Critical Ideas of Innovation Management: Advantages and Disadvantages

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CRITICAL IDEAS OF INNOVATION MANAGEMENT ( ADVANTAGES AND DISADVANTAGE) Localized knowledge spillover (LKS) is a comparatively recent idea that pertains to one or a few agents of another field or company (generally in research and technology) ending up, intentionally or otherwise, using the innovative ideas of another individual as part of their research . There are various problems with LKS many of which are dealt with economists. These include the following: Where and how do you set its extremal perimeters when does such a concept of knowledge spillover occur What kind of knowledge does this refer to How do you quantify it. It may ultimately be that LKS is more of a 'black box' or, to use the concept of a famous philosopher, Gilbert Ryle to something that was applied in another subject, merely a 'ghost in a machine' that when analyzed more closely is reducible to nothing. The past decade has figured debates back and forth as to whether LKS can be bounded in space or whether they are "Marshallian" (namely, inter-industry). Most studies (e..g Feldman, 1999) conclude that LKS is both intra-and inter-industry and usually occurs near the center of origin. The process seems to be one of three steps: Innovative knowledge generated within a university or firm is leaked to nearby firms this knowledge is a public good and it may be used by more than a few users at the same time The knowledge is transmitted to the nearby users by word-of-mouth or personal
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