Know-how and X-inefficiency: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Created page with "1. ''Law - European Union (EU) - UK - technology transfer agreements''. For the purposes of regulating technology transfer agreements, EU and UK law define know-how as: :...")
 
imported>Doug Williamson
m (Layout.)
 
Line 1: Line 1:
1.  ''Law - European Union (EU) - UK - technology transfer agreements''.
A term from economics referring to a firm's tendency not to maximise output from its installed equipment, systems, or personnel as simple economic theory might suggest.
For the purposes of regulating technology transfer agreements, EU and UK law define know-how as:


:" a package of practical information, resulting from experience and testing, which is:


:(i) secret, that is to say, not generally known or easily accessible,
It is often explained by agency costs as managers pursue their own objectives not the interests of shareholders. But sheer human failing may also be important.


:(ii) substantial, that is to say, significant and useful for the production of the [relevant goods or services], and
X-inefficiency may also be applied by extension to an industry or to a whole regional or national economy.


:(iii) identified, that is to say, described in a sufficiently comprehensive manner so as to make it possible to verify that it fulfils the criteria of secrecy and substantiality."
An X-efficient firm may, of course, not be allocatively efficient - producing the "right" outputs using the best mix of inputs to produce them.


:''EU Technology Transfer Block Exemption Regulation 316/2014 - retained EU law in UK''


'''Reference:''' Leibenstein, Harvey ("Allocative Efficiency vs. X-Efficiency", American Economic Review 56(3), June 1996, pp 392–415) is normally taken as the source of the term X-efficiency.


2.  ''Other contexts.''


Technical or practical knowledge gained from research or experience, that enables an individual or organisation in possession of it to implement a process.


Examples include the successful use of a patent.
==See also==
 
* [[Agency theory]]
 
*[[Efficient market]]
== See also ==
* [[Balance sheet]]
* [[Brand]]
* [[Fixed assets]]
* [[Goodwill]]
* [[IAS 38]]
* [[Impairment]]
* [[Intangible assets]]
* [[Intellectual property]]
* [[Law]]
* [[Patent]]
* [[Recognition]]
* [[Research & development]]
* [[Retained EU law]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Revision as of 11:07, 9 January 2019

A term from economics referring to a firm's tendency not to maximise output from its installed equipment, systems, or personnel as simple economic theory might suggest.


It is often explained by agency costs as managers pursue their own objectives not the interests of shareholders. But sheer human failing may also be important.

X-inefficiency may also be applied by extension to an industry or to a whole regional or national economy.

An X-efficient firm may, of course, not be allocatively efficient - producing the "right" outputs using the best mix of inputs to produce them.


Reference: Leibenstein, Harvey ("Allocative Efficiency vs. X-Efficiency", American Economic Review 56(3), June 1996, pp 392–415) is normally taken as the source of the term X-efficiency.


See also