Saturday, April 08, 2006

Innovation Journalism as an Essential Element in the new Endogenous Theory of Growth

Erkki Kauhanen
Originally uploaded by Innovation Journalism.
Erkki Kauhanen, Researcher and Journalist at the Journalism Research and Development Centre, University of Tampere in Finland gives a more philosophical view of innovation economy. It has in its core a dynamics that in terms of the so called new growth theory (NGT), is called endogenous growth. It is based on the idea of knowledge being a "non-rival good" (with relatively little extra cost that is) knowledge can multiply like a plant and it can therefore be used by several agents at the same time. That makes possible "increasing returns".

"One of the main alchemistic mechanisms whereby knowledge is turned into gold, or efficiency gains, is technological complementarities. It refers to old and new technologies (sensu lato) supporting each other, producing together more than each would have accomplished alone, thus opening new avenues of development.

It is claimed in this article that this dynamics is only possible on the condition of effective and efficient communication. Especially horizontal communication that 'transgresses' technological boundaries is important and fertile.

Usually economic theories treat the process of knowledge multiplication as a black box and do not pay attention to how it is happening. Therefore, all too often, it doesn't. Here innovation journalism has its most natural area of application."


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