Technology Management

Preliminary version. Comments are welcomed.

The Economics and Management of Evolutionary Knowledge Diversification*

by

Ove Granstrand

Center for Intellectual Property Studies Dept. of Industrial Management and Economics Chalmers University of Technology SE-412 96 GÖTEBORG, Sweden Phone: +46-31-772 12 09 / 772 12 38 (secr.) Fax: +46-31-772 12 40 E-mail: ovgr@mot.chalmers.se May 25, 2001

*Paper Prepared for the DRUID-conference in Aalborg, Denmark, June 12–15, 2001. Plenary session Theme D: Routines, organisational practices and strategies

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Abstract This paper elaborates on some theoretical issues in economics of knowledge and innovation linked to evolution in terms of growth, diffusion, diversification, relatedness, learning and strategic selection. Properties and idiosyncracies of technical and managerial knowledge and learning in particular and its implications are addressed. Growth and learning by interaction between agents, artefacts and areas of knowledge are addressed as well. Evolutionary knowledge diversification is shown to be conducive to economic growth under certain conditions. Empirical illustrations are given in the context of the firm, in particular a technology-based firm, its strategies and common organizational behavior.

List of Contents 1. Introduction .................................................................................................................... 3 2. Concepts ......................................................................................................................... 3 3. Empirical illustrations .................................................................................................... 5 3.1 Corporate cases ................................................................................................... 5 3.2 Diversification strategies for growth .................................................................. 8 4. Some theoretical...