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A knowledge economy is either economy of knowledge focused on the economy of the producing and management of knowledge, or a knowledge-based economy. In the second meaning, more frequently used, it is a phrase that refers to the use of knowledge to produce economic benefits. The phrase was popularised if not invented by Peter Drucker as the heading to chapter 12 in his book The Age of Discontinuity [1]. Personification of knowledge (Greek Επιστημη, Episteme) in Celsus Library in Ephesos, Turkey. ...
Economics (deriving from the Greek words οίκω [okos], house, and νÎμω [nemo], rules hence household management) is the social science that studies the allocation of scarce resources to satisfy unlimited wants. ...
Peter Ferdinand Drucker (November 19, 1909–November 11, 2005) was an Austrian author of management-related literature. ...
Various observers describe today's global economy as one in transition to a "knowledge economy", or an "information society". But the rules and practices that determined success in the industrial economy of the 20th century need rewriting in an interconnected world where resources such as know-how are more critical than other economic resources. These rules need to be rewritten at the levels of firms and industries in terms of knowledge management and at the level of public policy as knowledge policy or knowledge-related policy. An information society is a society in which the creation, distribution, diffusion, use, and manipulation of information is a significant economic, political, and cultural activity. ...
(19th century - 20th century - 21st century - more centuries) Decades: 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s As a means of recording the passage of time, the 20th century was that century which lasted from 1901–2000 in the sense of the Gregorian calendar (1900–1999...
A trade secret is a formula, practice, process, design, instrument, pattern, or compilation of information used by a business to obtain an advantage over competitors within the same industry or profession. ...
An aspect of knowledge that has been largely forgotten in knowledge economy thinking is wisdom. Wisdom invokes questions of judgement, ethics, experience and intuition, all of which are necessary for the best application of knowledge.
Here, there may be a need to differentiate with the Web Economy of Google, Skype and Ebay that seems to have created wealth based more on services dependent on mass interconnectivity rather than on knowledge-based skills. This article or section does not adequately cite its references or sources. ...
Google, Inc. ...
Skype (IPA pronunciation: , rhymes with type) is a proprietary peer-to-peer Internet telephony network founded by the entrepreneurs Niklas Zennström and Janus Friis, also founders of the file sharing application Kazaa. ...
eBay headquarters in San Jose eBay North First Street satellite office campus (home to PayPal) eBay Inc. ...
Services are: plural of service Tertiary sector of industry IRC services Web services the name of a first-class cricket team in India This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ...
Concepts
A key concept of this sector of economic activity is that knowledge and education can be treated as: - A business product, as educational and innovative intellectual products and services can be exported for a high value return.
- A productive asset
The initial foundation for the Knowledge Economy was first introduced in a book by Peter Drucker. In 1966 The Effective Executive, by Peter Drucker, described the difference between the Manual worker (page 2) and the knowledge worker. A manual worker works with his hands and produces "stuff". A knowledge worker (page 3) works with his head and produces ideas, knowledge, and information. Knowledge worker, a term coined by Peter Drucker in 1959, is one who works primarily with information or one who develops and uses knowledge in the workplace. ...
Driving forces Commentators suggest that at least three interlocking driving forces are changing the rules of business and national competitiveness: As a result, goods and services can be developed, bought, sold, and in many cases even delivered over electronic networks. The Microsoft building in Bangalore, the information technology capital of India A KFC franchise in Kuwait. ...
The ASCII codes for the word Wikipedia represented in binary, the numeral system most commonly used for encoding computer information. ...
Personification of knowledge (Greek Επιστημη, Episteme) in Celsus Library in Ephesos, Turkey. ...
A trade secret is a formula, practice, process, design, instrument, pattern, or compilation of information used by a business to obtain an advantage over competitors within the same industry or profession. ...
This article or section is in need of attention from an expert on the subject. ...
Connectivity is the property of a device such as a PC, peripheral, PDA, mobile phone, robot, home appliance, or car that enables it to be connected, generally to a PC or another device without the need of a PC - autonomously. ...
Global village is a term coined by Wyndham Lewis in his book America and Cosmic Man (1948). ...
