On the dynamics of generation and utilisation of knowledge: The local character of knowledge

In this paper a theoretical framework for the analysis of knowledge suitable to study processes of knowledge generation and utilisation in advanced post-industrial societies is presented. This framework is based on two fundamental properties of knowledge, that of being a co-relational structure and that of being a retrieval/interpretative structure. The paper shows that a third property, the local character of knowledge, can be derived from the two fundamental ones. Furthermore, it is shown that the production of knowledge can be analysed by means of concepts currently used in economics, such as the division of labour, coordination, specialization, competition and so on. Finally, the paper shows that the framework proposed here is compatible with a number of epistemological concepts and theories and applicable to the empirical analysis of processes of knowledge generation and utilization in firms.