Localized Appropriability: Pecuniary Externalities In Knowledge Exploitation

Pecuniary externalities are crucial in shaping the strategies to value the distinctive competences and the economic success of innovative firms. The analysis of conditions for localized knowledge appropriation and exploitation makes it possible to identify idiosyncratic production factors. The introduction of directed technological change biased towards intensive usage provides the opportunity for the exploitation of technological knowledge. Recent advances in the economics of knowledge enable important progress to be made in understanding the key role of pecuniary externalities in knowledge exploitation.