspects which need to be considered in developing Saudi Arabia’s knowledge economy: human capital, innovation, information and communications technology (ICT), the economy, education and employment. In particular, several challenges are identified relating to human capital, research and unemployment amongst university-educated females. The Saudi government’s Vision (Arabic: 2030 and the related National Transformation Program 2020 both stress the importance of diversifying the economy through development of the knowledge economy. The findings of this study will assist policymakers as they work to create sustainable knowledge economy framework for Saudi Arabia. Further research is required to compare the pillars of the knowledge economy in the Middle East.

The Impact of FDI Inflows and Environmental Quality on Economic Growth: an Empirical Study for the MENA Countries

Abstract: This study examines the impact of foreign direct investment (FDI) inflows, environmental quality, and capital stock on economic growth in 17 Middle East and North African Countries (MENA) countries. We did our analysis in the panel framework over the period 1990–2012 using both the static (ordinary least squares method (OLS), fixed effect (FE), and random effect (RE)) and dynamic (difference-generalized method of moments (Diff-GMM) and system-generalized method of moments (Sys-GMM)) panel data approaches. The empirical results show that the increases in FDI inflows and capital stock enhance the economic growth process in MENA countries. On the other hand, our findings demonstrated that economic growth in MENA countries reacts negatively to the environmental degradation. These empirical insights are of particular interest to policymakers as they help build sound external and environmental policies to sustain economic growth.

Impact of Information Communication Technology and Economic Growth on the Electricity Consumption: Empirical Evidence from 67 Countries

Abstract: This study investigated the impact of information communication technology (ICT) and economic growth (GDP) on electricity consumption (EC) for a global panel consisting of 67 countries using a dynamic panel data model. We also implement these empirical models for three income panels, namely, high income, middle income, and low income panels. The panel model was used in this study from the period 1990–2012. Our main findings show a positive and statistically significant effect of ICT on electricity consumption when ICT measured using Internet connections and mobile phones. Moreover, the results indicate that economic growth has a positive and statistical significant effect on electricity consumption for four global panels. Financial development is found to have a positive impact on electricity consumption in global panels, middle income, and low income panels. For the high income and middle income, the population has a positive and statistical significant effect on electricity consumption.

Knowledge Management: a Gateway for Organizational Performance

Abstract: Knowledge management (KM) is about enhancing the use of organizational knowledge through sound practices of information management and organizational learning The study emphasizes on information technology, organizational learning, and knowledge management in higher education institutes of Pakistan The impact of knowledge management components and practices are empirically tested through econometric techniques The study uses a sample of 26 universities of Khyber Pakhtoonkhawa (KPK) province of Pakistan, both in the public and private sectors The results indicate that knowledge management practices measured through information technology, organization, and knowledge significantly affect organizational performance of the universities

Becoming a Knowledge Economy: the Case of Qatar, UAE, and 17 Benchmark Countries

Abstract: This paper assesses the performance of Qatar and the United Arab Emirates (UAE) in terms of their achievements towards becoming knowledge-based economies. This is done through a comparison against 17 benchmark countries using a four pillars’ framework comprising (1) information and communication technology, (2) education, (3) innovation, and (4) economy and regime. Results indicate that the UAE ranks slightly better than the median rank of the 19 compared countries while Qatar ranks somewhat below. Results also indicate that both countries lag considerably behind knowledge economy leaders, particularly evidenced in the innovation pillar. Policy recommendations are mainly addressed at further developing the two countries’ research culture as well as improving the incentives to attract top quality researchers and highly talented workers.

