The Competitiveness of Nations in a Global Knowledge-Based Economy

American National Standards Institute & Global Knowledge Economics Council

Proposed Draft American National Standard

Knowledge Management - Vocabulary

Global Knowledge Economics Council

GKEC/ANSI Knowledge Management Standards
2055 North Kolb Road Suite 131
Tucson, Arizona 85715
+1 (520) 731-3130

September 2001


“It may be argued that, in a sense, all economic theory is about information and knowledge... [but] little headway has been made in terms of a terminology acceptable to all.  There is little agreement on questions such as: What is the meaning of knowledge and knowledge production?  What separations and distinctions between different kinds of knowledge are most useful for understanding the interaction between learning, knowledge and economic development?

Knowledge Management in the Learning Society

OECD 2000


Knowledge Management Vocabulary


This proposed American National Standard defines the fundamental terms relating to knowledge management concepts, as they apply to all areas, for the preparation and use of knowledge management-related standards and for mutual understanding in international communications.

Terms and definitions

Absorptive Capacity

“the firms ability to evaluate and exploit extramural knowledge”

Stoneman 1995: 209 (Cohen)

Active innovation

A “deliberate searching for new markets and techniques, even though there may be no direct market pressure to do so-”

Rosenberg 1982: 219

Actual users

“Sales or knowledge will increase as the number of actual users increases and as the number of units purchased per user increases

Hall 1994:91


Those who become users of new knowledge or an innovation and “go on using the product” or knowledge

HalI 1994:91


“Learning by doing”

Freeman 1997:14


“Learning in doing

OECD 2000:55


Knowledge can be taken or made use of without authority or right

Stoneman l995: 90ff (Geroski)

Audience segmentation

“A communication strategy that consists of identifying certain sub-audiences within a total audience, and then conveying a special message to each of these sub-audiences”

Rogers: 1995:85

Authority innovation-decisions

Choices to adopt or reject an innovation that are made by a relatively few individuals in a system who possess power, status, or technical expertise

Rogers 1995:29

Awareness- knowledge

“Information that an innovation exists”

Rogers 1995:165

Axiom of indispensability

The belief that a product or agent is an important aspect of an economic equation, but also that no effective alternative exist&

Rosenberg 1982: 28

Change agent

“An individual who influences clients innovation-decisions in a direction deemed desirable by a change agency”

Rogers 199S:27


The means by which a message gets from the source to the receiver”

Rogers 1995:194

Codified knowledge

“Potentially shared knowledge”

OECD 2000:19

Collective innovation- decisions

“Choices to adopt or reject an innovation that are made by consensus among members of a system”

Rogers 1995: 28


“A process in which participants create and share information with one another in order to reach a mutual understanding”

Rogers 199S:5-6

Communication channel

The means by which messages get from one individual to another”

Rogers 1995:18


The degree to which an innovation is perceived as consistent with the  existing values, past experiences, and needs of potential adopters”

Rogers 1995:15

Competitive timing

“Whether to attempt to lead or follow in the innovation process”

HalI 1994:205

Complementary technologies (inventions)

Innovations that combine with other innovations to create new inventions.  “Major innovation often requires a combination of complementary technologies in order for any single technology to be effective… For example, optic fiber technology is of no value unless placed within the context of computer-driven, digital communications… The laser was of no particular use in telephone transmission without the availability of fiber optics… The general point is that the impact of invention A will often depend upon invention B, which may not yet exist”

Neef 1998:8-9, 24 (Rosenberg)


“The degree to which an innovation is perceived as difficult to understand and use”

Rogers 1995:16

Conduct variables

Economic strategies such as “prices, output levels, advertising, R&D expenditure, etc.”

