The concept of knowledge economics

Knowledge economics is defined by the term (Knowledge economy), which is a type of modern economic sector, which depends on the application of personal or technological skills in financial or non-financial transactions within the economy sector, and knowledge economics is defined as the use of natural or artificial intelligence that depends on devices The computer determines the nature of the products and services that will be offered in the markets, and then determines the value of capital, resources, and manpower that contribute to the application of the production process. International statistics indicate that knowledge economies constitute 7% of the world’s domestic economic total. The rate is annually with an added value of about 10% of the total general economic value.

The emergence of knowledge economics

The emergence of knowledge economics dates back to the twentieth century. The concept of knowledge economics was used for the first time in 1969 in a book by the American administrator and philosopher Peter Drucker, which was based on the application of a set of studies on the agricultural economics sector and the labor economy sector. These studies helped him formulate the first ideas about The economics of knowledge, and its role in helping to support production in various economic sectors.

At the beginning of the year 2000 AD, knowledge economics had an important role in supporting economic decisions, especially in industrial establishments, which began to depend on the presence of a department for computers to provide support services to employees, whether in the quality of products or in preparing financial and accounting accounts easily, or in assessing the nature of inventory, or In determining the percentage of profits and losses resulting from the business, and over time a set of specialized programs were designed to provide support to knowledge economies, which led to the remarkable development of this economic sector.

Characteristics of knowledge economics

  • It depends on economic innovation in providing a set of materials and services that contribute to supporting commercial ties between companies working in one field of work.
  • It seeks to keep pace with sustainable development in various types of local economies, which helps provide most of the needs of individuals.
  • It helps to develop a labor plan related to the provision of skilled manpower, which is able to benefit from knowledge in order to develop economic production.
  • It is keen to build an infrastructure that depends directly on benefiting from the role of information technology in supporting knowledge for local needs.
  • It contributes to providing incentives that support local production and competitiveness among companies of all kinds by relying on the application of knowledge questionnaires about the nature of companies in the market and their impact on individuals in society.

Influences on the economics of knowledge

  • Economic globalization: which led to the transformation of local economies into global economies, which led to linking commercial markets together.
  • Liberalizing economic policies: which contributed to facilitating many commercial transactions that needed a long time, especially within the foreign trade sector.
  • Using the Internet: which helped transform the ideas of knowledge economies into a virtual reality that is easy to deal with through the computer.

The concept of knowledge economics

writing – on the date : – Last updated: 2022-06-18 15:03:01