The transformative effects of tacit technological knowledge

Petralia, Sergio, Kemeny, Thomas and Storper, Michael ORCID: 0000-0002-8354-792X (2023) The transformative effects of tacit technological knowledge. III Working Papers (103). International Inequalities Institute, London School of Economics and Political Science, London, UK.

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Abstract

Tacit knowledge – ideas that cannot readily be meaningfully and completely communicated – has long been considered a precursor to scientific and technological advances. Using words and phrases found in the universe of USPTO patents 1940-2020, we propose a new method of measuring tacit knowledge and its progressive codification. We uncover a discontinuity in the production of highly tacit technologies. Before 1980, highly- and less-tacit inventions are evenly distributed among inventors, organizations, scientific domains and subnational regions. After 1980, inventors of highly tacit patents become relatively rare, and increasingly concentrated in domains and locations. The economic payoffs to tacit knowledge also change, as it starts unequally rewarding high-income workers. This suggests a role for tacit knowledge in contributing to the rise in income inequality since 1980.

Item Type:	Monograph (Working Paper)
Official URL:	https://www.lse.ac.uk/International-Inequalities/P...
Additional Information:	© 2023 The Author(s)
Divisions:	International Inequalities Institute Geography & Environment
Subjects:	H Social Sciences > HB Economic Theory T Technology > T Technology (General) B Philosophy. Psychology. Religion > BF Psychology
JEL classification:	O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General
Date Deposited:	05 Sep 2023 14:48
Last Modified:	01 Nov 2024 04:59
URI:	http://eprints.lse.ac.uk/id/eprint/120154

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