Course Hero Logo

Transaction costs shortening of cycle times etc

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 130 - 132 out of 368 pages.

transaction costs,shortening of cycle times, etc. Innovation and ICTs are indeed at the heart of theevolution, connected by the learning processes they stimulate and on which they rely.This co-evolution and congruence of multiple factors raise new challenges and new risks,that become more apparent when they are put in the perspective of the knowledge-basedeconomics.Codification of knowledgeThe question of codification is certainly central in KBE. As stated before, it is far frombeing a trivial one (i.e. a simple transformation into a series of 0 and 1). One importantconsequence of this debate is about the impact of codification on the economy and itsinteraction with ICTs pervasiveness. There would be relatively few “purely” tacitknowledge, but rather the codification would be driven by economic incentives and/orcognitive attention. Two interpretations are proposed (Cohendet & Steinmueller, 2000).According to the first, there is an increasing amount of codified knowledge because thecost of codification is decreasing thanks to ICTs. Correspondingly, this increasingamount would be more and more easily transmitted and diffused throughout theeconomy, at a decreasing cost. Moreover, the economic benefits form codification wouldincrease as more and more codified knowledge is available. In other words, ICTs wouldturn knowledge into like public good (Cowan & Foray, 1997), and allow for increasingreturns as for the codification activity. Therefore, the key point for supporting theeconomy would be to provide access to ICTs to all agents, favour standardisation inICTs, and to support any process of codifying knowledge in a form compatible withICTs. The other view (possibly complementary rather than opposite) is to assume that inorder to benefit in economic terms from the codification associated to ICTs, otherinvestments are required : what is important is the capacity of agents to understand,appropriate and use this codified knowledge as well as other forms of codifiedknowledge, and basing on this to create new knowledge. In other words, the problem isnot the information but the capacity to select, classify this codified knowledge, and morethan this, the cognitive capacity which depends also on education, social structures,access to informal networks, etc. This point had already been partly raised for instance byLundvall (1994) : when more formalized and codified knowledge is available to morepeople thanks to ICTs, the economic value of tacit knowledge increases.Codification compatible with ICTs technical requirements raise other problems andchallenges. For instance :
We have textbook solutions for you!
/Shelly-Cashman-Series-Microsoft-Office-365-Excel-2019-Comprehensive-1st-Edition-9780357026403-219/
The document you are viewing contains questions related to this textbook.
Chapter 9 / Exercise 040
Shelly Cashman Series Microsoft Office 365 & Excel 2019 Comprehensive
Freund/Last
Expert Verified
131the interface and inter-operability of different ICTs equipments, of whichthe cost is far from being really evaluated at firm level as well as at the level ofthe cooperation in supplier-client relations.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 368 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
N/A
Tags
RTD
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Shelly Cashman Series Microsoft Office 365 & Excel 2019 Comprehensive
The document you are viewing contains questions related to this textbook.
Chapter 9 / Exercise 040
Shelly Cashman Series Microsoft Office 365 & Excel 2019 Comprehensive
Freund/Last
Expert Verified

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture