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3475836
DKE Part 3: Information Econ
Description
ECON2540
No tags specified
dke
innovation
information economics
economics
information technology
information
econ2540
bachelor
Mind Map by
stella.kalis
, updated more than 1 year ago
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Created by
stella.kalis
over 9 years ago
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Resource summary
DKE Part 3: Information Econ
Increased opportunities
SMEs
Large corps use external knowledge resources to give competitive advantage
Large corps = Venture Capitalists
Low Barriers to Entry
internet reduce costs of entry for startups: >$5000 + labour VS >$250,000 in 90s
Open Source Software; Cloud computing, cheap online accounting, legal services
Convergence
E-delivery:
Improvement in supply chain mgmt
new ways of doing business
digital disruption
Network Externalities
networks -> entre's: Strategic Alliances
between Social and Business entres
Ecological Sustainability Innovations
Since 1950s shift from large firms innovating to entre econ
Complexity & Turbulence of KBE -> greater Uncertainty -> Firms disintegrate to form Networks
Cohesion
Aus Start Up Scene
E.g. Atlassian, Freelancer.com; Owen Kerr (Pepperstone online forex)
Pros
well networked
vibrant
strong success stories
good overseas connections
US, UK, Asia, EU
readily available seed money $100K
Good human capital
Cons
lack of venture capital funding
lack of workld-class broadband
little govt. support, policy ,funding
Information Economics
study of agents and institutions concerned with the production, communication and consumption of information.
adds information dimension to neoclassical
Information = resource with costs
economics of inquiring communicating and deciding
Info = public good
Productivity growth via Innovation not longer hours / higher wages
Processes of Knowledge Production, Diffusion, Storage & Use
adsorb a large proportion of resources in the economy
knowledge industry: >50% of output related to knowledge activites / processes.
+ve externalities
Govt finances:
education
media
R&D grants, tax concessions, R&D by govt (CSIRO)
telecomms
WHY?
Public Good, with positive externalities
Avoid Market failure
Technology technology results in continuous change
No Equilibrium
Info Econ given insigts into:
Lack of efficiency of market mechanisms
public policy (market & govt relations)
Key Features of Information
Inexhaustible
Accumulative: value enhanced by disemmination; synergy when new info added
Intangible but can be embodied in Goods & services
public good:
non-rivalrous, indivisible, inexhaustiable
Tech clusters gain from econom of scale (incr. returns).
Comparative advantage of large monpanies in knowledge industries
Networks more attractive, give exponential returns to members
free-rider problems
Problems:
Digital distribution of knowledge goods
Music, News: Moving from physical to digital distribution'
need to overcome disruption by changing business model to adapt
Piracy
Knowledge resource allocation:
tech allocated by non-market mechanisms
Non transferrable: Both retain.
Therefore any trd of knowledge incr. stock of knowledge in the economy (Social Benefits)
Funded by:
Government (Taxes)
Charity
Asymetry
1. Do Due Diligence
2. Use laws to force companies to be transparent
3. Ethics
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