Sustainable Development of the Russian Arctic zone energy shelf: the Role of the Quintuple Innovation Helix Model

Abstract: Russia is one of the most important players in the Arctic zone energy shelf with significant economic, security, and political interests in the region. This is primarily because of significant natural resources, in particular oil and gas, on the Russian Arctic territories. Arctic has considerable strategic importance to the national economy. The objective of this paper is to develop the concept of sustainable development of the Russian Arctic zone energy shelf within the framework of the Quintuple Innovation Helix Model which focuses on university-industry-government relations, public and civil society, and the natural environment. The paper presents main characteristics of the Russian Arctic and Arctic’s oil and gas recourses. We determined the strategic importance of the Russian Arctic as a wealth of petroleum and mineral resources. We offered economic and socioecological approach to the Arctic’s sustainable development and paid special attention to the creation of centers of economic growth through the public-private initiatives aimed at knowledge and innovation production and transfer. We estimated social and economic potential of oil and gas shelf projects through the analysis of the possible risks and expectations of main stakeholders. The sustainable development of the Russian Arctic zone energy shelf represents an area of economic, ecological, and social concern, to which the Quintuple Helix innovation model can be applied with greater potential. The Quintuple Helix supports here the formation of a win-win situation between ecology, knowledge, and innovation, creating synergies between economy, society, and democracy, what is the good basis for sustainable development of the Arctic territories and implementation of Arctic Shelf projects.

The Effects of Technological Innovation on the Banking Sector

Abstract: Significant changes have affected the banking sector worldwide due to the major impact of developments and trends in information and communication technology, business intelligence, and risk management strategies. The basic issue to be addressed no longer concerns changes in the banking sector but the ways to better operate in the new business setting in order to redefine relationships with customers, seize the opportunities provided by the innovation processes, and yield adequate returns. A bank willing to progress has to continuously adapt to the evolving economic, financial, and productive context. This work argues about the influence of the advancement and complexity of emerging technologies on the structural and behavioral elements meant as financial criticalities and requirements restricting the strategic development options of banks. Verification of the research hypotheses was made through an empirical analysis of quantitative and qualitative data regarding the period 2008–2011 gathered from a sample of 3190 banks located in 17 countries. The empirical research shows (1) the existence of a negative relationship between financial leverage and the two technological innovations regarding enterprise resource planning software systems and software for management of credit risk were observed; (2) the enterprise resource planning innovation and the software for the management of credit risk seem to influence competences, abilities, and organization of the banking system; (3) the innovations that concern the enterprise resource planning software systems and the software for the management of credit risk increase the earning margin of banks.

The Effects of Location on Firm Innovation Capacity

Abstract: This research seeks to ascertain the extent of the effects of location on the innovation capacities of companies across different industrial sectors. We thus answer the question: Does company location near an urban centre enable innovation capacities? This article argues that company location does wield an effect on innovation capacities, and it is therefore correspondingly relevant to fill this current gap in the literature. Based upon a sample of 884 companies, the econometric models estimated report location as a variable bearing influence on the innovative capacities prevailing in companies. Our results also confirm that the greater the geographic proximity of a company to urban centres, the greater their capacity to innovate. The study also enabled the identification of different levels and types of innovation in accordance with the respective company location.

The Comparative Economics of Knowledge Economy in Africa: Policy Benchmarks, Syndromes and Implications

Abstract: The paper complements the scarce literature on knowledge economy (KE) in Africa by comparing KE dynamics within Africa in order to assess best and worst performers based on fundamental characteristics of the continent’s development. The five dimensions of the World Bank’s Knowledge Economy Index (KEI) are employed, notably education, information and communication technology, innovation, economic incentives, and institutional regime. The empirical evidence is based on a five-step novel approach with data from 53 African countries for the period 1996–2010. Limitations of the beta catch-up approach are complemented with the sigma convergence strategy. Based on the determined fundamental characteristics, computed dynamic benchmarks, policy syndromes, and syndrome-free scenarios, we establish that landlocked, low-income, conflict-affected, Sub-Saharan African, nonoil-exporting, and French civil law countries are generally more predisposed to lower levels of KE, whereas English common law, openness to sea, absence of conflicts, North African, and middle-income countries are characteristics that predispose certain nations to higher KE. Broad and specific policy implications are discussed in detail.

