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Knowledge Economy

Knowledge based Economy

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 move from hunter-gathering to the age of farming and the dawn of the Industrial Revolution 12,000 years later mark seminal transitions in human history, lifestyle and wellbeing. Now in the digital age, our civilisation may be in the midst of another equally great transformation. The age of the knowledge economy. Read more

Knowledge has been the driver of productivity and economic growth, leading to a new focus on the role of information, technology and learning in economic performance. The term “knowledge-based economy” stems from this fuller recognition of the place of knowledge and technology in modern economies. It is coined in the 1960 to describe a shift from traditional economies to ones where the production and use of knowledge are paramount. “Knowledge-based economies” – economies which are directly based on the production, distribution and use of knowledge and information.

Knowledge has long been an important factor in economic growth, economists have been exploring ways to incorporate more directly knowledge and technology in their theories and models. “New growth theory” reflects the attempt to understand the role of knowledge and technology in driving productivity and economic growth. Investments in research and development, education and training and new managerial work structures are key.

The term “knowledge-based economy” results from a fuller recognition of the role of knowledge and technology in economic growth. Knowledge, as embodied in human beings (as “human capital”) and in technology, has always been central to economic development. But only over the last decades has its relative importance been recognized, just as that importance is growing.

CAT4A Objective:

Identifying “best practices” for the knowledge-based economy is a focal point of Cat4A work in the field of science, technology and industry. Study and analyze the trends in the knowledge-based economy and publicize the role of the science system and the development of knowledge-based indicators and statistics, and encourage decision makers to provide the environment necessary that promote the knowledge based industry.

The use of knowledge, skilled labour availability and good education systems - Knowledge economy learning is shared learning, continuous learning and lifelong learning. Rapidly changing knowledge economies depend and thrive on effective orientations to lifelong learning.

ICT infrastructure and access

A vibrant innovation landscape that includes academia, the private sector and civil society.

According to the World Bank, knowledge economies are defined by four pillars. These are: institutional structures that provide incentives for entrepreneurship and the use of knowledge, skilled labour availability and good education systems, ICT infrastructure and access, and, finally, a vibrant innovation landscape that includes academia, the private sector and civil society.

Modern economies are increasingly based on knowledge and, more generally, on the intangible assets that promote the economic development. Knowledge-based economies are founded on increasing specialization, research, innovation and learning. One of the main features of knowledge-based economies is its reliance in the new information technologies,

Institutional structures that provide incentives for entrepreneurship - The role of institutions is important, because it is by the interactions between actors and institutions and, therefore, through the relationships that exist between the production system, public authorities, universities and the education sector as a whole. To promote a knowledge-based economy not only is the existence of institutions are required, but it is equally necessary that these institutions are strong and credible that give stability . The creation of credible institutions becomes a precondition, since the development of a knowledge-based community is particularly based on the institutional framework and human capital resources.

The 4 Pilars of Knowldege Based Economy

Advancing the Knowldege Based Economy for Africa

Transform Developing Economy

The growing access to digital technologies could fundamentally transform developing economies.

What is Knwoledge economy

Local Capacity Building

How to build local human and technical capacity.

Maping the Road

A benchmarking tool developed by the World Bank Institute — known as the knowledge assessment methodology (KAM) — can be used to assess these countries’ progress and identify the challenges that they must face in order to succeed in the global knowledge economy.

References

[1}Ian Brinkley, Defining The knowldege Economy, Knowledge economy programme report

[2] World Bank’s Knowledge economic index (World Bank, 2012)

[3] Mark Graham The knowledge based economy and digital divisions of labour (Social Science Research Network, 1 January 2014)

[4] Connecting Africa: An assessment of progress towards the Connect Africa Summit Goals (African Development Bank, May 2013)

[5] Joanne Roberts The global knowledge economy in question (Critical Perspectives on International Business, 2009)

- See more at: http://www.scidev.net/global/knowledge-economy/feature/knowledge-economy-ict-developing-nations.html#sthash.smhFLxy3.dpuf

Unfortunately the path to a knowledge economy often remains elusive for Africa!