Knowledge Economy

The knowledge economy is one of the sectors of the economy that depends on the ease of access to information and its availability in quantity and quality for growth and prosperity instead of using the means of production.[1] It is a system that relies on intellectual capital for consumption and production.[2] and use cognitive activities rather than physical input,[3] With it, labor costs, resource scarcity, and other traditional economic concepts become less relevant over time.[4]

The purpose of the knowledge economy

The global economy in the information age has tended to apply the knowledge economy, because it provides a noticeable improvement in economic practices in the countries of the world. Learning and knowledge (human capital), which is one of the most important productive sources that bring profits and benefits to individuals, companies and the economy as a whole.[2]

characteristics of the knowledge economy

The most important characteristics of the knowledge economy:[3]

  • Adoption of knowledge and information as a primary driver of the production process.
  • Invest in and grow high-tech.
  • Prosperity in the service sector such as education, healthcare, and telecommunications.
  • Knowledge is an unlimited resource, and it can be shared to enhance comprehensive knowledge, without fear of losing it.
  • The increase in the demand for skilled workers with university degrees.
  • High importance of tacit knowledge.
  • The knowledge economy is linked to the process of globalization and the dissemination of knowledge at the global level.
  • A significant change in the labor market as a result of the work of the knowledge economy with the high-tech industry, which increases the scope for automation of production processes.

The importance of the knowledge economy

The importance of the knowledge economy lies in raising the efficiency of companies’ work and innovation in them through:[3]

  • Opening up the field of innovation and creativity in products.
  • Paying great attention to the role of human capital, as companies are interested in attracting employment according to the new economic situation.
  • Increasing the distribution of knowledge, and benefiting from new practices at work.
  • Providing new sources of economic growth and a higher level of production.

the reviewer

  1. ↑ “knowledge economy”, en.oxforddictionaries.com, Retrieved 2019-5-25. Edited.
  2. ^ AB Will KENTON (2019-4-14), “Knowledge Economy”, www.investopedia.com, Retrieved 5-25-2019. Edited.
  3. ^ a b c Tejvan Pettinger (2017-6-26), “The knowledge economy”, www.economicshelp.org, Retrieved 2019-5-25. Edited.
  4. ↑ “Knowledge Economy”, www.businessdictionary.com, Retrieved 2019-5-25. Edited.

What is the knowledge economy?

writing – on the date : – Last updated: 2022-06-23 17:33:01