The Knowledge Economy as a Development Potential for Industrialized Countries and a Perspective for Developing Countries

The Knowledge Economy as a Development Potential for Industrialized Countries and a Perspective for Developing Countries

Fredj Fhima (Institute of Higher Commercial Studies, University of Sousse, LaREMFiQ, 4054 Sousse, Tunisia) and Walid Trabelsi (Higher Institute of Management, University of Tunis, RIM-RAF, 1002 Tunis, Tunisia)
Copyright: © 2019 |Pages: 17
DOI: 10.4018/IJKBO.2019100102

Abstract

Based on a panel of 51 countries (22 developed and 29 developing) for a period from 2002 to 2012, this study develops a number of indicators and indexes to compare these two groups of countries according to their knowledge economy content. Results show that in OECD countries, knowledge plays a central role in economic performance and growth. These countries have managed to convert knowledge to ability; they are called knowledge-based economies. Developing countries, although they use knowledge, only few of them are regarded as knowledge-based. The success of a strategy of building the knowledge economy requires investments in knowledge which translates into expenditures on research and development and a strong education system.
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The Emergence Of The Knowledge Economy

The knowledge economy is an economy “which is directly based on the production, distribution and use of knowledge and information” (OECD, 1996, p. 7). According to the World Bank it is “essentially an economy where knowledge is the main engine of economic growth” (Chen Derek & Dahlman, 2006, p. 1). Asia-Pacific Economic Cooperation (APEC) defines knowledge economy as “an economy in which production, distribution and application of knowledge, are the main driving factors for economic growth, generating wealth and employment in all industries” (Mortazavi & Bahrami, 2012, p. 284).

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