This book makes a strong and coherent contribution to the discussion of the knowledge economy and of innovation, offering a range of theoretical insights from different disciplinary perspectives. The role of knowledge, knowledge development, and knowledge diffusion is discussed at the micro level of individuals and firms, and also at the level of groups of firms and sectors, as well as at the level of the economy at large. Dolfsma analyses knowledge development and diffusion as a thoroughly social process, depending on communicative structures to support cooperation. The author combines insights from economics and management with perspectives from sociology (network theory), anthropology (gift exchange), social psychology, science studies and information theory (scientometrics), using empirical analyses to demonstrate where knowledge impacts the dynamics of an economy.