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    Knowledge Economy

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    Aymun Iqbal Quraishi
    The document discusses the knowledge economy, which is an economic system based on intellectual capital rather than physical assets or natural resources. It relies on scientific research and innovation to drive economic activity. Key aspects of the knowledge economy include commercialization of academic research, the importance of intellectual property, and the global shift toward knowledge-based factors of production in the Information Age. Developed countries tend to have service-based economies that are more knowledge-focused, while developing countries' economies rely relatively more on manufacturing and agriculture.

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    Knowledge Economy

    Uploaded by

    Aymun Iqbal Quraishi
    26 views2 pages
    The document discusses the knowledge economy, which is an economic system based on intellectual capital rather than physical assets or natural resources. It relies on scientific research and innovation to drive economic activity. Key aspects of the knowledge economy include commercialization of academic research, the importance of intellectual property, and the global shift toward knowledge-based factors of production in the Information Age. Developed countries tend to have service-based economies that are more knowledge-focused, while developing countries' economies rely relatively more on manufacturing and agriculture.

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    The document discusses the knowledge economy, which is an economic system based on intellectual capital rather than physical assets or natural resources. It relies on scientific research and innovation to drive economic activity. Key aspects of the knowledge economy include commercialization of academic research, the importance of intellectual property, and the global shift toward knowledge-based factors of production in the Information Age. Developed countries tend to have service-based economies that are more knowledge-focused, while developing countries' economies rely relatively more on manufacturing and agriculture.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    26 views2 pages

    Knowledge Economy

    Uploaded by

    Aymun Iqbal Quraishi
    The document discusses the knowledge economy, which is an economic system based on intellectual capital rather than physical assets or natural resources. It relies on scientific research and innovation to drive economic activity. Key aspects of the knowledge economy include commercialization of academic research, the importance of intellectual property, and the global shift toward knowledge-based factors of production in the Information Age. Developed countries tend to have service-based economies that are more knowledge-focused, while developing countries' economies rely relatively more on manufacturing and agriculture.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Knowledge Economy

    What Is the Knowledge Economy?


    The knowledge economy is a system of consumption and production that is based on intellectual capital.
    In particular, it refers to the ability to capitalize on scientific discoveries and basic and applied research.
    This has come to represent a large component of all economic activity in most developed countries. In a
    knowledge economy, a significant component of value may thus consist of intangible assets such as the
    value of its workers' knowledge or intellectual property.

    KEY TAKEAWAYS

     The knowledge economy describes the contemporary commercialization of science and academic
    scholarship.
     In the knowledge economy, innovation based on research is commoditized via patents and other
    forms of intellectual property.
     In the Information Age, the global economy has moved further toward the knowledge economy.
    The Knowledge Economy Explained
    Less developed countries tend to have agriculture and manufacturing-based economies. A developing
    country has a manufacturing and service-based economy, and developed countries tend to have service-
    based economies.

    Most countries' economies are composed of each of these three major categories of economic activity, but
    in differing proportions relative to the wealth of that country. Examples of knowledge economy activities
    include research, technical support, and consulting.

     The Bayh-Dole Act of 1980 was a major turning point in the treatment of intellectual property in the U.S.
    because it allowed universities to retain title to inventions or discoveries made with federal R&D funding
    and to negotiate exclusive licenses.1
    In the Information Age, the global economy has moved toward the knowledge economy, bringing with it
    the best practices from each country's economy. Also, knowledge-based factors create an interconnected
    and global economy where sources of knowledge, such as human expertise and trade secrets, are crucial
    factors in economic growth and are considered important economic resources. However, it is important to
    note that generally accepted accounting principles (GAAP) do not allow companies to include these
    assets on their balance sheets.

    The modern commercialization of academic research and basic science has its roots with governments
    seeking military advantage.
    Knowledge Economy and Human Capital
    The knowledge economy addresses how education and knowledge—that is, "human capital," can serve as
    a productive asset or business product to be sold and exported to yield profits for individuals, businesses,
    and the economy. This component of the economy relies greatly on intellectual capabilities instead of
    natural resources or physical contributions. In the knowledge economy, products, and services that are
    based on intellectual expertise advance technical and scientific fields, encouraging innovation in the
    economy as a whole.

    The World Bank defines knowledge economies according to four pillars:

    1. Institutional structures that provide incentives for entrepreneurship and the use of knowledge
    2. Availability of skilled labor and a good education system
    3. Access to information and communication technology (ICT) infrastructures
    4. A vibrant innovation landscape that includes academia, the private sector, and civil society 2
    Real-World Example of a Knowledge Economy
    Academic institutions, companies engaging in research and development (R&D), programmers
    developing new software and search engines for data, and health workers using digital data to improve
    treatments are all components of a knowledge economy. These economy brokers pass on their knowledge
    and services to workers in more traditional fields, such as farmers who use software applications and
    digital solutions to manage their farm crops better, advanced technological-based medical care procedures
    such as robot-assistant surgeries, or schools that provide digital study aids and online courses for students

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