The knowledge economy, or knowledge-based economy, is an economic system in which the production of goods and services is based principally on knowledge-intensive activities that contribute to advancement in technical and scientific innovation. The key element of value is the greater dependence on human capital and intellectual property as the source of innovative ideas, information, and practices. Organisations are required to capitalise on this "knowledge" in their production to stimulate and deepen the business development process. There is less reliance on physical input and natural resources. A knowledge-based economy relies on the crucial role of intangible assets within the organisations' settings in facilitating modern economic growth.
>>>PUT SHARE BUTTONS HERE<<<
- ⭐ Core Definition: Knowledge economy
- Knowledge economy in the context of Technology
- Knowledge economy in the context of Post-industrial society
- Knowledge economy in the context of Alberta
- Knowledge economy in the context of Liverpool Knowledge Quarter
- Knowledge economy in the context of Intellectual capital
Knowledge economy in the context of Technology
Technology is the application of conceptual knowledge to achieve practical goals, especially in a reproducible way. The word technology can also mean the products resulting from such efforts, including both tangible tools such as utensils or machines, and intangible ones such as software. Technology plays a critical role in science, engineering, and everyday life.
Technological advancements have led to significant changes in society. The earliest known technology is the stone tool, used during prehistory, followed by the control of fire—which in turn contributed to the growth of the human brain and the development of language during the Ice Age, according to the cooking hypothesis. The invention of the wheel in the Bronze Age allowed greater travel and the creation of more complex machines. More recent technological inventions, including the printing press, telephone, and the Internet, have lowered barriers to communication and ushered in the knowledge economy.
Knowledge economy in the context of Post-industrial society
In sociology, the post-industrial society is the stage of society's development when the service sector generates more wealth than the manufacturing sector of the economy.
The term was originated by Alain Touraine and is closely related to similar sociological theoretical concepts such as post-Fordism, information society, knowledge economy, post-industrial economy, liquid modernity, and network society. They all can be used in economics or social science disciplines as a general theoretical backdrop in research design.
Knowledge economy in the context of Alberta
Alberta is a province in Canada. It is a part of Western Canada and is one of the three prairie provinces. Alberta is bordered by British Columbia to its west, Saskatchewan to its east, the Northwest Territories to its north, and the U.S. state of Montana to its south. Alberta and Saskatchewan are the only two landlocked Canadian provinces. The eastern part of the province is occupied by the Great Plains, while the western part borders the Rocky Mountains. The province has a predominantly continental climate, but seasonal temperatures tend to swing rapidly because it is so arid. Those swings are less pronounced in western Alberta because of its occasional Chinook winds.Alberta is the fourth largest province by area, at 661,848 square kilometres (255,541 square miles), and the fourth most populous, with 4,262,635 residents. Alberta's capital is Edmonton; its largest city is Calgary. The two cities are Alberta's largest census metropolitan areas. More than half of Albertans live in Edmonton or Calgary, which encourages a continuing rivalry between the two cities. English is the province's official language. In 2016, 76.0% of Albertans were anglophone, 1.8% were francophone and 22.2% were allophone.
Alberta's economy is advanced, open, market-based, and characterized by a highly educated workforce, strong institutions and property rights, and sophisticated financial markets. The service sector employs 80% of Albertans, in fields like healthcare, education, professional services, retail, tourism and financial services. The industrial base includes manufacturing, construction, and agriculture (10%, 5%, and 2% of employment respectively), while the knowledge economy includes about 3000 tech companies employing an estimated 60,000 people, mainly in Calgary and Edmonton. The energy sector employs 5% of Albertans but significantly impacts exports and GDP. Alberta's exports, primarily US-bound, consist of 70% oil and gas, 13% food products, and 12% industrial products. Oil and gas are culturally influential, having shaped politics, generated "striking it rich" narratives, and created boom-and-bust cycles. In 2023, Alberta's output was $350 billion, 15% of Canada's GDP.
Knowledge economy in the context of Liverpool Knowledge Quarter
The Knowledge Quarter is an innovation district covering 450 acres of the Liverpool city centre, incorporating the vicinity around London Road, Islington, the Fabric District, Paddington Village and part of Canning.
The Knowledge Quarter contains a number of institutions that operate within the knowledge economy. Some of the institutions within the area include the University of Liverpool, Liverpool John Moores University, Royal Liverpool University Hospital, Liverpool School of Tropical Medicine, Royal College of Physicians and various others across Liverpool Science Park and Paddington Village.
Knowledge economy in the context of Intellectual capital
Intellectual capital is the result of mental processes that form a set of intangible objects that can be used in economic activity and bring income to its owner (organization), covering the competencies of its people (human capital), the value relating to its relationships (relational capital), and everything that is left when the employees go home (structural capital), of which intellectual property (IP) is but one component. It is the sum of everything everybody in a company knows that gives it a competitive edge. The term is used in academia in an attempt to account for the value of intangible assets not listed explicitly on a company's balance sheets. On a national level, intellectual capital refers to national intangible capital (NIC).
A second meaning that is used in academia and was adopted in large corporations is focused on the recycling of knowledge via knowledge management and intellectual capital management (ICM). Creating, shaping and updating the stock of intellectual capital requires the formulation of a strategic vision, which blends together all three dimensions of intellectual capital within the organisational context through exploration, exploitation, measurement, and disclosure. Intellectual capital is used in assessing the wealth of organizations. A metric for the value of intellectual capital is the amount by which the enterprise value of a firm exceeds the value of its tangible (physical and financial) assets. Directly visible on corporate books is capital embodied in its physical assets and financial capital; however all three make up the value of an enterprise. Measuring the real value and the total performance of intellectual capital's components is a critical part of running a company in the knowledge economy and Information Age. Understanding the intellectual capital in an enterprise allows leveraging of its intellectual assets. For a corporation, the result will optimize its stock price.