Hall 1994:232


“The changes that occur to an individual or to a social system as a result of the adoption or rejection or an innovation”

Rogers 1995:30

Contingent innovation decisions

“Choices to adopt or reject that can be made only after a prior innovation-decision”

Rogers 1995:30

Creative destruction

Innovation opens “new markets and creates the basis for new firms and jobs;” innovation also “close[s] down some old markets and some firms and jobs will disappear”

OECD 2000:21


“An event occurring at a certain time that crystallizes a favorable attitude into overt behavior change”

Rogers 199S:170

Cumulative technologies

“When this periods innovation builds on last periods innovation and lays the groundwork for the next periods innovation”

Stoneman 1995: 116 (Geroski)

Decision-making costs

“The cost of the process of deciding (the required for deciding, the cost of the requisite knowledge, and the ability to fine tune the decision) rather than the costs entailed by the decision itself”

Sowell 1996:23

Decision-making methods

• Binary: yes or no (war or peace, guilty or innocent)

• Continuously variable: incremental decisions (using more or less gasoline, paying higher or lower wages, etc)

o Once-and-for-all (suicide, burning a Rembrandt)

o Readily reversible (turning off a TV show, changing brands of aspirin)

• Individual (buying onions, bread and canned goods in one store or several)

• Package deal (choosing one candidate with all of his political views over another with all of his views)

o Instantaneous: the decision, even if preceded by a long period of deliberation, is made all at once

o Sequential: decisions occur at various points in time as reactions to previous parts of the decision

SowelI 1996: 18

Deductive approach

“Seeking particular applications of general principles which science has uncovered”

Hall 1994:4

Demand side

“Potential buyers”

Hall 1994:3

Demand-pull theory

- Demand: “necessity is the mother of invention:
- demand-pull: an invention where a need was clearly recognized, and a product was created to satisfy that need.

Freeman 1997: 200

Development (R&D)

“Systematic but non-routine technical work directed towards producing new or improved materials, products, and services, including the design and development of processes and prototypes”

Hall 1994:20


“The process by which an innovation is communicated through certain channels over time among the members of a social system”

Rogers 1995:5


“A decision to reject an innovation after it has been previously adopted”

Rogers 1995:21

Discontinuance, disenchantment

“A decision to reject an idea as a result of dissatisfaction with its performance”

Rogers 1995:182

Discontinuance, replacement

“A decision to reject an idea in order to adopt a better idea that supersedes it”

Rogers 1995:182

Discrete technologies

“Innovations more or less stand alone as isolated discoveries”

Stoneman 1995: 116 (Geroski)


“The knowledge business”

OECD 2000:37


“Learning before doing”

OECD 2000:55


“The degree to which an individual feels she can control her future”

Rogers 1995:170

Empty vessels fallacy

The assumption “that potential adopters are blank slates who lack relevant experience with which to associate the new idea”

Rogers 1995:240

Excludable good

“A good is said to be excludable if the owner has the power to exclude others from using it.  Hardware is excludable”

Neefl 1998:52 (Nelson)


“An innovation that represents a relatively unimportant aspect of culture, which diffuses very rapidly, mainly for status reasons, and then is rapidly discontinued”

Rogers 1995:214

Functional source of innovation

Whether the source is user-, supplier-, or manufacturer-led”

Stoneman 1995: 109 (Geroski)


“All the nonhuman objects used in production - both capital goods such as equipment and structures or natural resources such as land and raw materials”

Neef1998:51 (Nelson)


“The degree to which two or more individuals who interact are different in certain attitudes, beliefs, education, social status, etc.”

Rogers 1995:18


“The degree to which two or more individuals who interact are similar in certain attributes, beliefs, education, social status, etc.”

Rogers 1995:18-19

How-to knowledge

“Information necessary to use an innovation properly”

Rogers 1995:165

Human capital

“Knowledge as embodied in human beings”

0ECD 1996:9


“The post-innovation adoption of new technology”

Hall 1994:21


Firms or groups that adopt an innovation in the ensuing process of diffusion

Hall 1994:17-18


Putting an innovation to use

Rogers 1995:20


The direct or indirect payments of either cash or in-kind [remuneration] that are given to an individual or a system to encourage some overt behavioral change”

Rogers 1995:219

Indigenous knowledge systems

Existing practices that are familiar to the individual or social system

Rogers 1995:240

Induced innovation model

“A locus of production possibility points that can be discovered within the existing state of scientific knowledge”, but which can only be attained at a cost in time and resource.

