The evolution of the industrial organisation of the production of knowledge

This work elaborates the notion of localized technological knowledge, based upon the distinction between information, competence and knowledge, and analyzes the emergence of the new knowledge industry. The evolution of the organization of knowledge production is analyzed through four stylized modes: scientific entrepreneurship, institutional variety, vertical integration and technological cooperation. The new trends towards the growth of knowledge-intensive business service industries are detected and underlined. They are considered as the outcome of the institutional formation of a market for knowledge based upon a process of increasing appropriability of localized knowledge based on: the blending of generic scientific information and competence and growing scope of applicability via computer-communication systems; deverticalization of research activities from the boundaries of corporations; the specification of a demand for technological competence; and the specializing of independent firms in the production of technological competence and knowledge.