The Economics of Knowledge

The economics of knowledge is a rapidly emerging subdiscipline ofeconomics that has never before been given the comprehensive and cohesive treatmentfound in this book. Dominique Foray analyzes the deep conceptual and structuraltransformation of our economic activities that has led to a gradual shift toknowledge-intensive activities. This transformation is the result of the collisionof a longstanding trend -- the expansion of knowledge-based investments andactivities -- with a technological revolution that radically altered the productionand transmission of knowledge and information. The book focuses on the dual natureof the economics of knowledge: its emergence as a discipline (which Foray calls "theeconomics of knowledge") and the historical development of a particular period inthe growth and organization of economic activities ("the knowledge-basedeconomy").The book, which alternates between analysis of the economic transformationand examination of the tools and concepts of the discipline, begins by discussing"knowledge" as an economic good and the historical development of theknowledge-based economies. It then develops a conceptual framework for consideringthe issues raised. Topics considered in the remaining chapters include forms ofknowledge production, codification and infusion, incentives and institutions for theefficient production of knowledge (including discussions of private markets and"open" sources), and knowledge management as a new organizational capability.Finally, the book addresses policy concerns suggested by the uneven development ofknowledge across different sectors and by the need to find ways of reclaiming thepublic dimension of knowledge from an essentially privatized knowledgerevolution.