Stock Of Knowledge Research Articles

A Schumpeterian approach to entry barrier and firm profitability: cycle time of technology

ABSTRACT Entry barrier has long been considered as a major determinant of firm profitability. Although a less competitive market structure has been commonly known as an indicator of an entry barrier, pieces of past empirical evidence are mixed. Moreover, technological factors, such as R&D intensity, have also been considered. However, no satisfactory empirical analysis has been made, mostly due to the lack of a suitable proxy variable that can reflect the technological environment of a sector. This study addresses this problem by trying a new proxy variable, cycle time of technologies (CTT), and shows, using the US firm data, that firms in a sector with a long CTT tend to enjoy higher profitability and values than others. A long CTT of a sector presents a high entry barrier against any entrant because in such sectors, an existing stock of knowledge tends to be important for a longer period of time, making new innovation continuously rely on old knowledge owned by incumbents and protected by patent rights.

The Influence Mechanism of Knowledge Network Allocation Mechanism on Knowledge Distillation of High-Tech Enterprises.

Increasing global development competition highlights the value of knowledge innovation ability of high-tech enterprises. In order to acquire innovative knowledge, the mediating variables of knowledge field activity and knowledge stock ranking are selected; the moderating variables of knowledge resource pooling and knowledge evolution are adopted to construct the conceptual model and theoretical analysis framework of the influence mechanism of knowledge network arrangement mechanism on knowledge distillation; the moderating mediating effect model is derived; and the influence mechanism of knowledge network allocation mechanism on knowledge distillation of high-tech enterprises is clarified. 531 valid questionnaires were obtained online and offline, and non-percentile bootstrap based on deviation correction was used to empirically investigate the influence mechanism and transmission path of knowledge network allocation mechanism on knowledge distillation of high-tech enterprises. The empirical results show that the main effect of knowledge network pairing on knowledge distillation of high-tech enterprises is significant. The results show that knowledge field activity and knowledge stock ranking play a differential intermediary role in knowledge network allocation and knowledge distillation, knowledge field activity plays a partial intermediary role in knowledge network allocation and knowledge distillation, and knowledge stock ranking plays a partial intermediary role in knowledge network allocation and knowledge distillation. Pooling knowledge resources positively moderates the positive effect of knowledge network allocation mechanism on knowledge distillation and significantly positively moderates the mediating effect of knowledge field activity, and there is a moderated mediating effect derived from it. However, there is no significant moderating effect on knowledge stock ranking between knowledge network allocation mechanism and knowledge distillation. Knowledge evolution positively moderates the positive effect of knowledge network allocation mechanism on knowledge distillation, significantly positively moderates the mediating effect of knowledge field activity, and derives the moderated mediating effect. However, there is no significant moderating effect on knowledge stock ranking between knowledge network allocation mechanism and knowledge distillation. This paper makes an empirical study on the effect of knowledge allocation mechanism on knowledge distillation, enriches the connotation and application scope of knowledge distillation, defines the driving factors and formation mechanism of knowledge distillation, and further promotes the knowledge value and knowledge appreciation of high-tech enterprises. It has guiding and reference significance in the acquisition of innovation knowledge and the promotion of competitiveness of high-tech enterprises.

A Review of Digital Era Governance Research in the First Two Decades: A Bibliometric Study

The emergence of digital technologies has profoundly affected and transformed almost every aspect of societal relations. These impacts have also reached public administration, including its governance. Digital technologies’ rise has paved the way for the surfacing of a new public governance model called the Digital Era Governance (DEG) model (often referred to as e-government, digital government, e-governance, or digital governance) in which digital technologies play a central role. Therefore, the main aim of this paper is to provide a comprehensive and in-depth examination of DEG research over the past two decades. Bibliometric analysis is based on the Scopus database that contains 9175 documents published between 2001 and 2020. In this context, several established and innovative bibliometric approaches are applied. The results reveal the growth of DEG research over the last two decades, especially in recent years, as accelerated by several of the most relevant documents published in reputable journals such as Government Information Quarterly. Most DEG research has been conducted in Anglo-Saxon countries, as confirmed while examining the most relevant authors’ affiliations and collaborations. The results also indicate that DEG has advanced from conventional public services to citizen-oriented e-services by including citizens’ participation and, most recently, even to smart services by facilitating emerging and disruptive technologies. The findings add to the stock of scientific knowledge and support the evidence-based policymaking needed to successfully pursue a sustainable future.

