Knowledge Revolution

Abstract: The economics of knowledge is a rapidly emerging subdiscipline of economics that has never before been given the comprehensive and cohesive treatment found in this book. Dominique Foray analyzes the deep conceptual and structural transformation of our economic activities that has led to a gradual shift to knowledge-intensive activities. This transformation is the result of the collision of a longstanding trend -- the expansion of knowledge-based investments and activities -- with a technological revolution that radically altered the production and transmission of knowledge and information. The book focuses on the dual nature of the economics of knowledge: its emergence as a discipline (which Foray calls "the economics of knowledge") and the historical development of a particular period in the growth and organization of economic activities ("the knowledge-based economy").The book, which alternates between analysis of the economic transformation and examination of the tools and concepts of the discipline, begins by discussing "knowledge" as an economic good and the historical development of the knowledge-based economies. It then develops a conceptual framework for considering the issues raised. Topics considered in the remaining chapters include forms of knowledge production, codification and infusion, incentives and institutions for the efficient production of knowledge (including discussions of private markets and "open" sources), and knowledge management as a new organizational capability. Finally, the book addresses policy concerns suggested by the uneven development of knowledge across different sectors and by the need to find ways of reclaiming the public dimension of knowledge from an essentially privatized knowledge revolution.

Abstract: This paper highlights the importance of knowledge for long-term economic growth. It presents the concept of the knowledge economy, an economy where knowledge is the main engine of economic growth. The paper also introduces the knowledge economy framework, which asserts that sustained investments in education, innovation, information and communication technologies, and a conducive economic and institutional environment will lead to increases in the use and creation of knowledge in economic production, and consequently result in sustained economic growth. In order to facilitate countries trying to make the transition to the knowledge economy, the Knowledge Assessment Methodology (KAM) was developed. It is designed to provide a basic assessment of countries' readiness for the knowledge economy, and identifies sectors or specific areas where policymakers may need to focus more attention or future investments. The KAM is currently being widely used both internally and externally to the World Bank, and frequently facilitates engagements and policy discussions with government officials from client countries.

Abstract: This book is designed primarily to help readers broaden their knowledge of global issues, gain insight into their country's situation in a global context, and understand the problems of sustaianble development--both national and global. Because development is a comprehensive process involving economic as well as social and environmental changes, this book takes an interdisciplinary approach. It attempts to describe and explain the complex relationships among various aspects of development, including population growth, economic growth, improvements in education and health, urbanization, and globalization.

Abstract: While China made impressive achievements in economic growth, and poverty reduction over the last quarter century, it now faces daunting, internal challenges, such as ensuring employment to millions over the coming decade, continuing to maintain high growth, increasing its international competitiveness, and reducing income, and regional inequalities. Compounding these challenges is the new knowledge, and information revolution. Thus, to prosper in this new era, China must welcome the knowledge revolution, and make effective use of knowledge in its agricultural, and industrial sectors, and especially, in developing its service industry. Additionally, it also needs to manage the transition to an environmentally, sustainable economy that better utilizes its relatively, limited natural resources. This book outlines those main challenges, and the importance of shifting from a factor-based to a knowledge-based strategy. It presents the long-term strategy for China, that integrates key knowledge-related policy components, improving relevant economic incentives, and institutions, including education, and training upgrading, to build an information structure that strengthens innovations, and research. Concrete steps are suggested for implementing this strategy, and, the book recommends a further withdrawal by Government, from hands-on management of the economy, to rather take the role of an architect for appropriate institutions, and provider of incentives to establish a new socialist, market economy.