The knowledge economy there are many who argue that we are moving towards a new knowledgebased economy or knowledge society, in which the role and significance of knowledge as an input to economic processes has fundamentally changed. In the end of the paper, the author presents the importance of economy knowledge, in romanian organizations. A knowledgebased economy is pivotal in achieving sustainable development as envisioned in saudi vision 2030, said dr. The strategy helps in building a knowledgebased economy under vision 2040. At least three lines of research fall under this umbrella. Importance of knowledge in our life knowledge is considered as the state of knowing facts and information acquired with the help of experience and reading books.
The rise of a new type of economy termed knowledgebased economy kbe is one of interesting phenomena observed in the contemporary world. Evolution of civilization over the years is due to increase in the knowledge base of the humans. And although the knowledgebased economy kbe thesis may have been overstated, it is difficult to deny that important changes. Abdul aziz alsebail, the secretarygeneral of the king faisal prize. The electronic journal of knowledge management volume 5 issue 4, pp. Opinion articles from the worlds thought leaders and home yahoo answers. This article provides information about the knowledge economy with its distinctive features. In knowledge economy, a large portion of economic growth and. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Importance of knowledge in our life essay and speech.
The role of knowledge in economic growth gunnar eliasson1 1. On a superficial level, businesses in the knowledgebased economy are just those with a high proportion of highly educated. The following are illustrative examples of the knowledge economy. In particular, the main personal capital of knowledge workers is knowledge, and many knowledge worker jobs require. The knowledgebased economies are an economic development.
The knowledge economy is a type of economy characterized by the duration and formation staging, the distinguishing feature of which is the predominant role of metamorphosis. Education, being the single most important factor in contributing to the transformation of a knowledgebased economy, took up in 2000 20. A knowledgebased economy is important for widening the scope of labour from producing goods on an assembly line to greater flexibility in. A knowledgebased economy is a type of modern economy that produces considerable share of output by utilization of innovation and knowledge.
The knowledge economy is a system of consumption and production that is based on intellectual capital. Achieving that multiplier effect of innovation is the goal of the uae and significant progress has been made in the establishing the underlying fundamentals for indigenous innovation as the country continues to evolve into a globally competitive, knowledgebased economy. Ive rarely had investments, but a comment at the economist says i may. Don tapscott 1996 asserts, more added value is created by brain than brawn. Higher education is one of the most important stages of the buildup towards a knowledgebased economy. The knowledge based economy is an expression coined to describe trends in advanced economies towards greater dependence on knowledge, information and high skill levels, and the increasing need for ready access to all of these by the business and public sectors. The oldest approach, with its origins dating back to the early 1960s, focuses on the rise of new science based industries and their role in social and economic change. The knowledge based economy by elena enache, carmen marin. The importance of the strategic management process in the knowledgebased economy stefan nedelea the bucharest academy of economic studies, romania email. Identifying best practices for the knowledge based economy is a focal point of oecd work in the field of science, technology and industry.
The major concerns for most emerging or developing nations particularly in africa have been the application and usability of knowledge based systems and technologies. We define the knowledge economy as production and services based on knowledge intensive activities that contribute to an accelerated pace of technical and scientific advance, as well as rapid. Introduction opening up the knowledge box figure 1 sets the stage for our discussion. This is shown by the rise in hightech industries, the growth of the service sector, rise in selfemployment and an increase in the number of patents. In the knowledge based information economy eliasson 1987a, 1990a, b, however, the state space is extremely large and complex, sufficiently large to preclude any form of overview from one point. Start studying shrm hr roles in knowledge based economy. The overall features of knowledge economy can be summed up as follows. This paper reports the result of a qualitative study of human resource management in the knowledge economy. In recent years an interesting claim has been widely discussed by various researchers and academics that there has been a striking growth of knowledge based economy.
Refers to how society and economies are changing their reliance from the labour and manufacturing of products or goods to an economy that is more reliant on the production and reengineering of information into knowledge. Academic institutions and companies engaging in research and development are important foundations of such a system. The role of education in knowledge economies in developing. Hence, society and the economy are being transformed from a physicalbased labour force to a knowledgebased one. I have raised ideas about this topic on projectsyndicate. The impact of knowledgebased economy on growth performance. The current paper is a conceptual and explorative exercise based on the analysis and comparison of relevant literature and representative studies underlining communication implications in real economical world. Within the uk, the growth of the knowledgebased services sector has increased employment by nearly two million workers between 1995 and 2005, an overall rise of 17%. To paul romer knowledge is the third factor of production and long term growth it is the basic form of capital and that economic growth is driven by its accumulation. The aim of this paper is to emphasize the importance of knowledge based economy, in this time. Models toward a knowledgebased economy and society 6 ii.