Innovation concentration in knowledge network.

This paper studies the increase in innovation concentration levels of U.S. industries over the last two decades. I present a model of imperfectly competitive patent market with heterogeneous firms that generate endogenous variable markups. Theoretically and empirically, the price of a firm’s newly invented knowledge, the profit and survival rate of the innovating firm depends on the market share of this firm’s knowledge stock and the position of industry in the knowledge network. In the process of innovating, firm pays a random fixed cost in each period which together with market share largely determines its decision on whether to innovate into different sectors. I find that firms with larger market share not only invest more in R&D but also enter into more sectors. Since innovating firms could create blueprints for new varieties and manufacture the products that have been invented, I bridge the gap between the product and the R&D markets to document the similar concentration trends between them. I prove that large firms in the product market would charge higher price on their product so that they can charge higher profit which is a part of the value of their knowledge. Lastly, the increasing trend of concentration could decrease consumers’ welfare in the industries with high initial concentration levels.

Export intensity of foreign subsidiaries of multinational enterprises

PurposeThe author contributes to the theory of the multinational enterprise by examining subsidiary-specific capability in financial management, defined as the stock of knowledge and capability to plan, manage, control and direct financial resources effectively and efficiently, and the perceptions of subsidiary managers of host country financial development as drivers of export intensity (the share of sales that are exported) of foreign subsidiaries of multinational enterprises (MNEs). The author theorizes that subsidiary-specific capability in financial management is conceptually a valuable subsidiary-specific advantage and it is as important as other traditional competitive advantages, such as research and development and marketing intensity. Perceptions of subsidiary managers of host country financial development are argued to be largely related to the characteristics of the host country-specific advantages.Design/methodology/approachThe author uses a survey dataset of the foreign subsidiaries of Western multinational enterprises (MNEs) together with other public data sources.FindingsThe author provides empirical evidence to support for these arguments that export intensity of MNE foreign subsidiaries depends on subsidiary-specific advantages and host country specific advantages.Originality/valueThe study broadens the understanding of the relationships between subsidiary-specific advantage in financial management, host country specific advantage, and export intensity of MNE foreign subsidiaries. In this way, the author makes an original contribution to new internalization theory by emphasizing the internal capability building of subsidiaries. The author discusses the implications of the findings for MNE foreign subsidiary managers, and policy makers because exporting is critical to the overall strategy of foreign subsidiaries, and it also contributes to the balance of trade and economic development of host countries where foreign subsidiaries operate.

Fast as a gazelle – young firms gaining from educational diversity

ABSTRACT Young, high-growth firms, so-called gazelles, are an important source of growth and industry dynamics. However, our understanding is lacking on how knowledge competences support high growth among young firms. This article aims to fill this gap by utilising firm and employee knowledge stocks, and diversity in educational backgrounds. The firm’s stock of knowledge capital is measured by intangible capital that is calculated from organisational, product development and ICT investments. The employees’ knowledge stock is approximated by their completed educational degrees. Our data originate from Danish registers and covers 2000–2016. The findings indicate that intangible capital has the potential to increase the likelihood of becoming a gazelle. We further find that educational diversity is beneficial but is moderated by firms’ knowledge intensity.

Role of context in knowledge flows: Host country versus headquarters as sources of MNC subsidiary knowledge inheritance

AbstractResearch SummaryWe respond to calls in the strategy and international business literature for elucidating how multinational subsidiaries develop contextual intelligence in host countries and how they use the local context as a source of valuable opportunities for learning. Applying the theoretical lens of subsidiary absorptive capacity and building on a gravity model, we propose an approach that can distinguish and compare the influences of the host country context and headquarters over the subsidiary knowledge production. Some subsidiaries may become global second headquarters and innovation hubs, as evidenced qualitatively in the paper with the case of Cisco. Essentially, subsidiaries, characterized by higher stocks of knowledge and greater number of locally hired employees are likely to absorb relatively more knowledge from the local host country context.Managerial SummaryManagers at multinational companies have to carefully balance acquiring knowledge from the headquarters, vis‐a‐vis acquiring knowledge from the local context of countries where the firm has subsidiaries. In contrast to a “headquarter‐centric” approach where most of the knowledge management activities are centered around the MNC headquarters, we argue that larger subsidiaries, often characterized by a large presence of local R&D workers, might disproportionately draw knowledge from the local context, rather than from the headquarters. In addition to developing theoretical propositions along these lines, we provide an illustrative example of how Cisco opened a “second headquarters” in India, to learn from the rich local context.

