The Call for Transformational Governance in the Knowledge Economy

Introduction

A key characteristic of the new global economy is its shift from a tangible asset-based economy to one that is reliant on intangible knowledge-based assets that depend heavily on human capital (DeVol et al., 2004). Here, knowledge-based inputs replace material inputs as the key productive forces in an economy (Stehr, 2002). These inputs are comprised primarily of human capital and innovation. The most technologically advanced economies are knowledge-based, where information and knowledge are direct productive forces that drive the economy.

The knowledge economy has resulted from the rise in knowledge-intensive work amidst increased globalization (Houghton & Sheehan Peter, 2000). Hence, governments are devoting increasing efforts to the development of knowledge-based industries, whose value chains are driven by human capital, innovation and technologies. In this chapter we refer to knowledge-based activities as knowledge work.

The knowledge economy is characterized by industries that engage in knowledge work. However, as we argue in subsequent sections, knowledge is inherently dynamic and abstract in nature. It differs from information, which is more static and easier to define. Hence, governance of knowledge work is more complex than information work.

The objective of this chapter is to develop an argument for a transformational approach to governance of a knowledge economy. We review literature on the knowledge economy and investigate regional efforts to develop a knowledge economy. We utilize findings from empirical investigations of three regions: San Joaquin Valley, California; Ennis, Ireland; and Singapore, to develop an argument for the importance of a transformational perspective towards governance at the regional level. Such policies relate to business activities that influence the development of continuous innovation. In this chapter, we discuss the call for a transformational perspective in governance to be relevant to the continuous innovation-driven knowledge economy.

This chapter is structured into four main sections. We begin by defining the concepts of governance, knowledge work, and the knowledge economy. We then present our theoretical framework, the case study method employed, and overviews of the three case study sites. In the next section, Findings, we discuss the key themes of the case studies drawn from the empirical relevant findings. In the final section, we consider the need for a transformational perspective to ensure successful governance of knowledge industries in a knowledge economy.