Rosenberg 1982: 17

Inductive approach

“Looking for general principles or laws which ‘explain’ particular events we observe”

Hall 1994:3


Rogers 1995:6

Information (knowledge) technology

Hardware and software that can organize and diffuse large amounts of know-what and know-why information

OECD 1996: 13


The commercial application of inventions for the first time

Hall 1994:2


The “carrying out of new combinations” (Schumpeter)

Nelson 1982:277


“Knowledge that is in demand; an invention that has been introduced in the market and that has proven its relevance for the market economy”

OECD 2000:21


“New creations, which have economic significance by virtue of their adoption within organizations”

OECD 2001 :12


“An idea, practice, or object perceived as new by an individual or other unit of adoption”

Rogers 1995:1 1

Innovation adoption

“A decision to make full use of an innovation as the best course of action available”

Rogers 1995:21

Innovation process

When an enterprise produces a good or service or uses a method or input that is new to it, it makes a technical change . The first enterprise to make a given technical change is an innovator.  Its action is innovation” (Schmookler)

Hall 1994:17

Innovation process

“All of the activities which bring about technological change and the dynamic interactions among them”

Hall 1994:19

Innovation process

The entire range of activities which contribute to producing new goods and services and producing in new ways”

Hall 1994:2

Innovation rejection

“A decision not to adopt an innovation”

Rogers 199S:21

Innovation survey

A tool to “capture information about factors affecting the propensity of firms to innovate, and how knowledge and innovation are diffused in the economy”

0ECD 1996:39

Innovation, global

The first occurrence in an economy of a particular event”

Stoneman 1995:3

Innovation, local

The first occurrence of an event in the unit of observation”

Stoneman 1995:3

Innovation, systems perspective

An approach to innovation in which one or several central innovations lead to many other innovations around the same project or product; eg. electricity: 1) electricity generation, 2) conductor network, 3) electric meter, 4) incandescent lamp

Rosenberg 1982: 59-60

Innovation-decision process

The process through which an individual (or other decision-making unit) passes from first knowledge of an innovation, to forming an attitude toward the innovation, to a decision to adopt or reject, to implementation and use of the new idea, and to confirmation of this decision”

Rogers 1995:20

Innovation- evaluation information

The reduction of uncertainty about an innovations expected consequences”

Rogers 1995:14


“The degree to which an individual or other unit of adoption is relatively earlier in adopting new ideas than other members of a system”

Rogers 1995:22

Interactive learning

The innovation process “in which those involved increase their competence while engaging in innovation”

OECD 2000:23

Interpersonal channel of communication

Communication that “involves a face-to-face exchange between two or more individuals”

Rogers 1995:18


“The devising of new ways of attaining given ends, [including] both the creation of things previously non­existent (using either new or existing knowledge) and the creation of things which have existed all the time (e.g., Penicillin)”

Hall 1994:21


“A thing that is “naturally” directed to reducing the utilization of a factor that is becoming relatively expensive” (Hicks, 1932)

Rosenberg 1982: 14-15

Joint knowledge production

Production of knowledge in which one output is innovation and a second output is learning and skill enhancement

OECD 2000:21


Acronym for “Keep It Simple, Stupid”

Stolovitch 1999: 214


Tracking acronym for “Keep It Simple, Standard, lmpactful, Natural and Graphic”

Stolovitch 1999: 214


“Skills or the ability to do something; often found in tacit knowledge”

0ECD 1996:12

Knowledge adoption

The acceptance by a profession or organization of knowledge disseminated; “more often than not adoption means giving up existing practice”

OECD 2000:40

Knowledge-based economy

“Ideas, innovation and intellectual property are the driving forces”

Neef 1998:83 (Lehman)

Knowledge implementation

The “application of new knowledge or practice.”