Effects of learning curve models on onshore wind and solar PV cost developments in the USA

Technological innovation planning for developing and deploying clean energy technologies plays a key role in reducing greenhouse gas emissions and transition to a low-carbon future. Learning curve theory has been adopted as a common framework for exploring the relationship between endogenous technological learning and technology cost developments. The aim of this article is to analyse the effects of selecting different learning curve approaches (i.e. model formulations) to describe energy technology cost changes over time. Experience and knowledge stock are chosen as the sources of learning to be considered. A new definition of experience was developed to account for the interaction between global and local experience. The new definition of experience also accounts for learning sub-processes (i.e. learning-by-doing, learning-by-using, and experience spillovers) to estimate total experience gained through technology deployment. An integrative model is developed for estimating the effects of learning-by-deploying and learning-by-researching on cost developments for onshore wind and solar PV in the USA. Publicly available data from government departments and organisations were utilised. It was found that technology cost developments are better explained when: (1) experience is defined as a function of global and local experience; (2) knowledge stock is also considered in the model formulation; and (3) technological processes affect only a fraction of the total capital cost. The findings suggested that the application of learning rates for model-based energy planning is context-dependent and how technological factors are explicitly defined may have significantly different policy implications (i.e. different technology costs predictions based on alternative model formulations).

Knowledge Management Capability and Innovativeness of Public Organizations: Examining the Moderating Roles of Social Capital and Creative Organizational Climate

The main objective of this study is to examine the moderating role of social capital on the relationship between knowledge-oriented leadership and knowledge management capability (KMC). Also, to explore the moderating role of creative organizational climate on the relationship between KMC and public organizational innovativeness is aimed. Structural equation modeling (SEM) was applied to analyze the survey data from 784 tax administrative organizations in Thailand to test the proposed hypotheses. The results presented that knowledge-oriented leadership positively influences KMC. Meanwhile, KMC positively affects public organizational innovativeness. For the moderating effect, the findings indicated that social capital positively moderates the relationship between knowledge-oriented leadership and KMC. Additionally, creative organizational climate positively moderates the relationship between the accumulation of knowledge stocks and organizational innovativeness. Surprisingly, creative organizational climate negatively moderates the relationship between the regulation of knowledge flows and organizational innovativeness. These empirical results provide some recommendations for executives of public organizations in recognizing how to appropriately play a leadership role for effective knowledge management. Simultaneously, they could support important internal factors such as social capital and creative organizational climate to enhance their knowledge management capability and organizational innovativeness.

What cause regional inequality of technology innovation in renewable energy? Evidence from China

Regional inequality of technology innovation associated with renewables may lead to insufficient innovation growth over the long-term, which impedes the deployment of renewable energy and slows down low-carbon transition. This paper aims to explore the major contributors to regional inequality of technology innovation in renewable energy by taking China as a representative example. Three groups of variables including regional attributes, supporting policies, and local official characteristics are proposed as potential explanatory factors. A set of panel data covering both the photovoltaic and wind energy sectors in 31 Chinese provinces from 2008 to 2017 are collected for the empirical study. Gini coefficient is used to quantify the inequalities of renewable technology innovation, while Shapley decomposition method is applied to evaluate the contribution of each significant factors. The results show that the overall Gini coefficients of photovoltaic and wind technology innovation in China are 0.65 and 0.62, respectively, indicating medium-level regional technology innovation inequality in both sectors. Knowledge stock (46.44%), R&D expenditure (36.56%), green fixed industrial investment (13.53%), electricity consumption (1.33%), and the energy-related experience of local officials (0.05%) are significant contributors to regional inequality of photovoltaic innovation. Knowledge stock (45.20%), R&D expenditure (37.90%), electricity consumption (8.63%), feed-in tariffs (1.02%), and the tenure of local officials (0.18%) are significant contributors to regional inequality of wind innovation. Therefore, eliminating regional inequality of technology innovation in renewables should start with balancing regional R&D expenditure and knowledge stock.