The Balanced Development of the Spatial Innovation and Entrepreneurial Ecosystem Based on Principles of the Systems Compromise: A Conceptual Framework

Abstract: The central research question of this paper is how a regional or national (spatial) innovation and entrepreneurial ecosystem (SIEES) can function in a sustainable mode under conditions of uncertainty of an external environment. As an attempt to answer this question, the authors consider to approach the idea of sustainable development from the standpoint of a nonlinear dynamic stability of open systems through information exchange. Addressing this issue as a multi-criteria decision problem, the authors integrate the concept of the “Innovative Helix” and its modifications, which are describing the interaction of science, government and business, as well as formal methods of game theory and business simulation games as a basis for modeling the process of sustainable development in a spatial innovation and entrepreneurial ecosystem. The purpose and interest of the article is to provide input for further discussion on these and other issues related to organizing and governing the interaction of key stakeholders in such arrangements. In practical terms, also a first case study for Russia will be designed and set up for further discussion.

Evolution of the Knowledge Economy: a Historical Perspective with an Application to the Case of Europe

Abstract: The goal of the article is to explore the evolution of original concept of knowledge economy based on science intensive production sectors toward service type economies which significantly changed the role of scientific research and technological innovation for economic growth. The paper argues that this transition is due not only to the structural changes in global production, but the theoretical evolution and paradigmatic shift of the concept of “knowledge economy” in general and “knowledge” in particular has played a significant role. The paper examines the different interpretation of knowledge within new types of intangible economies (e.g., new/Internet, weightless, service, creative, cultural economies) where knowledge is perceived to be generated not as a product of scientific research but as a service or creative activity and critically examined the role of scientific research in a service led knowledge economy. Additionally, the paper argue how these phenomena, which marked the global economy in the last decades, enable the transition of the standard concept of knowledge economy originated from industrial production and manufacturing to a knowledge economy equalized with various types of expanding intangible economies, primarily those based on service and creative industries.

Determinants of bank Performance: Comparative Study Between Conventional and Islamic Banking in Bahrain

Abstract: In this study, Data Envelopment Analysis (DEA) is used to examine the determinants of banking performance in Bahrain between 2005 and 2009. This performance is analyzed through a comparative study of 12 banks (six conventional and six Islamic banks). A diversity of internal and external banking characteristics were used to forecast this performance. The main of them are the return on assets (ROA), return on equity (ROE), and efficiency (EFF). Our determinant study of bank performance confirms previous investigations. The increase in size of Islamic banks and the rapid growth in the customers’ deposits are the important factors of performance. Moreover, our results indicate that the variables related to the government intervention have a negative impact on the banking performance in the conventional funding model.

Spatial Distribution of Knowledge-Intensive Business Services in a Small Post-Communist Economy

Abstract: The authors examine the patterns and determinants of spatial distribution of selected knowledge-intensive business services in Czechia, a small post-communist country whose capital city holds a strong position and where a significant share of manufacturing and business R&D employment is located in non-metropolitan regions. The central research question asks to what extent the localization of knowledge-intensive business services can be explained by the position of cities in urban hierarchy. Correspondingly, the authors analyse the role of local factors such as regional economic specialization, regional firm size distribution or concentration of (high-tech) manufacturing or business R&D centres. The authors specifically concentrate on the role of large industrial centres in non-metropolitan regions and on the hypothesis of a spatial mismatch between knowledge-intensive business services and manufacturing, dispersed and overrepresented in smaller cities. Empirical results clearly confirmed the former hypothesis. Although the evidence on the latter hypothesis is more complex, it does not hold for the most of knowledge-intensive business services in Czechia.

An Analysis of Factors Influencing Rice Export in Vietnam Based on Gravity Model

Abstract: Vietnam is known as one of the biggest rice exporters in the world. Rice from Vietnam is available in more than 120 countries and territories in all continents in the world. Vietnam’s exported rice increases quickly in terms of quantities, but its export value is not high and increases slowly. Also, it does not ensure the benefits and incomes for the rice farmers. This makes the rice export of Vietnam not effective, unsustainable, and unstable. In order to describe the processes involved in factors influencing rice export in Vietnam, the present study has used the gravity model with research time from 2004 to 2013. According to hypothesis raised in the chapter, results have revealed that the biggest impacts on Vietnam rice export are gross domestic product (GDP), price, population, and exchange rate.