OECD 2000:40

Knowledge institutionalization

“Knowledge or practice moving from being an innovation to becoming a sustained, routine practice that is accepted as normal; it endures beyond the time/presence of those who originally adopted it”

OECD 2000:40

Knowledge Management

The production, mediation, and use of knowledge the management of intellectual capital”

OECD 2000:70

Knowledge market

A “buyer, a seller, and a price”

OECD 2000:26

Knowledge production

“Developing and providing new knowledge”

0ECD 1996:21

Knowledge production

“The circumstances under which individuals, groups, or organizations successfully generate new knowledge and practices”

OECD 2000:39

Knowledge sector

A unit in the firm “in charge of producing new knowledge or handling and distributing information”

OECD 2000:25

Knowledge stocks

Accumulated knowledge


Knowledge transfer

“Disseminating knowledge and providing inputs to problem solving”

0ECD 1996:21

Knowledge transfer

“The dissemination of professional knowledge from one person to another”

OECD 2000:76

Knowledge transmission

“Educating and developing human resources”

0ECD 1996:21

Knowledge transposition

“The dissemination of professional knowledge from one place to another (classroom, school)”

OECD 2000:76

Knowledge validation

The process by which knowledge is “shown to be valid by some criterion” (commercial, scientific, pragmatic)

OECD 2000:39

Knowledge workers

Those who do not engage in the output of physical products”

OECD 1996:10

Knowledge-based economy

The production of ideas, not goods, is the source for economic growth

Neef 1998:9

Knowledge-based economy

“Knowledge is now recognized as the driver of productivity and economic growth”

0ECD 1996:3

Knowledge-based economy

An economy which is “directly based on the production, distribution, and use of knowledge and information”

0ECD 1996:7

Knowledge-intensive organization

1. The organization involves intensive use of knowledge (not just information, since knowledge is stock of experience not a flow of information)”

2. “Individual professional members of the organization have high levels of esoteric knowledge that cannot be widely shared, that is, such members are specialized and cannot readily be substituted for one another”

OECD 2000:57



0ECD 1996:12


“Information about who knows what and who knows how to do what”

OECD 1996:12


“Scientific knowledge of the principles and laws of nature”

OECD 1996:12

Law of demand

“Whenever the price falls (rises), more (less) of that commodity will be demanded by an individual whose money income is constant”

Hall 1994:69


“A process, the core of which is the acquisition of competence and skills that allow the learning individual to be more successful in reaching individual goals or those of his/her organization”

OECD 2000:29

Learning organization

An organization which is structured in such a way that the rate of learning and competence building is enhanced (Senge)

OECD 2000:24

Level of competence

What depth of knowledge to acquire from internal and external sources about the firms production technologies”

Hall 1994:205

Linear model of innovation

“A process of discovery which proceeds via a fixed and linear sequence of phases”: knowledge production-knowledge mediation- knowledge application

OECD 1996:14

Mass media channels

The “means of transmitting messages involving a mass medium such as radio, television, newspapers, etc.”

Rogers 199S:18

Material innovation

Qualitative change which arises if the stuff from which a system is built changes, which it may have to do due to structural innovation

Hall 1994:34


“A process by which an experienced practitioner supports a novice during a period of on-the-job learning” (Similar to apprenticeship)

OECD 2000:54


“The degree to which an individual acts as an opinion leader over one topic”

Rogers 1995:293

National innovation system

“The range of institutions which contribute to innovation and the linkages among them”

Hall 1994:18

National innovation system

“The flows and relationships among industry, government, and academia in the development of science and technology”

OECD 1996:7

New growth theory

The attempt to understand the role of knowledge and technology in driving productivity and economic growth -investments in R&D, education, training, and new managerial work structures are key

OECD 1996:7

Non-aligned firms

Multinational corporations

Neef 1998:14

Non-codified knowledge

Knowledge that “remains individual until it is learned in direct interaction with the possessor”

