The evolution of the industrial organisation of the production of knowledge

This work elaborates the notion of localised technological knowledge, based upon the distinction between information, competence and knowledge, and an alyses the emergence of the new knowledge industry. The evolution of the or ganisation of knowledge production is analysed through four stylised modes: scientific entrepreneurship, institutional variety, vertical integration a nd technological cooperation. The new trends towards the growth of knowledg e-intensive business service industries are detected and underlined. They a re considered as the outcome of the institutional formation of a market for knowledge based upon a process of increasing appropriability of localised knowledge based on: the blending of generic scientific information and comp etence and growing scope of applicability via computer-communication system s; deverticalisation of research activities from the boundaries of corporat ions; the specification of a demand for technological competence; and the s pecialising of independent firms in the production of technological compete nce and knowledge.