Digital Information Systems and Global Flagship Networks: How Mobile is Knowledge in the Global Network Economy?

in: J.F. Christensen (ed.), The Industrial Dynamics of the New Digital Economy, Edward Elgar, Cheltenham

43 Pages Posted: 25 Apr 2016

See all articles by Dieter Ernst

Dieter Ernst

East-West Center; Centre for International Governance Innovation (CIGI)

Date Written: October 10, 2002

Abstract

Two defining elements of the “global network economy” are the evolution of global flagship networks (GFNs) and the increasing use of digital information systems (DIS) to manage these networks. Both transformations may gradually reduce constraints to cross-border knowledge diffusion, and hence enhance the mobility of knowledge. We thus need to reconsider and amend the proposition, formalized by agglomeration and innovation economists and network sociologists, that knowledge is less mobile than markets, finance or production facilities. As a first step towards an appreciative theory, the paper explores how distinctive features of GFNs (concentrated dispersion and hierarchical integration) that are enhanced by DIS, shape international knowledge diffusion. We highlight opportunities, pressures and incentives that may result from network participation, and explore how they affect the absorptive capacity of local network suppliers.

Keywords: Networks, knowledge diffusion,information systems,multinational corporations, Internet,industry dynamics, capabilities, global production networks

JEL Classification: D2, F2, L6, L8, M2, 03, R3

Suggested Citation

Ernst, Dieter, Digital Information Systems and Global Flagship Networks: How Mobile is Knowledge in the Global Network Economy? (October 10, 2002). in: J.F. Christensen (ed.), The Industrial Dynamics of the New Digital Economy, Edward Elgar, Cheltenham. Available at SSRN: https://ssrn.com/abstract=2769697

Dieter Ernst (Contact Author)

East-West Center ( email )

1601 East-West Road
Honolulu, HI 96848-1601
United States

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

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