OECD 2000:19

Non-excludable knowledge

“The producer of new knowledge cannot prevent non-payers from using it”

Stoneman 1995: 91 (Geroski)

Non-rival knowledge

The use of knowledge “by one agent does not predude its use by another”

Stoneman 1995: 91 (Geroski)


“The established behavior patterns for members of a social system”

Rogers 1995:26


“The degree to which the results of an innovation are visible to others”

Rogers 1995:16

Opinion leadership

“The degree to which an individual is able to influence informally other individuals attitudes or overt behavior informally in a desired way with relative frequency”

Rogers 1995:27

Optional innovation-decisions

“Choices to adopt or reject an innovation that are made by an individual independent of the decisions of other members of the system”

Rogers 1995:28

Organizational learning

“Learning by interaction”

OECD 2001:17

Organizational memory

“Organizations remember by doing;  the routinization of activity in an organization constitutes the most important form of storage of the organizations specific operational knowledge”

Nelson 1982:99


“The adoption of an innovation by an individual when experts feel that he or she should reject”

Rogers 1995:215

Passive innovation

Response “to direct market pressure, as shown by excess demand or by developing competition and falling profit margins”

Rosenberg 1982: 219


“The degree to which an individual acts as an opinion leader over more than one topic”

Rogers 1995:293

Potential users

A group “which excludes people who would never plan to acquire any of the good” or use the innovation

Hall 1994:91

Preventive innovation

An idea that an individual adopts at one point in time in order to lower the probability that some future unwanted event will occur”

Rogers 1995:70

Principles knowledge

“Information dealing with the functioning principles underlying how the innovation works”

Rogers 1995:166

Private rate of return

“Changes in human skills and competencies at the individual or firm level and the impacts on firm performance”

OECD 1996:42


Production function

This function expresses the technological relation that exists between the quantity of product and the quantities of the factors that cooperate in varying proportions to produce it.  Reducing, for the sake of simplicity, the number of these factors to two, we may mark off the quantities of the product and the two factors on the axes of a system of rectangular space coordinates.  Every point in space that corresponds to any positive and finite values of those three quantities will then represent that quantity of product that can (at best) be produced by the corresponding quantities of factors, and the set of all these points will identify a surface in three-dimensional space, the production surface.  Now let one of the factor quantities be held constant, and cut this surface by a plane at right angles to this factors axis and go through the point on this axis that corresponds to the constant.  The curve of intersection between the surface and the plane will represent Turgot’s law of first increasing and then decreasing returns”

Schumpeter 1994: 7


Production functions

“Labor, capital, materials, and energy; knowledge and technology are external influences on production function.”

OECD 1996:11



“A measure of what can be produced as output from what is put into production as input”

Hall 1994:31



The number of cars, or tons of steel, or ton-miles of freight produced by an average employee… [Reflected in] reservoir of skills and talents and morale, as well as its stocks of machinery and its access to resources”

Neef 1998:35-6 (Heilbroner)


Productivity, hard

“Productivity that results from high technology and massive capital”

Neef 1998:40 (Heilbroner)


Productivity, soft

The increase in output that reflects stronger morale and a genuine feeling of teamwork”

Neef 1998:40 (Heilbroner)


Rate of adoption

“The relative speed with which an innovation is adopted by members of a social system”

Rogers 199S:22



“The use of the most effective means to reach a given goal.”