Knowledge Sharing Strategy and Emission Reduction Benefits of Low Carbon Technology Collaborative Innovation in the Green Supply Chain

Knowledge sharing (KS) in the green supply chain (GSC) is jointly determined by the KS efforts of suppliers and manufacturers. This study uses the differential game method to explore the dynamic strategy of KS and the benefits of emission reduction in the process of low carbon (LC) technology in the GSC. The optimal trajectory of the knowledge stock and emission reduction benefits of suppliers and manufacturers under different strategies are obtained. The validity of the model and the results are verified by numerical simulation analysis, and the sensitivity analysis of the main parameters in the case of collaborative sharing is carried out. The results show that in the case of centralized decision-making, the KS efforts of suppliers and manufacturers are the highest, and the knowledge stock and emission reduction benefits of GSC are also the best. The cost-sharing mechanism can realize the Pareto improvement of GSC’s knowledge stock and emission reduction benefits, but the cost-sharing mechanism can only increase the supplier’s KS effort level. In addition, this study found that the price of carbon trading and the rate of knowledge decay have a significant impact on KS. The study provides a theoretical basis for promoting KS in the GSC and LC technology innovation.

System dynamics approach of knowledge transfer from projects to the project-based organization

PurposeAlthough knowledge transfer in the context of projects and project-based organizations (PBOs) has gained increasing attention from academia and industry, it is not clear how knowledge transfers from projects to their parent PBOs. This research aims to explore the main factors influencing knowledge transfer from projects to their parent PBOs, and analyze how these factors integrate the transfer process as system components using the system dynamics (SD) method.Design/methodology/approachBased on the literature review, investigation and interview, this paper adopts the event analysis to obtain the influencing factors from historical cases and establishes a conceptual model of knowledge transfer from five dimensions, which simultaneously considers the knowledge sender, knowledge receiver and the relationship between the knowledge sender and receiver, knowledge features and transfer context. Then, the relationships between variables in the qualitative model were clarified, and a quantitative model including seven feedback loops was established using the SD model. Lastly, the system simulation and sensitivity analysis of the main parameters were realized in Vensim PLE software.FindingsThe simulation analysis results show that the model can simulate the knowledge transfer process from projects to the PBO to a certain extent. This research fully demonstrates the impact of variables from five dimensions on knowledge transfer and incorporates the knowledge gap and transfer threshold in the research category. Moreover, the rationality of seven feedback loops proposed in the model was verified. And the effects of various factors on the amount of knowledge transferred and the PBO's knowledge stock were examined through sensitivity analysis. Furthermore, recommendations for developing an integrated knowledge transfer mechanism of PBOs and projects to enhance transfer effect are offered.Research limitations/implicationsThis research provides other researchers with a systematic understanding of transfer process from projects to PBOs, and insight for further research on knowledge transfer in project and organization contexts. Furthermore, this study guides researchers to focus on the causal processes that constitute knowledge transfer and explores the expected and unexpected phenomena generated over time. However, some variables involved in the transfer process are simplified, and the establishment of a more complex dynamic model needs further research and discussion.Practical implicationsBy establishing a simulation model for knowledge transfer from projects to their parent PBOs, this study helps project teams and PBOs grasp the overall picture of the transfer process. Especially, this paper provides target-oriented recommendations for project and PBO managers to implement effective knowledge transfer practices, which have certain practical values for knowledge cultivation, coordination, reuse and innovation in the organization.Originality/valueThis study contributes to knowledge management and project management literature by simulating the knowledge transfer process from projects to their parent PBOs. Additionally, this paper provides a reference for PBO and project managers to establish an integrated knowledge-transfer mechanism in the work process and comprehensively implement effective knowledge transfer practices.

Agri-food entrepreneurship. Harvesting, growing and reseeding the orchard through a bibliometric study

PurposeScholarly literature on entrepreneurial activities in the agri-food sector has flourished over the years in several different ways. This study uses the metaphor of an orchard to describe how this stream of literature has evolved from its initial “seeds” to the rich and diversified “fruits” of current debate. It is now time to harvest and catalogue these “fruits”. This study aims to map out and systematise the current stock of knowledge on agri-food entrepreneurship, so as to identify gaps and thus “plant” new seeds for the future of the “orchard”.Design/methodology/approachTo identify thematic clusters, this study used a bibliometric analysis coupled with a systematic literature review performed over a dataset of 108 peer-reviewed articles.FindingsThe results revealed six thematic clusters related to agri-food entrepreneurship: ecosystems, formal and informal institutions; contextual entrepreneurial practices; community and stakeholders’ engagement; barriers and opportunities; entrepreneurial orientation; and sustainable entrepreneurship. After investigating each of them, this study created a framework to highlight future avenues through which the topic could be further developed.Originality/valueTo the best of the authors’ knowledge, this study is the first of its kind to systematise, analyse and critically interpret the literature concerned with agri-food entrepreneurship.

