Winner-Take-All Contention of Innovation under Globalization: A Simulation Analysis and East Asia's Empirics

This paper sets out to examine how innovation enhances export competitiveness: The proposition that export volume becomes enhanced as more productivity-enhancing innovation is captured by the exporting economy is the focus of this study. From a Schumpeterian perspective, innovation can be characterized by continuous creation and subsequent diffusion of newer technologies on the basis of the exporters' existing capital stock. Then we highlight the theoretical possibility that concentration of innovative activities in a small group of "winner" economies would lead to larger shares of "winner" economies' exports of innovation-active commodities than those commodities for which technology involved is already mature. The world's export data corroborates this theoretical prediction overall, and a focus upon East Asia has revealed the region's increasing resort to technology-intensive commodity sectors, which has presumably been enabled through attracting technology-bearing inward foreign direct investment. Considering the overall gains from innovation, acceleration of full "cycle" of innovation and imitation might be a desirable option.

Knowledge Creation as a Square Dance on the Hilbert Cube

This paper presents a micro-model of knowledge creation and transfer in a small group of people. Our model incorporates two key aspects of the cooperative process of knowledge creation: (i) heterogeneity of people in their state of knowledge is essential for successful cooperation in the joint creation of new ideas, while (ii) the very process of cooperative knowledge creation a¤ects the heterogeneity of people through the accumulation of knowledge in common. The model features myopic agents in a pure externality model of interaction. In the two person case, we show that the equilibrium process tends to result in the accumulation of too much knowledge in common compared to the most productive state. Unlike the two-person case, in the four person case we show that the equilibrium process of knowledge creation may converge to the most productive state. Equilibrium paths are found analytically, and they are a discontinuous function of initial heterogeneity.

Casting a voice for rural struggles during apartheid : the case of AFRA

This paper explores the attempts to co-ordinate rural resistance and struggles in South Africa during apartheid through a case study of the Association for Rural Advancement (AFRA), a land NGO established in Natal in 1979. It was a small group but had a significant local and national impact. The paper addresses three key questions concerning the character and works of AFRA: (1) What was the character and strategy of AFRA in the politicised context of the late 1970s and 1980s? (2) Was there any historical continuity and discontinuity with early attempts by Natal liberals and African landowners to organise anti-removal campaigns in the 1950s? (3) How and to what extent could AFRA negotiate the increasing influence of the Inkatha and KwaZulu government over Natal rural communities? The paper aims to serve as a critical evaluation of AFRA's strategies and activities, and its relationship with rural communities up to 1990 when land movements became nationwide.