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Review Essay : Linkages Between Knowledge Creation, Diffusion, and Utilization

That knowledge creation, diffusion, and utilization are linked is widely recognized. But despite this widespread recognition, until relatively recently there was no foundation for understanding the nature and direction of these relations. This foundation lacking, much of the literature makes no explicit provision either for the complexities of these relations or for the institutional arrangements and alternatives underlying these relations. Some recent progress in diffusion research, in the economics of information, and in understanding the process of technological innovation is changing this picture. This review describes selected clusters of research having to do with knowledge relations and indicates the limited attention to institutional factors in these literatures. These clusters focus on the relations between scientific discovery and technological innovation, and on the relations between diffusion and generation of technological innovations, primarily in industrial firms. Some of the &dquo;new&dquo; directions are expounded and citations are provided to major previously intractable problems in the literature. As Feller (1979) indicated, in his review essay on diffusion research, at least in some circles the dominant approach in economics, which has emphasized the importance of profits to adoption of innova-