Social scientists are paying attention to the role that knowledge plays in economic phenomena. This focus on knowledge has led to exploring two challenges: first, its governance to reap positive externalities and solve social dilemmas, and second, how we can craft institutions to match the intangible nature of ideas with adequate property rules. This article contributes by elaborating on the different knowledge property regimes and the elements contributing to their classification. This paper first taxonomises knowledge governance regimes based on Ostrom’s work on institutional analysis. Second, it examines why governance structures for managing knowledge production vary across industries, according to (1) the characteristics of knowledge, (2) the attributes of the organisations, and (3) the different rules-in-use to enforce property rights. This is the first study at the intersection of institutional analysis and political economy that highlights the knowledge features, incentive structures, and mechanisms undergirding knowledge governance in different property regimes.

Much theoretical and empirical work by economists and psychologists has shown that the neo-classical approach is defective, and economists are now looking for an alternative. Evolutionary economics is the answer. It starts from the realistic premise that society and the economy are shaped by competition, but unlike neo-classical economics, it proceeds empirically by observing and analysing what has been happening to the economy and society. It does so on the premise that a process of social selection is taking place, analogous but not identical to that of biological selection. This dynamic approach requires a revival of economic history. By reporting on, and inviting debate over, what is happening and its implications, the adoption of an evolutionary approach should help restore the moral content of economics and the surrounding social sciences. Such a change in approach would be a paradigm shift, and will take time. That it will happen is likely: in the end facts kick.