As concerns the applications of any new technology, it depends how it meets economic demand. It can stay dormant or get a commercial breakthrough (see diffusion of innovation). The study of the diffusion of innovation is the study of how, why, and at what rate new ideas spread through cultures. ...
Characteristics It can be argued that the knowledge economy differs from the traditional economy in several key respects: - The economics is not of scarcity, but rather of abundance. Unlike most resources that deplete when used, information and knowledge can be shared, and actually grow through application.
- The effect of location is either
- diminished, in some economic activities: using appropriate technology and methods, virtual marketplaces and virtual organizations that offer benefits of speed, agility, round the clock operation and global reach can be created .
- or, on the contrary, reinforced in some other economic fields, by the creation of business clusters around centers of knowledge, such as universities and research centers having reached world-wide excellence.
- Laws, barriers and taxes are difficult to apply on solely a national basis. Knowledge and information "leak" to where demand is highest and the barriers are lowest.
- Knowledge enhanced products or services can command price premiums over comparable products with low embedded knowledge or knowledge intensity.
- Pricing and value depends heavily on context. Thus the same information or knowledge can have vastly different value to different people, or even to the same person at different times.
- Knowledge when locked into systems or processes has higher inherent value than when it can "walk out of the door" in people's heads.
- Human capital -- competencies -- are a key component of value in a knowledge-based company, yet few companies report competency levels in annual reports. In contrast, downsizing is often seen as a positive "cost cutting" measure.
- Communication is increasingly being seen as fundamental to knowledge flows. Social structures, cultural context and other factors influencing social relations are therefore of fundamental importance to knowledge economies.
These characteristics require new ideas and approaches from policy makers, managers and knowledge workers. A marketplace is the space, actual or metaphorical, in which a market operates. ...
A Virtual Organization is an organization existing as a corporate, not-for-profit, educational, or otherwise productive entity that does not have a central geographical location and exists solely through telecommunication tools. ...
It has been suggested that Cluster effect be merged into this article or section. ...
Criticism:
- Much of the above theorising about the advent of a fundamentally new era in which economic activity is increasingly 'abstract', ie. disconnected from land, labour, and physical capital (machines and industrial infrastructure) is associated with the 'business management' literature of the 'new economy' NASDAQ bubble, which collapsed in 2001. This literature is known more for its hyperbole and faddishness than for its academic integrity.
Similar concepts Other terms for the concept include "Knowledge society" and "Knowledge wave", as in catching or riding the "knowledge wave" in a similar manner that a surfer catches and rides a surf wave. This article or section is in need of attention from an expert on the subject. ...
For other uses, see Surfing (disambiguation). ...
External links
Wikibooks
References - ^ Peter Drucker, (1969). The Age of Discontinuity; Guidelines to Our changing Society. Harper and Row, New York. ISBN 0-465-08984-4
Arthur, W. B. (1996). Increasing Returns and the New World of Business. Harvard Business Review(July/August), 100-109. Peter Ferdinand Drucker (November 19, 1909–November 11, 2005) was an Austrian author of management-related literature. ...
Harper & Row is an imprint of HarperCollins. ...
NY redirects here. ...
Bell, D. (1974). The Coming of Post-Industrial Society: A Venture in Social Forecasting. London: Heinemann.
Drucker, P. (1969). The Age of Discontinuity; Guidelines to Our changing Society. New York: Harper and Row.
Drucker, P. (1993). Post-Capitalist Society. Oxford: Butterworth Heinemann.
Machlup, F. (1962). The Production and Distribution of Knowledge in the United States. Princeton: Princeton University Press.
Romer, P. M. (1986). Increasing Returns and Long-Run Growth. Journal of Political Economy, 94(5), 1002-1037.
Rooney, D., Hearn, G., Mandeville, T., & Joseph, R. (2003). Public Policy in Knowledge-Based Economies: Foundations and Frameworks. Cheltenham: Edward Elgar.
Rooney, D., Hearn, G., & Ninan, A. (2005). Handbook on the Knowledge Economy. Cheltenham: Edward Elgar.
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