The Creative Development of Fields: Learning, Creativity, Paths, Implications

Abstract: I present a model of the creative development of a field and analysis of the model based on an extensive set of simulations. A field as defined here is a domain for human activity and engagement, including for example standard academic fields as well as practical fields like law, medicine, design, and fields of technology. In the model in this paper, the field is defined in terms of the body of knowledge and elements or products that have been created in the field up to that point. The field begins from an initial state and grows as individuals enter the field and make new contributions; its basic structure resembles a lattice. New elements are created via combining preexisting elements, based on specific rules for combinations; thus I follow much of the creativity literature in defining creativity as creating novel conceptual combinations. The heart of the model is a rational, optimizing model of individual creative development, in which individuals have as their aim maximizing the expected value of their contribution to the field. An individual selects an initial set of elements in the field to learn, then gains intuitive signals about potentially fruitful new combinations based on this learning set, selects additional elements to learn, and finally chooses a potential new element to attempt to make. If the element is viable, it is added to the field, together with any subbundle elements co-created with it. The simulation analysis reveals a rich set of empirical predictions about the development of fields through this process. A first striking find is the diversity of possible paths of development starting from a given initial state. The intuitive signals individuals receive are an important factor in generating this diversity, as signals lead individuals to attempt to make elements they might otherwise not pursue, thus shaping the development of the field in important ways. The results also reveal a high degree of path dependence, generated as individuals build on the work of their predecessors, and interesting temporal patterns for how output in one period is linked with what occurred in the previous period.

ICT, Innovation and Productivity: Evidence Based on Eastern European Manufacturing Companies

Abstract: The main motivation behind this study is to evaluate the relationships among ICT, management practices, innovation and human capital in a sample of manufacturing enterprises in Eastern European countries. Using data from the Management, Organisation and Innovation Survey 2009 for a representative sample of 444 companies in Bulgaria, Poland, Romania, Serbia and Ukraine and using structural equation modelling and ordinary least squares, we examined direct and indirect determinants of labour productivity. The principal finding that emerged from the study is that wage was the main direct determinant of labour productivity. Moreover, the relationship between ICT and its complementarities and productivity has been established indirectly, mainly by enterprise workers’ use of the ICT. The results of the investigation bridge the gap in insufficient academic research about Eastern European countries, extend existing research on the company-level labour productivity determinants and enable comparison of the results at the international level.

Personal values supporting enterprises’ innovations in the creative economy

Abstract: The main objective of this paper is to examine the importance of influential employee’s personal values, which shape development of innovations among employees in enterprises. Enterprises can use for realization of sustainable development different economic concepts of new economy, like very promising creative economy, which inter-relates creativity, knowledge and innovation economies. The paper presents implementation of creative economy in enterprises with research of importance of most influential personal values of employees for development of innovations. Data were collected from 173 employees in Slovenian and 226 employees from Croatian enterprises. This research reduces the gap between well spread theoretical research and less empirical evidences of the theoretical cognitions for a selected problem. The empirical research has revealed the differences in the perception of employees’ personal values, which shape development of innovations between Slovenia and Croatia employees. The paper also reports about the importance of selected personal values of employees, which primarily determine enterprises’ innovations—i.e., creativity, exciting life, varied life and ambition and tests the differences in the employees’ perceived importance of personal values, regarding the impacts of: (1) the country of origin, (2) employees’ work experience, and (3) interaction effect of country of origin and work experiences.

