the knowledge economy
The knowledge economy is an economy based on the manufacture, circulation and evaluation of knowledge; Where the importance of labor costs is less, and it does not use traditional concepts of economics, such as scarcity of resources, and the knowledge economy is defined as a type of economy whose growth depends on the quality and quantity of information available, and the ability to access it. Other definitions of the knowledge economy is a type of economic system, in which production and consumption depend on the use of intellectual capital, and the knowledge economy often obtains a large share within the economic activities of countries with advanced economic growth.
History of the knowledge economy
The first appearance of the term knowledge economy dates back to the fifties of the twentieth century AD; It began to spread when the industry sector witnessed a development at the expense of the agricultural sector; Which led to the emergence of a new economic sector in developed countries; In order to be the nucleus of a new economic system, it was called the post-industrial stage. The modern economic sectors were built on the idea of knowledge, communications, and information technology, which contributed to a great development of human activity and thought in all fields; As oil and gold no longer dominate the traditional industry, the possibility of producing information programs has become one of the priorities of modern economic sectors.
Capital, labor, and land are the main factors of the productive process in ancient economies, while this is different for the modern economy (knowledge economy); Creativity, information, intelligence, and technical knowledge are one of the basic components of production, and according to United Nations estimates, the knowledge economy controls 7% of the world's GDP, and this economy is growing at an annual rate ranging between 10% - 50% approximately of the gross product of the member states of the European Union; Because of the interest of these countries in the use of communications and information technology.
Characteristics of the knowledge economy
The knowledge economy is characterized by a number of characteristics, namely:
Knowledge represents the capital of this economy, and it is characterized by not being monopolized, nor diminished, nor exhausted.
Knowledge is concerned with globalization, adapting to customer desires, and focusing on providing services to consumers.
Knowledge depends on the use of a productive workforce.
Communication and information are the main tool for achieving knowledge effectiveness.
Knowledge helps to raise the per capita share of the national gross product.
Knowledge provides an environment that stimulates talent and creativity.
The importance of the knowledge economy
The importance of the knowledge economy arose with the use of information technologies instead of resources and capital; Which contributed to knowledge becoming one of the most important factors in transforming developing countries into developed and modern countries, and the impact of this thing was reflected on international trade, as investment in technology, creativity, and development constituted a motive to support economic growth, and the following is a set of the most important points that constitute the importance of the knowledge economy:
Knowledge is classified as scientific, and is the basis used to produce and increase wealth.
Knowledge contributes to increasing productivity, improving performance, reducing production costs, and ensuring the development of its quality; Through the use of advanced methods and technical means of the knowledge economy.
Knowledge helps support the national income; By establishing projects and following up their financial returns, and contributing to generating individual income, which is related to direct or indirect knowledge activities.
Knowledge contributes to job opportunities; Specifically within the professional fields that use advanced technological techniques within the knowledge economy, and the available job opportunities are characterized by being diverse, increasing, and wide.
Share knowledge to modernize and develop economic activities; Which supports its growth to a large extent, and this leads to the continuation of the rapid development of the economy.
Knowledge contributes to providing the necessary foundations to support the expansion of investment; Especially in the fields of practical and scientific knowledge; Which leads to building knowledge capital to generate knowledge production.
Knowledge reduces the use of natural resources; By relying on knowledge resources, and developing existing ones, this leads to ensuring the continued development and growth of economic activities without being affected by determinants that limit this, such as scarcity.
Knowledge contributes to changing the structure of the economy; It leads to increased interest in direct and indirect knowledge production, enhances investment in knowledge capital, and supports exports of knowledge products.
Knowledge Economy Requirements
The knowledge economy has a set of main requirements; In order to ensure its continuity and development, the following is information on the most important of these requirements:
Providing a communications and information technology infrastructure; In order to contribute to building an information society.
Developing the laws used to suit the knowledge economy.
establishing and developing human capital; By providing countries with a conducive climate for knowledge to become the most important productive element.
Awareness of diversified enterprises and investors of the importance of the knowledge economy.
Providing imported knowledge, and searching for knowledge that is not available.
Ensuring the building of an effective system of technology and science.
Supporting the spread of a social culture that encourages innovation and creativity, and supports research and development; By providing an interactive environment that encourages people to produce knowledge.
Knowledge Economy Indicators
There is a set of indicators related to the knowledge economy, and they are used to indicate that it is the pattern used within the economy; Which contributes to the application of a set of comparisons between countries; In order to determine the level of its economic development, the following is a set of the most important indicators used to measure knowledge:
The percentage of knowledge within the prices of services and goods.
The rate of knowledge trade within each country's trade balance.
Indicators of society's orientation towards information, such as infrastructure rates, including: the Internet, telephones, and digital content.
Number of intellectual property rights and patents.
Number of years of training and study related to the individual's age.
The rate of expenditure of GDP on development and research.