The technological order in ‘informational capitalism’

The shaping of collaborative networks of multinationals with intellectual property rights as intermediaries

Abstract

A conception of ‘technological order’ is proposed to understand the interactions between informational technology and ‘network’ like industrial organizations, which would lead to the accumulation of technology and capital in the ‘informational capitalism. ’ This new form of capitalism has been characterized by Manuel Castells as “the production of knowledge by knowledge. ” By means of the investigation of the recent literatures on the economics of innovation and industrial organization, in addition to empirical research concerning the technological development and socio-economic changes in biotechnology, it is postulated that ‘configurational’ ontogeny of the technology and the tight protection of intellectural property have played an important role in affording the inter-firm collaborations in R & D, hence creating a ‘technological order’ in which technical knowledge is exchanged, combined, and accumulated.