This chapter aims to investigate the driving forces in the creation of knowledge and in the process of innovation and the relevance of the governance model with respect to the free market model or the government model in the regulation of the knowledge and innovation networks.
According to a cognitive approach, a conflict is the result of a closer spatial distance between two actors or firms, leading to a contact stimulus and a reciprocal stimulus, which is perceived as a threat for the respective security or identity. This occurs when the two considered parties are characterised by a too large cognitive distance or a too different mindset or culture, which hinders collaboration.
This chapter highlights that the fragmentation of a modern knowledge economy and the pervasive conflicts between various interest groups, conflicts of interests in the roles of the same actors, bottlenecks, rents and income and power disparity in society require a new form of regulation, that is, multi-level governance and new instruments in innovation policies.
The governance or partnership model is based on the principles of negotiation, exchange and consensus, which are different from the principle of authority as in the planning model and from the principle of competition and survival of the fittest as in the free market model. Governance is an approach to the industrial policy that is more suitable to steer or manage a modern capitalist system and the knowledge and innovation networks that characterise this system.
Cappellin, R. (2011), "The Governance of Conflicts and Partnerships in Knowledge and Innovation Networks", Chatterji, M., Gopal, D. and Singh, S. (Ed.) Governance, Development and Conflict (Contributions to Conflict Management, Peace Economics and Development, Vol. 18), Emerald Group Publishing Limited, Bingley, pp. 31-70. https://doi.org/10.1108/S1572-8323(2011)0000018006
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