Markets for (Codified, Tacit, Encapsulated, and Firm-Specific) Knowledge

Abstract

Markets for knowledge are increasingly important to innovation, competitive advantage, and economic growth. This paper examines five distinct markets through which knowledge can be exchanged: the market for codified knowledge (licensing), the market for tacit knowledge (alliances), the market for encapsulated knowledge (sale/purchase of sophisticated products), the market for workers’ knowledge (labor mobility), and the market for firm-wide knowledge or capabilities (mergers and acquisitions).

Keywords: Markets for Knowledge, Technology Licensing, Alliances, Learning by Hiring, Learning by Exporting, Learning by Importing, Knowledge Flows

JEL Classification: D23, L22, O31, O34, O38