There are many mis-perceptions of what the Knowledge Economy is despite the phrase tends to be used interchangeably through all walks of life that refer to economics or productivity.
Two phrases, Knowledge Economy and Knowledge Based Economy are a key to the confusion that arises around the new forms of economic productivity. The difference is that in a knowledge economy, knowledge is a product whereas in a knowledge-based economy, knowledge is a tool. Even todate, this difference is not well distinguished in the subject matter literature. They both are strongly interdisciplinary, involving economists, computer scientists, software engineers, mathematicians, chemists, physicists, as well as cognitivists, psychologists and sociologists.
When industry leaders use these terms without understanding their emphasis and how they evolve the economic environments of productivity, they tend to lead the whole economic system towards confusion. The basic contributor to this lacking is the deficit of experts in the region that would have originally been tasked to suggest and layout the knowledge policy frameworks. There are significant initiatives in our neighboring countries where knowledge commissions were created to carryout this prime task of defining the knowledge economy within their country’s context and resources.
Just to make things simple, in order to evolve a Knowledge Economy, the prerequisites are that all the rules including practices that were determinants of success in the previous industrial economy have to be rewritten in an interconnected, globalized economy where knowledge resources such as know-how and expertise are as critical as other economic resources. Rewriting these rules has to take place significantly at the levels of firms and industries in terms of knowledge management as well as at the level of public policy in the form of knowledge policy or knowledge-related policy.
Evolving the Knowledge Economy:
I will use multiple sources including the Wikipedia to define the knowledge economy so atleast our readers understand where they are confused by the industry. The Knowledge Economy evolves with the rise in knowledge intensity of economic activities, and the increasing globalisation of economic affairs. The rise in knowledge intensity is being driven by the combined forces of the IT revolution and the increasing pace of technological change. Globalisation is being driven by national and international deregulation, and by the IT related communications revolution. The evolution is driven by the forces of change in the rules of business and national competitiveness.
By globalization we refer to markets and products being global. By knowledge intensity, efficient production relies on information and know-how; over 70 per cent of workers- in developed economies are information workers; many factory workers use their heads more than their hands. Then, new media comes into play that increases the production and distribution of knowledge which in turn, results in collective intelligence. Existing knowledge becomes much easier to access as a result of networked databases which promote online interaction between users and producers. Computer networking and Connectivity developments such as the Internet bring the “global village” ever nearer. As a result, goods and services can be developed, bought, sold, and in many cases even delivered over electronic networks. As regards the applications of any new technology, this depends on how it meets economic demand. It can remain dormant or make a commercial breakthrough.
continued… in upcoming part-3
Its a very long topic,Pakistan will stay the same as it is, I bet. If Sharia will come it will get much worse. The reason why we failed miserably to produce any knowledge product in 60 years has to do more with socialogy than lack of PHDs.Whole muslim world failed miserbaly in economics, innovation and knowledge.We somehow decided RnD and research is the answer to everything, so start producing hoards of PHDs.Whole muslim world is filled with lots of PHDs. Result? Google, microsoft, Ford motor car, electric machine, oil business, phones, web, cold drinks, planes and airline business etc were not only because of PHDs. the problem is not reasech, it is something else.
In Pakistan where people are living in 18th century mindset, where people drive their worth in terms of how much they can influence other people (and foolishly name it power) rather than productivity, achievement and ingenuinity. We are highly inflexible and unimaginative.We are third grade people and thrid grade region. Thats the reason we are thirld world country.
IS there any country in world where there is a ban on new jobs for almost a decade? I dont know if it is true but my friend told me, that there is a ban on Government jobs for almost a decade. At rate of our population growth, it is totally INSANE
People who chose idiot Juhlaz like zaradri and mians as their representatives, deserve nothing.