What is the Global Knowledge Economy?

Question

As an essay I need to answer the question 'How does the school, college and university system in the UK prepare learners for employment in the global knowledge economy?'

However, I have no idea what the GKE even consist of or what they do. Can anyone shed any light on this? Thanks

Answer 1

The application of knowledge is now recognized to be one of the key sources of growth in the global economy. The term Global Knowledge Economy (GKE) has been coined to reflect this increased importance of knowledge. A GKE is one where organizations and people acquire, create, disseminate, and use knowledge more effectively for greater economic and social development.

This 'knowledge revolution' manifests itself in many different ways: there are closer links between science and technology; innovation is more important for economic growth and competitiveness; there is increased importance of education and life-long learning; and more investment is undertaken in intangibles (R&D, software and education) which is even greater than investments in fixed capital. And of course there is the internet, technology, and communication explosion which brings worldwide interdependency and connectivity.

Increased importance of knowledge provides great potential for countries to strengthen their economic and social development by providing more efficient ways of producing goods and services and delivering them more effectively and at lower costs to a greater number of people. However, it also raises the danger of a growing 'knowledge divide' [rather than just a 'digital divide'] between advanced countries, who are generating most of this knowledge, and developing countries, many of which are failing to tap the vast and growing stock of knowledge because of their limited awareness, poor economic incentive regimes, and weak institutions. Combined with trade policy liberalization, the knowledge revolution is leading to greater globalization and increased international competition, which is eroding the natural resource and low labor cost advantage of most developing countries.

To capitalize on the knowledge revolution to improve their competitiveness and welfare, developing countries need to build on their strengths and carefully plan appropriate investments in human capital, effective institutions, relevant technologies, and innovative and competitive enterprises.

The World Bank's Framework for a Global Knowledge-based Economy ("K4D program") is based on the following framework consisting of four pillars to help countries articulate strategies for their transition to a knowledge economy:

    * An economic and institutional regime that provides incentives for the efficient use of existing and new knowledge and the flourishing of entrepreneurship.

    * An educated and skilled population that can create, share, and use knowledge well.

    * An efficient innovation system of firms, research centers, universities, think tanks, consultants, and other organizations that can tap into the growing stock of global knowledge, assimilate and adapt it to local needs, and create new technology.

    * Information and Communication Technologies (ICT) that can facilitate the effective communication, dissemination, and processing of information.