Myths and Realities of Highly Qualified Labor and What It Means for PhDs

Abstract: Competencies and skills of the doctorate holders are frequently perceived a guarantee for professional careers in many occupations and a solid contribution to scientific excellence, country innovation capability, and economic and societal development. The assumption that doctorate holders are easily integrated in economic endeavors proves wrong which calls for a revision of the widespread thinking about this extremely specialized and trained people. Ongoing debates neglect the fact that doctoral degrees are academic degrees which testify degree holder’s competence in research which is to be viewed a profession with specific skills. Innovation per se is hardly included in this profession. Also, PhDs are expected to engage in teaching but against their teaching duties they are not obliged to receive education or training of teaching skills. This is even more remarkable since teachers at primary and secondary level are always educated in teaching methods but tertiary level teachers are not. The essay argues that PhDs should be viewed as research professionals and research as a profession. This requires a change in the perception of both by policy makers but does not say that there is an urgent need for policy intervention in regulating the competencies and skills which are included in the respective professional standards.

The Operationalizing Aspects of Smart Cities: the Case of Turkey’s Smart Strategies

Abstract: Recent efforts to design conceptual maps and models that best outline the definition, typologies, and dimensions of cities that use Information and Communication Technologies (ICTs) for greater advancement have focused on the term “smart city.” To approach this subject beyond a strategical level only, this paper focused on the operationalizing aspects of becoming smarter in order to identify the weaknesses, contradictions, and limitations of smart city projects and action plans prescribed by the policy reports in order to understand how smart city projects work in reality. This paper utilized the case study of Turkey’s initiative beginning in the 2000s of transitioning into an information society as well as its smart city initiatives beginning in the 2010s. The process contains ever changing dynamics that create, transform, and design new reconfigurations in complex socio-technical platforms. By examining diverse local institutional design, context, and differential aspects of smart solution experiences, this paper identified the processes of achieving smart projects by comparing smart city policy reports in order to create a roadmap for other related nationwide projects. Smart projects create policy areas performed by various and multi-dimensional socio-technical reconfigurations which emerge and interact to create and institutionalize new urban solutions. Analyzing the process of becoming smarter reveals three elements of smart city projects: infrastructural dimensions (legal basis, technology, and the coordination between institutions); policy areas and scope; as well as critical performance indicators to evaluate the success and progress of smart city projects.

TRANS-DISCIPLINARITY AND GROWTH: Nature and Characteristics of Trans-disciplinary Training Programs on the Human-Environment Interphase

Abstract: Smart, sustainable, and inclusive growth is the sine qua non for developed democracies today. At the heart of the growth engines of technology innovation and entrepreneurship fed by the fuel of creativity and invention lies trans-disciplinarity (TD) and beyond-the-box thinking (TB2) not just outside-the-box thinking. TD and TB2 flourish at the nexus of theories, policies, politics, and practices when the encompassing socio-political, socio-technical, and socio-economic ecosystem is endowed with a quadruple and quintuple innovation helix structure (Q2IH) organically and flexibly linking government, university, industry, and civil society within an overarching environmental framework. The increasing demand for trans-disciplinary training programs on the human system-environment interphase dovetail in considerations, including the need for addressing complex problems, in a way which transcends the collection of information from a multitude of disciplines and moving towards integrated, more holistic ways of understanding. This paper analyzes core characteristics of university programs adopting this trans-disciplinary approach. They differ from technical expertise programs in their integrated, innovative, and solution-targeted character in which contributions by and dialogues with stakeholders are essential. As trans-disciplinary approaches reach maturity, it becomes increasingly indicated organizing them as 4-year master degrees, entailing a 2-year multidisciplinary training during the bachelor years, completed with a 2-year training targeted towards integration of data and trans-disciplinary practice. In this latter context, attention for uncertainty, tacit knowledge, inspiring case studies, integrated training methods, and thesis-related practice surface more and more as important elements of the program content. In spite of their intellectual attraction and logical necessity, trans-disciplinary approaches also face weaknesses including their non-mainstream scientific character, the lack of methods allowing the integration of non-homogeneous data, the scientifically premature character of tacit knowledge, and the value-loaded aspect of the issues at stake. The extent to which trans-disciplinary programs will succeed overcoming these limitations will to a large extent determine their future.

