The uneven and imperfect character of markets

The markets are imperfect in that the actors that act; they have unequal power and, consequently, the competition does not lead to the victory of the best, but - often, only to the stronger. Market globalization makes that inequality in "game conditions" on the market to become even greater. There are many "bottlenecks" and "obstacles" in the way of equal competition[1] due to market imperfections and different interests that actors have in relation to mutual exchange activities.

The access to resources is a major dimension of inequality, thus the need for knowledge of many actors is not accompanied by a real demand (supported by his obtaining means). The market blocks often the flow of knowledge from one actor to another, contrary to the social needs of this flow that takes place as soon as possible. The markets are limited in that many areas of social life and they cannot be covered (fully or partially) by the market. Thus, health, environmental protection, basic research, education are key areas of society that cannot be subject to market relations. You cannot judge in terms of economic (cost) that should be allocated as health, environment, education, basic research. There are means to attract private capital to these objectives, but - in essence - their subsidy is based on commodity-money relationship. Because of these limitations and imperfections of markets the specialization involves fragmentizing.

What are the networks of cooperation?

Heterogeneous networks of cooperation bring big changes in the functioning of the economy by establishing relations of cooperation and mutual exchange of activities between autonomous actors (institutions) without market mediation. This creates "actor-network" acting within the network as a single actor with a complex variety of activities. The division of labor within the network appears as operating within the same company. The market acts directly on the entire network. Obviously, because the network does not mean a merger of companies (which stops working before), but a cooperation of independent companies that can leave the network or act in other directions outside the network, each network independent company continues to face separately with the market. Even within the network, and a practical component companies compete with each other. Instead of zero-sum competition (in which a firm gains to the extent that another loses), the network establishes a positive-sum competition (in which all players can win together or lose together).

Excluding internal market operating processes, heterogeneous networks of cooperation, establish a system of organizational competence involving correlated network actors (diagrams 1 a, 1 b).

The scheme la Transfer of cognitive innovative through market relations

The scheme la Transfer of cognitive innovative through market relations

Scheme 1b Technical science market networks[2]

Technical science market networks

The European Union now discusses a number of economic issues relating to the applicability of legal principles and networks. There is, for example, the problem of designing a new system to protect innovations throughout the Union. "It is clear that both small and innovative young scientists need patent protection at the European Union (...). Once again the research emphasizes the requirement for cheap patent protection and readily available valid throughout the European Union (...). The responses from industry and public research organizations differ in terms of how these think the best way to avoid postponing the publication. Industries of all sizes promote application of patent protection as the most effective measure, and large industries are fully-all against a grace period as the most important measure to minimize delays for publishing scientific results."[3]

It requires development of specific legislation outside economic exchange market through participation in benefits to the network.

  • [1] *** (1992) Global Perspective 2010 - Tasks for Science and Technology, vol. 1, (a report for EC-FAST Programme, Commission of the European Communities Brussels, 32 and the next).
  • [2] Callon Michel et alii (1995), La gestion strategique de la recherche et de la technologie L 'evaluation des programmes. Paris: Economic Publishing House, 110.
  • [3] *** (2002), "To Publish or Patent?" Cordis - foeur. European Commission Luxemburg, no. 192, 4.
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