Rogers 1995:215



“The degree to which an innovation is changed or modified by a user in the process of its adoption and implementation”

Rogers 1995:17


Relative advantage

The degree to which an innovation is perceived as being better than the idea it supersedes”

Rogers 1995:15


Research, process

“A type of data gathering and analysis that seeks to determine the time-ordered sequence of a set of events”

Rogers 1995:188


Research, variance

“A type of data gathering and analysis that consists of determining the covariances among a set of variables, but not their time order”

Rogers 1995:188


Reverse engineering

Taking products apart to find out how to produce them”

OECD 2000:1 7-18


Rival good

“A good is rival if it can be used by only one user at a time… A piece of computer hardware is a rival good”

Neef 1998:52 (Nelson)



“A repetitive pattern of activity in an entire organization”

Nelson 1982:97


Scale-intensive producers

Firms “focus their innovation activities on developing more efficient process technology” (food, cement)

OECD 2000:22



The fact that human wants exceed the means of satisfying them; “knowledge and information tend to be abundant — what is scarce is the capacity to use them in meaningful ways”

OECD 1996:11



“Learning before doing”

OECD 2000:55



The creation, discovery, verification, collation, reorganization, and dissemination of knowledge about physical, biological, and social nature”

Hall 1994:3



Basic research (Schumpeterian invention)

Stoneman 1995:4


Science (broader definition)

“Procedures and attitudes [with] a reliance upon experimental methods and an abiding respect for observed facts”

Rosenberg 1982: 13


Science (narrow definition)

“Systematized knowledge within a consistently integrated theoretical framework”

Rosenberg 1982: 13



“Any kind of knowledge that has been the object of conscious efforts to improve it”

Schumpeter 1994: 7



“Any field of knowledge that has developed specialized techniques which are beyond the range of the mental habits and the factual knowledge of everyday life”

Schumpeter 1994: 7



“Any field of knowledge that has developed specialized techniques of fact-finding and of interpretation or inference (analysis)”

Schumpeter 1994: 7



“Any field of knowledge in which there are people, so-called research workers or scientists or scholars, who engage in the task of improving upon the existing stock of facts and methods who, in the process of doing so, acquire a command of both that differentiates them from the layman and eventually also from the mere practitioner”

Schumpeter 1994: 7



Tooled knowledge”

Schumpeter 1994: 7


Science of technology

“Conscious and systematic applications of natural science to the attainment of given useful effects”

Rosenberg 1982: 43 (Karl Marx)


Science-based producers

Firms “which develop new products as well as processes in close collaboration with universities” (chemicals, electronics, biotechnology)

OECD 2000:22



“A structure that describes appropriate sequences of events in a particular context” (Schank and Abelson)

Nelson 1982:79


Second-loop learning

“Reflecting on what has been learned and on how to design the learning process” (Metalnnovation)

OECD 2000:24



A capability for a smooth sequence of coordinated behavior that is ordinarily effective relative to its objectives, given the context in which it normally occurs”

Nelson 1982:73


Social capital

“The extent within a community of mutual aid, civic engagement, and participation in voluntary associations”  (High levels of social capital in companies are associated with high levels of performance and successful innovation)

OECD 2000:87


Social capital - cultural

“Norms of reciprocity, mutual obligation, and trust between people or groups”

OECD 2000:87


Social capital —structural

“Connections to other persons or organizations”

OECD 2000:87


Social rate-of-return

“The impact of education expenditure and attainment levels in society-at-large on economic growth”

0ECD 1996:41


Social system

“A set of interrelated units that are engaged in joint problem-solving to accomplish a common goal”

Rogers 1995:23


Social system structure

“The patterned arrangements of the units in a system, [which] gives stability and regularity to individual behavior in a system”

Rogers 1995:24



“Knowledge or information that can be stored in a form that exists outside the brain… [It] has the unique feature that it can be copied, communicated, and reused”

Neef 1998:51 (Nelson)


Solow paradox

“The effect of the information technology revolution has been much less dramatic than expected… A major reason is that changes in organizational frameworks have not kept pace with technological changes, thereby creating mismatches which have affected productivity growth negatively”

OECD 2000:22


Sources of technology

“Whether to obtain new technology from external sources or internal R&D”

Hall 1994:205


Specialized suppliers

Firms which “carry out frequent product innovations, often in collaboration with customers” (engineering, software, instruments) -

OECD 2000:22



“Involuntary flows of knowledge” between producers and/or users of an innovation

Stoneman 1995: 111 (Geroski)


Sticky data/information

“Tacit knowledge… Stickiness is directly proportional to the cost of transfer or transposition” (von Hippel 1994)

OECD 2000:77



“Rules” which tell workers what action to choose at each point of a project

Hall 1994:232


Structural capital

“Knowledge capital that is retained by the firm independently of the presence of particular employees information and knowledge embodied in databases, customer directories, trademarks, manuals, technical solutions, patents, etc.”

