Proceedings of the 12th European Conference on Knowledge ...

Evgeny Popov, Maxim Vlasov and Anna Veretennikova
The present research introduces <strong>the</strong> criteria which have made up a basis for a design and analysis <strong>of</strong>
an institutional environment in a firm in <strong>the</strong> knowledge generation framework. The main purpose <strong>of</strong>
<strong>the</strong>se criteria is to assist in forming such a system <strong>of</strong> institutions, which would let detect and analyze
ineffective zones <strong>of</strong> activity arising as a result <strong>of</strong> insufficient institutional provision.
2.1 Structure <strong>of</strong> an institutional matrix
An institutional matrix is a notion basic core <strong>of</strong> which was developed by K. Polanyi in his work “The
livelihood <strong>of</strong> Man”. Though, despite its being almost as old as neoinstitutional approach in economics
itself, it is essential to note that so far <strong>the</strong> notion has been developed very little (Polanyi, 1977).
R.I. Kapelushnikov describes <strong>the</strong> problem <strong>of</strong> institutional matrix as follows: «Institutional matrix has
been and still is immensely imperfect; in some key areas general rules have not thus far been
developed ; in o<strong>the</strong>rs <strong>the</strong>re still co-exist <strong>the</strong> norms being in so an evident contradiction with each
o<strong>the</strong>r that it gives way to <strong>the</strong>ir occasional misuse and misunderstanding; in thirds “good”, at first
glance, laws do not work, because nothing can make follow <strong>the</strong>m» (Kapelushnikov, 2001).
It is worth mentioning that K. Polanyi does not give a definition <strong>of</strong> a constitutional matrix itself, but
uses it in order to highlight <strong>the</strong> social determination <strong>of</strong> any economy and <strong>the</strong> necessity to consider
social relations when analyzing <strong>the</strong> forms <strong>of</strong> economic interactions (Polanyi, 1977). The authors
believe that each economic system is characterized by its own institutional matrix. However, it is
possible to form <strong>the</strong> basis for an institutional matrix, common for most economic systems <strong>of</strong> <strong>the</strong> same
type.
The present study deals with <strong>the</strong> institutional matrix <strong>of</strong> knowledge generation at a firm’s level. By an
institutional matrix <strong>the</strong> authors understand a whole set <strong>of</strong> economic institutions systematized in a
particular way and meant to provide <strong>the</strong> firm’s activity with generation and application <strong>of</strong> new
knowledge. To design a constitutional matrix a set <strong>of</strong> institutions to fill it up should be drawn. An initial
premise being <strong>the</strong> cost estimation <strong>of</strong> economic institutions via transaction expenses, a list <strong>of</strong> firm’s
expenses connected with <strong>the</strong> knowledge generation sphere has been <strong>of</strong>fered. As an information
source about <strong>the</strong> detail spending we used <strong>the</strong> expenses given in <strong>the</strong> chapter 25 (Tax on pr<strong>of</strong>it) <strong>of</strong> <strong>the</strong>
Tax Code <strong>of</strong> <strong>the</strong> Russian Federation.
Table 1 presents <strong>the</strong> list <strong>of</strong> <strong>the</strong> knowledge generation institutions obtained. Having established <strong>the</strong> list
<strong>of</strong> <strong>the</strong> institutions, <strong>the</strong> institutional matrix <strong>of</strong> knowledge generation was designed.The institution matrix
definition requires all <strong>the</strong> institutions to be systematized in a particular way. The first differentiation
criterion is <strong>the</strong> place <strong>of</strong> <strong>the</strong>ir emergence. That is, <strong>the</strong> endogenous institutions <strong>of</strong> knowledge generation
are <strong>the</strong> institutions emerging inside an economic object, and exogenous are ones being outside it, but
effecting <strong>the</strong> knowledge generation <strong>of</strong> a economic unit under consideration. Systematization on <strong>the</strong>
place <strong>of</strong> emergence makes it easier to understand which institutions can be changed and optimized,
and which ones can only be influenced indirectly and try to reduce <strong>the</strong> expenses resulting from <strong>the</strong>ir
use. The former are <strong>the</strong> endogenous institutions, <strong>the</strong> latter are <strong>the</strong> exogenous ones.
Ano<strong>the</strong>r criterion <strong>of</strong> institutional matrix design is <strong>the</strong> type <strong>of</strong> generated knowledge. In previous studies
<strong>the</strong> authors presented <strong>the</strong> differentiation <strong>of</strong> knowledge regarding <strong>the</strong> rate <strong>of</strong> changes introduced in
innovations and setting apart <strong>the</strong> operational, structural and functional knowledge (E.V. Popov,
M.V.Vlasov, 2009). So, this criterion forms three groups <strong>of</strong> knowledge generation institutions: <strong>the</strong>
institutions <strong>of</strong> operational, structural and functional knowledge.
The institutions <strong>of</strong> operational knowledge are settled norms <strong>of</strong> interaction between economic agents,
emerging (acting) as operational response toward outside conditions, resulting in insignificant
changes in technological processes and followed by a change in information resources.
The institutions <strong>of</strong> structural knowledge are settled norms <strong>of</strong> interaction between economic agents,
resulting in changes in <strong>the</strong> structure <strong>of</strong> an economic subject and followed by a change in human
resources. The institutions <strong>of</strong> functional knowledge are settled norms <strong>of</strong> interaction between economic
agents, acting under significant changes in technological process and followed by a change in capital
assets <strong>of</strong> an economic unit.
Of utmost importance is <strong>the</strong> fact that functioning <strong>of</strong> <strong>the</strong> institutions for functional knowledge generation
causes changes not only in material resources, but in information and labour ones. It is possible to
talk ei<strong>the</strong>r about mutual interaction <strong>of</strong> <strong>the</strong> institutions for generation <strong>of</strong> operational, structural and
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