Pouring new wine into old bottles: A dynamic perspective of the interplay among environmental dynamism, capabilities development, and performance

In order to face increased environmental dynamism (ED), firms are increasingly called on to leverage deliberate learning processes that make dynamic capabilities emerge in a path-dependent way from the conversion of tacit knowledge to explicit knowledge. Moreover, to mitigate the effect that ED can play in eroding a firm’s capabilities and subsequently its performance, managers need to effectively align short- and long-term strategies, which in the literature have been addressed as ‘capability traps’. Although these two processes are strictly interrelated, to date they have been treated in quite an isolated way and usually through the development of linear approaches. To fill this gap, leveraging the knowledge-based view and dynamic capabilities theories, a conceptual system dynamics model was developed in this study to reconstruct the causal intertwined relationships existing between ED, capabilities development, and a firm’s performance. Moreover, by building a stock and flow diagram and simulating different scenarios, it was found that the most effective way to cope with ED is to dedicate efforts in both knowledge stocks’ development and process improvement. The paper thus offers theoretical contributions to each of these three literature streams (i.e., knowledge-based view, dynamic capabilities, and system dynamics) and provides a framework to guide managers and decision-makers into arranging deliberate organisational learning processes and fostering organisational alignment between short- and long-term policies.

Network exploration and exploitation capabilities and foreign market knowledge: The enabling and disenabling boundary conditions for international performance

This empirical study analyzes how strategic orientations influence the relationships between exploration and exploitation-related networking capabilities, foreign market knowledge, and market performance of 198 internationally operating firms in Bangladesh. The results of hierarchical regression showed that a higher level of network exploration capability and network exploitation capability individually generate greater foreign market knowledge. In addition, our results show that international entrepreneurial orientation reinforces the positive effect of network exploration capability. The positive association between market knowledge and performance, in turn, is accentuated by a proactive export market orientation but attenuated by a responsive export market orientation. These findings suggest that, while both types of networking capabilities are beneficial to develop stocks of foreign market knowledge, firms can acquire and create greater knowledge if they strategically align entrepreneurial orientation with network exploration capability. Further, to use this market knowledge with the goal of improving their position in international markets, firms need to develop a proactive rather than a responsive export market orientation. The current study contributes to the literature on networking capabilities by analyzing firms' networking capabilities with the lens of exploration-exploitation typologies and incorporating strategic orientations as the contextual factors of such capabilities.

A Bi-objective Model of Research and Development in Battery Manufacturing Industry to Improve Customer Satisfaction

Reviewing the efficiency of Research and Development (R&D) by giving an equal amount of importance to different R&D actions can make the measuring process too simple, which may cause an inaccurate interpretation of the R&D function and lead to an imprecise interpretation of R&D models. R&D comprises the creative work undertaken on a systematic basis to increase the stock of knowledge, including knowledge of man, culture, and society, and the use of this stock of knowledge to devise new applications. This research provides a two-phase approach to designing an R&D model in the auto battery manufacturing industry based on customer satisfaction. Due to the important role of R&D in customer satisfaction, no study has been conducted in this field and industry. In the first phase, the effective models for R&D management and the indices influencing customer satisfaction in R&D models are identified. In the second phase, the significance coefficients related to the customer satisfaction indices are obtained by using the fuzzy SWARA (Stepwise Weight Assessment Ratio Analysis) as a multi-criteria decision-making method. Furthermore, each model’s importance and final priority are calculated by the fuzzy COPRAS (Complex Proportional Assessment) method. Finally, to apply the proposed framework in the battery manufacturing industry, a bi-objective R&D model is presented. The coefficients obtained by the fuzzy COPRAS method are utilized as the input for the proposed model. Therefore, policy-makers and managers can perform their activities based on this method. The obtained results showed that the proposed framework is effective in the case under study.

Knowledge Diffusion, Trade, and Innovation across Countries and Sectors

This paper provides a unified framework for quantifying the cross-country and cross-sector interactions among trade, innovation, and knowledge diffusion. This framework is used to study the effect of trade liberalization in an endogenous growth model in which comparative advantage and the stock of knowledge are determined by innovation and diffusion. The model is calibrated to match observed cross-country and cross-sector heterogeneity in production, innovation efficiency, and knowledge spillovers. The counterfactual analysis shows that a reduction in trade costs induces a reallocation of R&D and comparative advantage across sectors. Heterogeneous knowledge diffusion amplifies the specialization effects of trade-induced R&D reallocation, becoming an important source of welfare. (JEL F12, F14, O33, O34, O41)

Should and will "cultured meat" become a reality in our plates?