OECD 2001 :14


Structural innovation

Qualitative changes “which arise if the overall system and its component parts grow (or shrink) at different rates”

Hall 1994:34


Subsidiarity principle

“Leaving decision-making to the lowest possible level consistent with the efficient fulfillment of the responsibility in each case”

Freeman 1997: 423


Supply side

“Potential sellers”

Hall 1994:3

  Supply-dominated producers

“Firms develop few important innovations of their own but obtain some from other firms” (clothing, furniture)

OECD 2000:22


System innovation

Qualitative changes “which arise when different sets of design principles are combined to yield entirely new structural forms”

Hall 1994:34



“Connected and interdependent sets of relationships among the entities under study”

Hall 1994:3


Tacit knowledge

“A skillful performance is achieved by the observance of a set of rules which are not known as such to the person following them” (Polanyi)

Nelson 1982:77


Tacit knowledge

“Knowledge that has not been documented and made explicit by the one who uses and controls it”

OECD 2000:18



The trend towards the internationalization of technology based on global or multi-domestic firms competitiveness rather than just on a nations international competitiveness”

Freeman 1997: 293


Technological change

“Changes in the stock of knowledge” of industrial arts

Hall 1994:1


Technological change

Improvements in the products, production processes, material and intermediate inputs, and management methods in the economic system There are three stages:
1. Invention: the generation of new ideas

2. Innovation: the development of new ideas into marketable products and processes

3. Diffusion: the new products and processes spread across the potential market

Stoneman 1995: 2


Technological paradigm

“A pattern of solutions to selected techno-economic problems, based on selected principles derived from the natural sciences, and specific rules aimed at acquiring new knowledge”

Hall 1994:29



“The social pool of knowledge of the industrial arts” (Schmookler)

Hall 1994:1



“A design for instrumental action that reduces uncertainty in the cause-effect relationship involved in achieving a desired outcome”

Rogers 1995:12



“Research in the pursuit of profit”

Stoneman 1995:4



Applied research (Schumpeterian innovation)

Stoneman 1995:4


Technology choice

Which technologies look most promising and how to incorporate them in the firms products and processes”



Technology clusters

“One or more distinguishable elements of technology that are perceived as being interrelated”

Rogers 1995:15


Technology gap

“The production of new products and processes conferred a temporary monopoly advantage on the producing country and could provide a basis for trade not founded on differences in natural endowments”

Freeman 1997: 338


Technology hardware

“The tool that embodies the technology as a material or physical object”

Rogers 1995:12


Technology software

“The knowledge base for the tool”

Rogers 1995:12


Technology strategy

“The principles through which technology might be harnessed to meet the firms objectives”

Hall 1994:159



“Measuring and comparing the various dimensions of technical performance of a product or production process”

Stoneman 1995: 27-28 (Patel)


Tooled Knowledge

“Science; being defined by the criterion of using special techniques”

Schumpeter 1994 7


Total factor productivity

“The weighted average of labor and capital productivity; an economic analysis of technology in which technological change and its social impact can be correctly assessed only in economic terms”

Freeman 1997: 427



“Quantities to be exchanged at stated prices”

Hall 1994:3



“The degree to which an innovation may be experimented with on a limited basis”

Rogers 1995:16


Transactions costs

SEE: Decision-making costs

Sowell 1996:43



The things that are stored in the wet computer of the human brain, includes both the human capital that mainstream economists have studied and the tacit knowledge that evolutionary theorists, cognitive scientists, and philosophers have emphasized”

Neef 1998:51 (Nelson)



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