Human capital through the knowledge economy is an economic. Knowledge based economy assessment issue 5, october, 2012 intellectual resources, from the knowledge capital. It is also described as a type of modern economy in which competitiveness, novelty, and efficiency depends on creation of new knowledge and the enhancement of access to several knowledge sources. The importance of knowledgebased economy kbe in the xxi century is evident. Production and services based on knowledgeintensive activities that. The term knowledge economy was coined in the 1960s to describe a shift from traditional economies to ones where the production and use of knowledge are paramount. The purpose of the article is to clarify the role communication has in companies based on knowledge evolution and how authorities pointed and sustained its significance.
This report discusses trends in the knowledge based. Innovation to help omans transition to knowledgebased. This is a significant reorientation of economy consisting in gradual transfer from material consuming economy to economy based on information and. The kink of the curve signifies the onset of an important historical process, commonly called the industrial revolution. The knowledge economy is the use of knowledge to create goods and services. The late peter drucker apparently first used the phrase the knowledge economy in his 1969 book the age of discontinuity. Faculty of managementmarketing in economic affairs braila. Importance of knowledge management and knowledge economy. An economy characterized by the recognition of knowledge as a source of competitiveness. Human resource development in the knowledge based and.
The importance of the strategic management process in the. The broad label knowledge economy covers a wide array of activities and interpretations. Thus, this transition to the economy based on knowledge represents a comprehensive and profound process which generates major changes in the components of the economic activities. Knowledgebased economies and the institutional environment. The paper is devoted to the question of how important intangible assets ia are in todays knowledgebased economy. Distinctive features of knowledge economy explained. The role of research and development in building the uaes. These strategies help increase the sultanates ability to generate valuable economic assets in the field of. The shift that malaysia is making towards a knowledgebased economy has a direct implication on the education system. The role and importance of knowledge economy as a platform. In the article the reflection of knowledge on economy is analyzed. The main point is targeted to the analysis of characteristics of knowledge expression in economy and to the construction of structure of kbe expression.
The claim continues towards organisational level, where the concentration is given. The knowledge economy is about adding ideas to product and turning new ideas into new products. Last but not least important, kbe is driven by the demand for higher value. The oldest approach, with its origins dating back to the early 1960s, focuses on the rise of new sciencebased industries and their role in social and economic change. Identifying best practices for the knowledgebased economy is a focal point of oecd work in the field of science, technology and industry. Indeed it is an emerging society whose economic base is widely shaped by the processes of generation, dissemination and exploitation of knowledge. A knowledge economy is an economy in which the production of goods and services is based primarily upon knowledgeintensive activities. It may also be considered a knowledge driven economy, i. Knowledge economy emphasizes the importance of skills in a service. In particular, it refers to a high portion of skilled workers in the economy of a locality, country, or the world, and the idea that most jobs require specialized skills. A knowledgebased economy can be generated when the organization of knowledge is added as a third coordination mechanism at the level of the social system.
Knowledge is thus alienated from its origins as a human activity and organized at the supraindividual level habermas, 1968a and b. In knowledge economy knowledge is a public good, as this becomes object of wide use. The importance of communication in knowledge based economy. A knowledge economy is a term used to describe an economy of knowledge focused on the production and management of knowledge. It is considered a fundamental economic shift that is currently in progress based on the observation that a large number of jobs have shifted to professions that require extensive knowledge and the ability to create new knowledge. Economy with mechanisms leading to the use of knowledge to improve the competitiveness of enterprises. Some thinkers believe that the knowledge economy is the next stage of global economic development after an agricultural age based on land followed by an industrial age based on capital and labor, while others dismiss the term as jargon and buzzwords which attempt to relate in a meaningful way several ongoing trends such as globalization and. The matter of the paper develops knowledge based economy concept. The knowledge economy commonly makes up a large share of all economic.