Produced from proliferating cells in bioreactors with a controlled culture medium, "cultured meat" has been presented by its supporters, who are mainly private actors (start-ups), as a sustainable solution to meet the growing demand for animal proteins without weaknesses of animal husbandry in terms of environmental impact, animal welfare or even health. The aim of this chapter is to take stock of current knowledge on the potential benefits and pitfalls of this novel product. Since robust scientific arguments are lacking on these aspects, there is no consensus on the health and nutritional qualities of "cultured meat" for human consumption and on its potential low environmental impact. In addition, many issues related to the market, legislation, ethics and consumer perception remain to be addressed. The way in which this new product is regarded appears to be influenced by many factors related mainly to its price, as well as to the perception of safety, sensory traits but also environmental and nutritional issues. Therefore, research by universities and public research institutes indicates that "cultured meat" production does not present any major advantages in economic, nutritional, sensory, environmental, ethical or social terms compared to conventional meat. Thus, a more balanced diet by diversifying our sources of plant and animal proteins, consuming other meat substitutes, and reducing food losses and waste appear to be more effective short-term solutions to the urgent need of producing enough food for the growing human population (while reducing environmental degradation and animal suffering).

Action and Unintended Consequences: Counterfinality’s Paradox as a Sociological Problem

Counterfinality is the unintended consequences that stem from uncoordinated actions. Counterfinality problem can be described as a complex theoretical problem, including the problems of understanding the motive for action, the transition from individual goals to collective results, and unintended consequences. Understanding the motive for action is an initial challenge in the study of counterfinality. This problem is well studied in sociology, and the ideas of authors such as Weber and Schütz are still relevant. Understanding the motive for action can be accomplished by having a stock of social knowledge and an understanding of typical situations and the typical motives. However, any attempt to describe a motive for action is only a hypothesis, and the actual course of events is the basis for understanding action, and therefore ethnographic observations come first in describing counterfinality. After that, it is important to trace the transition from these actions to collective irrational consequences. Such a transition is possible because of the shortsightedness of individuals focused only on personal goals. In addition to these misperceptions, unintended collective consequences can have other conditions of occurrence: insufficient information, publicly voiced predictions and etc. The presented sequence of description of counterfinality from action to consequences is a theoretical reference point and a more detailed description of all stages of counterfinality emergence is the task of a particular empirical study.

УПРАВЛІННЯ ЗНАННЯМИ В СИСТЕМІ РОЗВИТКУ ЛЮДСЬКОГО КАПІТАЛУ НА РИНКУ ПРАЦІ

The relevance of the study of the impact of knowledge management and human capital development at the labor market on economic growth is determined by the need to overcome imbalances in the socio-economic development of Ukraine. The article is dedicated to the identification of the main features of human capital development, to the assessment of its level in Ukraine, as well as to the factors identifying the impact of knowledge management and human capital development on economic growth. The development of human capital is considered to be the most important prerequisite for ensuring sustainable economic growth in Ukraine. The main features of the development of human capital as a resource for increasing productivity and, consequently, the growth of capitalization at the micro, meso and macro levels is the accumulated stock of production competencies and inseparable knowledge and abilities. The correlation of the quality of knowledge flow management and GDP is revealed, the density of which reflects the desire of highly developed markets to attract investment in human resources development and the formation of demand for new knowledge. The high level of human capital accumulation in Ukraine is confirmed by the analysis of the range of international rankings, including 32nd place in the Global Innovation Index 2020 with the rate of 37,7% for knowledge-intensive employment. It is noted that to ensure economic growth it is necessary to apply the knowledge gained by citizens in the labor market. It is proposed to assess the effectiveness of knowledge management in the system of human resources development in the labor market by measuring its contribution to the economic growth of the regions of Ukraine. It is recommended to choose the growth rates of production, labor productivity, and the elasticity of employment growth as targets. It was found that the growth of human capital has an impact on productivity growth and the elasticity of employment growth. As human capital grows, the elasticity of employment growth will decrease, which makes the economy of the regions less labor-intensive and leads to greater economic growth. The simulation allowed us to identify the main factors of the direct and indirect impact of human capital development on the level of economic growth. In the future, it is proposed to study the models of human capital development under crisis conditions and to develop strategic guidelines for knowledge management at the institutional level.