Erratum to: ICT and Human Capital Spillover Effects in Achieving Sustainable East Asian Knowledge-Based Economies

Abstract: This study assesses the impact of information and communications technology (ICT) and human capital spillover effects on productivity on selected five countries of Association of Southeast Asian Nations, (ASEAN5), Malaysia, Indonesia, Philippines, Singapore, and Thailand, plus three East Asian Countries (China, Japan, and South Korea). The factors identified as inducing productivity of ASEAN-5 + 3 are the single contributions of physical capital, labor, ICT, human capital, and the instantaneous contribution of the quality of these factors. That is articulated as the total factor productivity (TFP). The study contributes to the knowledge by using three variations of extensive and intensive growth theories (such as output model, labor productivity, and capital productivity). In this respect, the results show that the productivity growth of ASEAN 5 is an input driven; however, China has overtaken the second largest economy position in the world and emerged as productivity-driven nation that attracted multination company investment. Meanwhile, Japan and South Korean model has constructed global companies that help them to join the Organization for Economic Cooperation and Development (OECD).

Publication Bias in the Returns to R&D Literature

Abstract: The returns to R&D literature is large and has been surveyed on several occasions. We complement previous surveys by discussing the scope for publication bias and illustrate how formal meta analytic techniques can be used to analyse the problem. We find evidence consistent with positive publication bias and discuss possible interpretations. The bias appears to be particularly strong in the part of the literature that controls for unobserved firm fixed effects. The reason may be that fixed effects specifications are particularly susceptible to measurement errors and therefore have a high probability of producing implausibly low return estimates. Implausible estimates are likely to be filtered out before being reported, and our analysis suggests that 23 % of a hypothetical complete literature is missing. Future reviews should take into account that the full effect of negative specifications biases may be masked by reporting and publication bias.

Appropriate theoretical framework for understanding and analyzing economic issues in knowledge-based economy

Abstract: Identification of every phenomenon in the world implies the application of a proper theoretical framework. In doing so, the various approaches of analysis have been used in different fields of study. In the last two decades, with the rapid growth of scientific and technical knowledge, signs of the third wave of economic revolution have gradually come to view. Although the new economic pattern has its own challenges, having relevant documents in mind, yet new opportunities and solutions proposed by the emerging revolution, owing to the significant increase in growth rate and productivity, have had great potential to meet the economic problems of the contemporary world. The current study seeks to find a powerful and efficient theoretical pattern in order to specify the best relations that govern the economic factors of the new era. The theoretical framework has been based upon the institutional economics; also, a descriptive-analytical method has been applied to analyze the information. The purpose is to find an efficient theoretical pattern to achieve the aforementioned. Indeed, the most important findings of the current research are the following: (1) the knowledge-based economy is facing four major challenges: new waves of increasing uncertainty; increasing importance of human as well as factors affecting his motivation and selection process such as social capital; market failure due to the factors that are agreed upon, such as increasing return to scale and the severe increase in inequality; and the double importance of social changes owing to the institutional reforms. (2) The aforementioned challenges are all of the institutional nature. Hence, a doctrine, which lacks enough consideration toward institutional issues, would be unable to analyze and fully understand the knowledge-based economy. The findings of this paper show that the most apt theoretical framework to analyze the issues related to the knowledge-based economy is the one which is eligible and efficient enough to analyze and scrutinize the institutions and the causal relations between them.

The Effects of Tourism in Greek Insular Settlements and the Role of Spatial Planning

Abstract: During the second half of the twentieth century, Greece has experienced changes on all levels of economic, social, and environmental sectors which are associated directly or indirectly with the rapid growth of tourism. The impacts of this growth have decayed local resources and jeopardized the country’s sustainability in the long term. This kind of development has influenced the country’s insular regions which due to the lack of industrial development have a great dependency with the tourism sector. So the wealth of islander Greece depends almost exclusively upon tourism. Moreover, the intense development of tourism often contrasts sharply with the protection of uniqueness, as it implies urbanization and exploitation of resources. The question that the paper tries to answer is if spatial planning of Greece has managed to control the pressures of tourism in the insular built environment and particularly to the settlements. The current paper examines the way tourism has influenced the Greek insular settlements population and spatial characteristics. It examines the changes of population during the last 20 years and the environmental problems that are caused by the intense development of tourism infrastructures. It also investigates the spatial planning tools that are used in urban and regional levels for the insular areas sustainability. Finally, it argues that tourism should be properly planned and researched in order to achieve equitable return on the resources that are utilized for the provision of tourism services, while ensuring the sustainability of environmental assets.

