Productivity and Heterogeneous Knowledge: Exploring the Relationship in a Sample of Drug Developers

This paper aims to investigate the effect of knowledge characteristics on the total factor productivity of firms developing drugs in the pharmaceutical industry. We decompose knowledge into knowledge associated with the technological firm portfolio and knowledge related to R&D projects, which represent drug development at the clinical testing stage. The latter is attributed to the knowledge of relevant markets where the drugs will be sold. The results show that the effect of technological coherence vs. market coherence and of accumulated knowledge on the productivity of firms differs. Productivity increases with the number of patents and decreases with the patent diversity and project portfolio coherence. When considering only the project knowledge, the diversity of the project portfolio positively affects productivity.total factor productivity, diversity,,coherence, knowledge

The impact of creativity on growth in German regions

The objective of this paper is to analyze the impact of the creative professions - technological employees and bohemians - on economic growth in Germany’s planning regions. It is concluded that technological employees and bohemians foster economic growth. We find that growth is particularly dynamic in agglomerated and urbanized regions. Among regional factors relevant to the location decisions of creative professionals, diversity is analyzed in particular, as it might stimulate growth because of its potential to increase the rate of interchange of different ideas and knowledge. Diversity is therefore a “knowledge production factor." The analysis of both - creative professions and diversity - is related to two current topics in regional economics, namely the knowledge based economy and its effects on city development, and the topic of creative cities.Regional Economic Growth, Creativity, Diversity

Diversity and Communication in Teams: Improving Problem Solving or Creating Confusion?

Despite the rich and interdisciplinary debate on the role of diversity and communication in group problem solving, as well as the recognition of the interactions between the two issues, they have been rarely treated as a joint research topic. In this paper we offer a computational model of agents in teams and we assess the impact of various levels of diversity and communication on individual and collective performance at solving problems. By communication we intend a conversation on the persuasiveness of the features characterizing the problem setting. By diversity we mean differences in how agents build problem representations that allow them to access various solutions. We deploy the concept of diversity along two dimensions: knowledge amplitude, that is the relative amount of available knowledge with respect to the complete representation of a problem, and knowledge variety, that, for a given level of knowledge amplitude, regards differences in knowledge constituents Our results highlight the peculiar role and the interactions between the different sources of variety. Regarding knowledge amplitude, when agents have an incomplete representation of the problem, communication provides just confusion as it is difficult to find a common language for sharing thoughts, and agents perform better alone. Adding knowledge variety to this scenario, effects of communication are even more devastating. Conversely, as the representation of the problem gets more and more complete, communication becomes effective and displays a clear non-monotonic effect: after an optimal point, performance declines very rapidly and gets worse than the individual behavior. In this case, the introduction of knowledge variety further increases performance in teams, since benefits from integrating partial representations of the problem occur more frequently than communication clashes. Finally, highly diverse teams seem to be less sensitive to changes in communication strength, while as diversity declines, even small discrepancies from the optimal communication strength level might account for a strong variability of performance. In particular, overestimation of the required communication effort might cause severe performance breakdowns. Our results suggest that organizations and firms should jointly consider communication intensity and different sources of diversity in teams, since interactions among these variables might result in problem solving groups resembling more a Tower of Babel than an effective and helpful workplace.problem solving; diversity; heterogeneous agents; communication; constraint satisfaction; neural networks; causality