The Importance Of Knowledge Economy In The Business World

What is Knowledge Economy? Knowledge economy is referred as the use of various knowledge and skills to create various valuables, either tangible or in tangible. Since economy refers to concepts like consumption, production, demand and supply, etc., in the same way knowledge economy refers to the use of these same terms with respect to knowledge, or better termed in this case as intellectual capacity being used as capital. Governments all over the world want their countries to have high-skill economies, and they realize that the first step towards this goal is to have a well-educated employee. In a knowledge economy the major asset of a person is their intellectual capacity. Due to the growing impact of knowledge economy on the overall economy,

During the 1990s, a lot of organizations started focusing and investing their resources more on the usage of knowledge resources. For example, in the year 1995, UK’s export of knowledge based services was 27.3 billion GBP, but the same has increased to 75.6 billion GBP by the year 2005, which is almost thrice of the value in 1995. Between the year 1994 and 2002, a lot of countries also increased their investment in knowledge. Countries like United States, Sweden, Japan and Canada, which are high investment economies showed an increase in investment in knowledge by 1.2%, 1.7%, 1.1% and 0.2% respectively, whereas, other economies also showed an increase in the investment, though not to the extent of the high investment economies, but they still showed an increase in the knowledge investment. Reports suggest that 30% of EU’s workforce will be employed directly for production and use of knowledge in various industrial sectors and the emerging economies will need even a greater percentage of knowledge based people in their

In today’s corporate world, almost everything is connected to the IT world. Although, it makes performing activities and managing things much easier and faster, in order to use these new technological tools, people who have knowledge of using these tools are also required, and also people who have the knowledge to make these tools are required. Both are completely different and both require usage of intellectual capabilities, and thus the knowledge part comes in over here. Another important part of knowledge related work is analytics. Analytical work has completely changed the way of business planning and forecasting. It not only changed the way an organization plans its next move but actually created various new types of job opportunities and completely changed the structure of organizations as well as the requirement of the type of people in the hierarchy of the organizations, and thus completely changed the way how and organization used to function.

Implication for education

This lead to prepare worker for long run learning and new models of education and training. Lifelong learning emphasis the framework for the long run cycle, which includes informal, formal, Nonformal education and training

• Formal