The Impact of Inequality on Growth Driven by Technological Changes: a Panel of Developing Countries

Abstract: In this work, we will study the relationship between inequality and growth through technological changes. Economists are interested in the impact of economic development on the reduction of the inequalities and vice versa. In other words, the recent literature suggests a negative relationship from inequality to growth through several channels, two politico-economic explanations and four economic arguments. Few studies are concerned with the impact of inequality on technological changes. To enrich this literature, we showed to answer the following question: What is the impact of inequalities on the economic growth driven by technological changes? Based on the technique of Panel data for a sample of developing countries, we were able prove the existence of a negative effect of inequality on the technological changes leading to economic growth.

Envisioning Smart Development in Poland from a Triple Helix Systems Perspective: a Critical Assessment of the Morawiecki Plan

Abstract: The paper explores the newly released plan for innovation-based development for Poland—known as the Morawiecki Plan—from the perspective of the Triple Helix model of University–Business–Government interactions. We start by reviewing the literature on the Triple Helix model and assess its relevance to the reform of the Polish national innovation system. We then examine key elements in the construction of a Triple Helix system in Poland in the period 2007–2014, identifying some mistakes that affect the current functionality of the national innovation system. We then critically analyze the most recent strategic changes proposed under the Morawiecki Plan, drawing on the experiences of benchmark countries similar to Poland, which have successfully gone through the transition from a traditional economy to an open innovative economy. We conclude that strengthening and rebalancing the Triple Helix system in Poland is an essential condition for the successful implementation of the Morawiecki Plan.

Cross-Regional Corporations and Learning Effects in a Local Telecommunications Industry Cluster of China

Abstract: External knowledge is crucial to cluster development. In an industrial cluster of a late-comer country, cluster networks are established based on the outsourcing relationship within the companies of advanced countries. However, it is an issue which is worth exploring whether the industrial clusters of late-comer countries can only rely on the advanced companies in acquisition of external knowledge. By adopting the case of Zhangjiang industrial cluster, this article has two objectives. Firstly, this study tries to understand where the knowledge source of companies comes from. Secondly, this research attempts to understand why this phenomenon exists through the examination of the development of integrated circuit industries for mobile phones. The results indicate that the telecommunications industry is related to national security and engenders enormous economic interests, and that local companies cooperate with each other. In addition, the government encourages the cooperation between local upstream and downstream companies to eliminate the constraints imposed by advanced companies. This cross-regional collaboration relies on the interactions among firms at a national level and the strong demand of the domestic market, which provides local companies with the opportunities to improve innovation capacities and techniques, thereby contributing to cluster development.

The Effect of Knowledge Economy Factors on Income Inequality in the Selected Islamic Countries

Abstract: The importance of knowledge in the economy is so notable that many economists consider its role even stronger than the traditional production factors such as labor forces and capital. Term of knowledge-based economic represents the significance of the mentioned issue. Hence, identification of the components of knowledge economy and its influence on macroeconomic variables can be a step forward to highlight its role in the economy.The present study investigates the effect of the components of the knowledge-based economy on income inequality during 1995–2012, in a selection of the Islamic countries. Therefore, using panel data model, the effect of variables such as education, innovation, information and communication technology (ICT), and institutional regimes of income inequality was studied. There was a significant and positive effect for the components of knowledge, index of institutional economic regimes; positive but insignificant effect for innovation and creativity index; negative and significant effect for the index of education; and negative and insignificant effect for ICT on income inequality in the selected Islamic countries.