Economics Of Knowledge Transaction:an Analysis Framework Based On Transaction Cost

In the study of knowledge transaction, a common problem is that there is no doubt application knowledge compared with theoretical knowledge has greater specificity, but according to the transaction cost theory, why theoretical knowledge worker’s motivation is usually beyond the pursuit of economic interests in none management mechanism? Or, why application knowledge is much more invested than theoretical knowledge? Facts show that asset specificity degree increases in a huger transaction space. Then is it reasonable when the asset specificity’s concepts apply to knowledge? The answer is naturally negative, for the theory is otherwise against the reality. In fact the asset specificity degree of knowledge increases much in a larger market because of special economic attributes. The irreversibility in transaction, the decline of scarcity and the nature separation between ownership and occupation adds a new dimension to the knowledge asset specificity. To be simple, internalization and externalization together makes up a whole knowledge transact cycle, and it can’t be a complete deal lack of any conversion link. So in the study of the knowledge asset specificity, we can’t just consider the internalization part. Base on the analysis of economic character and the transformation mechanism, the paper try to put forward a new dimension to distinguish types of knowledge transaction and investigate transaction cost.