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Topics: Economy, Knowledge economy, Employment Pages: 36 (2842 words) Published: April 21, 2014
Lecture 8 :
 Knowledge-based economy
 Talent Corp’s programs

Lecture 8 :
Knowledge-based economy
Knowledge-Based Economy
 Definition
 Phases of development
 Rationale and recommendations.

Multimedia Super Corridor (MSC)

 An overview of the Multimedia Super Corridor (MSC)
 The development phases, framework, policies and flagship applications.

By: SW Choon

What is Knowledge Economy?
“an economy in which knowledge creation and innovation
play an ever increasing role in generating and sustaining
growth”

“an economy which is directly based on the production,
distribution and use of knowledge and information (OECD,
1996).
“an economy in which the generation and exploitation of
knowledge is the predominant element that drives the
creation of wealth” (United Kingdom Department of Trade
and Industry, 1998).

By: SW Choon

Why KE?
 Knowledge as a source of growth

 Information and knowledge put in good use

 Innovate, improve productivity

 Lack of resources

 declining productivity.

 Business success driven by knowledge and IT
 adaptable technology to increase efficiency.
 E-commerce
 No boundaries, i.e. world wide market

By: SW Choon

Development of an economy

The world has so far experienced three eras.

They are:
1.
2.
3.
4.

By: SW Choon

Primitive era
Agrarian era
Industrial era
Currently we are experiencing knowledge era.

Development of an economy
i)

Primitive era




Life had been uncertain and mostly relied on
natural environment.



By: SW Choon

Hunting of animals and gathering of fruits and
roots from the forest.

During primitive era, all of the activities were
accomplished primarily by strength and stamina
while the application of knowledge was extremely
limited.

Development of an economy
ii) Agrarian era

It is believed that the first agricultural activities
commenced almost 10,000 years ago
probably in the Middle East. Later on, it
spread to the rest of the world.
Labour and land were the main inputs.

By: SW Choon

Development of an economy
iii) Industrial era



Industrial era commenced immediately after
the agrarian era.



Historically it is observed that industrial
revolution began in England in the
eighteenth century and later on, it spread to
other European countries.
Energy and capital were the main inputs.

By: SW Choon

Development of an economy
iv) Knowledge Era (New Economy)





By: SW Choon

Since the beginning of 1990s, there has
been a dramatic advancement in
information and communication technology
(ICT) which allowed the world to access to
knowledge through superhighway.
Knowledge, human capital and technology
are the main inputs.

Key characteristics of a K-economy









By: SW Choon

Constantly innovating
 continuous innovating and developing creative work
practices
Communication and services are main activities
Expansion of knowledge industry which includes ICT,
massive diffusion of personal computers, formal and
informal educational and research centre.
Flexibility and responsiveness of various economic
activities
Ethical values- knowledge is used to improve values.

Knowledge and pre-knowledge economy
Pre-knowledge economy
The major portion of the
economy comes from the
visible sector namely primary
and low tech manufacturing
sector.

The economy is virtually
invisible as the largest portion
of its output comes from
knowledge based service
sector.

Driving for achieving tangible
assets.

Thrust for acquiring intangible
assets.

Factors of production are
mostly tangible elements
such as land, labour and
capital.

By: SW Choon

Knowledge economy

Factors of production are
mostly intangibles by nature.
For example: creativity, skills,
and knowledge etc. In other
words, Invention and
innovation are the driving
forces.

Challenges to build a knowledge...
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