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CHAPTER 10
THE INTERNATIONAL KNOWLEDGE STRUCTURE: CONTROLLING FLOWS OF
INFORMATION AND TECHNOLOGY
Overview
Wealth and power often flow from access to and control over knowledge and technology. In this
chapter we examine ways in which knowledge and technology are created, diffused, and governed.
After defining the knowledge structure and identifying the main actors in it, we look at the
political economy of information. The key point is that governments and private businesses are
keen to control and manipulate flows of information. The international political stakes are high as
evidenced by the recent problems of “fake news” and massive leaks of government information
We then examine how developed countries try to foster innovation through a variety of policies
affecting technology, research, and skilled workers. We analyze comparative trends in state-funded
R&D and the drawbacks of relying on the private sector to spearhead national innovation efforts.
We also explain mechanisms by which the United States seeks to prevent foreign state and foreign
The second half of the chapter switches gears to focus exclusively on intellectual property rights
(copyrights, patents, trademarks, and geographic indications). We think the IPE literature has
historically neglected IPRs, and we hope that instructors will find IPRs worthy of serious
coverage. We present six different theoretical perspectives on intellectual property—those of
economic liberals, mercantilists, structuralists, constructivists, “balancers,” and “abolitionists.”
Although TRIPS is now the main international agreement that codifies rules and obligations for
states regarding IPRs, we point out that there is growing political controversy over IPRs in
Key Terms
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intellectual property rights (IPRs)
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information sovereignty
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data localization
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Internet of Things (IoT)
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research and development (R&D)
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triple helix
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feed-in tariff
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financialization
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deemed export controls
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compulsory license
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traditional knowledge
Teaching Tips
• While both parts of the chapter are important, individual instructors should feel free to
emphasize either the policies to promote information control, knowledge acquisition,
innovation, and technological development (first part) or the politics of IPRs (second part),
depending upon personal interests, background, and training. In any case, stress to students
that they do not necessarily need to know a lot about law to understand the essentials of
IPRs.
• Students will benefit from gaining a clear understanding of the differences between
different kinds of intellectual property. Moreover, class discussion is enhanced by debating
the relative merits of strong versus weak protection of IPRs. Point out that IPRs are not just
about economics or legal issues; they affect culture, human rights, the creative potential of
individuals, and the rights of indigenous peoples.
• Access to medicines is a particularly good issue to show how patents affect developing
countries. Encourage students to identify other cases where there are tradeoffs between
immediate social goals and the need to maintain long-term incentives for innovation and
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creativity.
• Use popular news items in class to point out sometimes hidden struggles involving such
things as NSA surveillance, counterfeiting, and gene patenting.
• Have students read some State Department cables released by Wikileaks and report on
what they contain.
Sample Essay Questions
1. According to Balaam and Dillman, what four major trends in the international knowledge
structure have become apparent over the last few decades? Comment on their potentially
unsettling or liberating effects.
3. What are some of the likely reasons why the United States opposes the norm of
information sovereignty and policies requiring data localization?
4. For what reasons might it be in a country’s national interest to regulate TNCs’ access to
Big Data and strictly regulate information technology companies and digital services
providers?
5. Why do some scholars think that financialization has negative long-term effects on rates of
innovation?
6. Discuss U.S. policies to protect national technology and government information. Why
does the United States have such a strong interest in this protection?
7. What are Intellectual Property Rights (IPRs) and why are they important in today’s global
markets? Briefly compare and contrast the mercantilist, liberal, and structuralist views on
IPRs.
8. Trade-Related Aspects of Intellectual Property Rights (TRIPS) is a controversial
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agreement. Why?
9. How can a nation create comparative advantage in knowledge-intensive industries? What
roles are played by governments and private businesses?
10. What differences over IPRs are there between the United States and other developed
countries?
Sample Multiple-Choice Questions
1) Which of the following do Balaam and Dillman posit is an important trend in the
knowledge structure over the last twenty years?
a) Human capital and technology are becoming less important than control of land and
natural resources for wealth generation.
2) Which person is the leading force behind Wikileaks?
d) The United States has a surplus in trade of digital and digitally-enabled services.
4) Which of the following scholars argues that the state should have a large role in funding
national R&D and fostering innovation?
a) Robert McChesney
5) Which of the following is not a government innovation policy in developed countries?
a) controls on technology exports
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6) Which of the following statement is correct?
d) R&D spending as a percentage of GDP is higher in the United States than in Japan.
7) Financialization is closely associated with each of the following except
8) The United States seeks to prevent foreign countries from accessing U.S. advanced
technology by
9) Which of the following policies would an IPE scholar probably not consider to be
mercantilist?
a) deemed export controls
10) IPRs are an important issue for developing countries because
a) they need technology transfer for economic development.
11) The act of a state allowing a domestic private company or government body to produce
and sell a good under patent without the consent of the patent holder is called
a) parallel importing.
12) Which of the following statements would an economic liberal probably agree with?
a) Technological laggards need to fight for more “policy space” in IPRs.
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d) an effort by the United States, the European Union, and Japan to protect patent rights
in developing countries
14) Which of the following is an example of efforts by developing countries to advance their
interests in the face of strong IPRs?
a) turning a blind eye to counterfeiting of foreign goods
15) Which of the following is probably the least controversial intellectual property issue?
16) Which statement about copyrights is correct?
d) They are signs and symbols to protect goods and services.
17) Which statement reflects the position of a “balancer” on IPRs?
Suggested Readings and Links
Bonvillian, William B., and Peter L. Singer. Advanced Manufacturing: The New American
Innovation Policies. Cambridge, MA: The MIT Press, 2017.
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Kennedy, Andrew B. The Conflicted Superpower: America’s Collaboration with China and
India in Global Innovation. New York: Columbia University Press, 2018.
Meijer, Hugo. Trading with the Enemy: The Making of US Export Control Policy toward the
People’s Republic of China. New York: Oxford University Press, 2016.
Sell, Susan. Private Power, Public Law: The Globalization of Intellectual Property Rights.
Cambridge: Cambridge University Press, 2003.
Srnicek, Nick. Platform Capitalism. Malden, MA: Polity, 2017.
Audiovisual Resources
Copyright Criminals. Benjamin Franzen, dir. Copyright Criminals, Changing Images, and
ITVS, 2009. Looks at sampling in the hip hop industry and how copyright affects the
creative process .
Shenzhen: The Silicon Valley of Hardware. Jim Demuth, dir. WIRED Video, 2016.
Examines “the unique manufacturing ecosystem that has emerged [in Shenzhen, China],
gaining access to the world’s leading hardware-prototyping culture whilst challenging
misconceptions from the west. The film looks at how the evolution of “Shanzhai” – or
copycat manufacturing – has transformed traditional models of business, distribution and
innovation, and asks what the rest of the world can learn from this so-called ‘Silicon
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