The End of the Knowledge Monopolies

1. The indicators of Knowledge diffusion

1) Patent(USPTO)

huge companies↓ small firms, individuals↑
US companies → other countries

2) Change of Industrial R&D by size of Enterprise

25,000+: 70.7%(1981) → 25,000-:58.7%(1999)

3) increasing of college and post-college graduates.

these movement make finding a value on the outside easily

2. Characteristics of abundance knowledge age

(1) labor mobility ↑ (lifetime employment↓)

(2) Pension with the worker (not with the job)

(3) Venture Capital

(4) abundant external Knowledge

: you can choose new idea on diverse menu(university,…)

* The change of meaning of NIH(not invented here)

NIH: exclusion of outside technology → relying on external sources

3. how to access external knowledges

(1) employing professor or graduate students of a professor

(2) funding external research at nearby university

: Scanning of new ideas( by proposals from researchers) before spending money

(3) scouting the activities of young start-up companies

– business development discussion
– strategic alliances
– giving money to interested venture capitalists
– investing directly in promising start-up companies

* Example

1) Intel

(1) the relyied almost entirely on external research
(2) assessing what is available form the outside → charting its own course inside
(3) very well thought-out program of funding university research projects
( $100M/year)

2) IBM, Merck ( successful firms in former paradigm)

→ into the wealth of external knowledge

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