Along with the development of economies based on knowledge, the importance of knowledge input in production processes … has been increasing. Enterprises may acquire knowledge input by developing their internal knowledge base and/or purchasing … knowledge from external entities. Their internal knowledge base may be developed mainly by employing highly qualified …

Following Garicano (2000), we consider groups whose members decide what knowledge to acquire and how to use this … knowledge in production. If efficient production requires common knowledge, all group members should become workers and acquire … common knowledge. But if efficient production requires diverse knowledge, one group member should become manager, acquire …