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Bliss point The normalized K-production function and the Bliss Point (symmetric case: ) when i and j meeting isolation share of differential-K (incremental-type) (invention-type) K-productivity (normalized) equilibrium dynamics under the symmetric-K the 2-person case Bliss point ① ② The two-person case → tendency for the accumulation of too much common knowledge K-productivity share of differential-K the 4-person case possible equilibrium configurations with four dancers quick rotation broader cooperation Between two groups: Increasing differential K possibly switching partners increasing common K increasing common K quick rotation with for all pairs 1 2 meeting of time not meeting of time increasing the fastest differential K between each pair while interacting among the four Patent Price RD Sector (a la Berliant?Fujita) % Public-K % absorption RD Sector Heterogeneous K-workers (population N) Cooperative System for K-production Production of New Ideas Tacit-K Patentable-K (blue prints) New Patents Accumulation Learning Capacity C Self-organization through Square Dance Dynamics of knowledge heterogeneity where (42) (43) (34) (37) (38) Appendix 1: Justification of Knowledge Absorption Function μ(N) ?Capacity constraint on K-absorption ?Assuming the symmetry for all i, and assuming N is sufficiently large, learning capacity (given) K-absorption rate or (56) (99) (56a) simplifying assumptions (1) N : sufficiently large (2) symmetric K-structure at time t for all for any always on the equilibrium path ( ) Bliss point K-productivity in meeting isolation share of differential-K Possibility of achieving the most efficient K-production through the equilibrium dynamics? Possibility of reaching the Bliss Point, and staying there forever? (Conditionally, Yes !) K-productivity Bliss point isolation share of differential-K all active pairs staying here Yes! When N is suffici
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