The Value of Knowledge Management in Building a Knowledge-Based EconomyBACK
To appreciate the importance of knowledge management (KM) in the creation of a knowledge-based economy, we must first understand what sir Francis Bacon meant when he said knowledge is power. Indeed, continuous knowledge creation and sharing has allowed the world to advance by giving humanity access to information that enhances our capability to develop innovations that drive progress. Developing nations that have embraced modernization are proof that knowledge is a powerful tool for boosting economies especially in this digital age.
What is a knowledge-based economy?
According to IGI Global, a knowledge-based economy is a type of economy that utilizes tools or mechanisms that promote the use of knowledge to increase the competitiveness of industries and various enterprises. In a knowledge-driven economy, knowledge as a whole becomes more valuable in determining the level and rate of growth rather than the volume of expenses and fixed assets.
Furthermore, the emergence of various technological advancements has allowed humanity to improve continuously. Regardless of industry, knowledge can now be considered an essential factor in ensuring a viable economic future. It is also an effective tool that fosters collaboration. In this age, it is important to look at knowledge as more than just handy information, but a reliable source of valuable data that can drive productivity and profit. A knowledge-based economy (KBE) banks on the power of different types of knowledge and their potential to be accessed and maximized by anyone in any industry or workforce environment.
Importance of Knowledge Management in a Knowledge-Based Economy
Global changes have paved the way for the establishment of new economic models, one of which is a knowledge-based framework. According to the World Bank, this new framework is built upon the foundations of education; ICT, science and technology, and innovation; infrastructure; and economic incentive regimes.
The rise of this new economic model has placed a huge importance on effective knowledge management, which is considered a crucial component of organizations looking to ensure their competitive advantage in this rapidly changing world. It is important to keep in mind that KM is an important driver of organizational development and is a vital tool for the longevity, efficiency and profitability of any business.
The Asian Development Bank was able to apply and successfully expand the KBE framework by including applications of KM to the socio-cultural and environmental domains. The results can be called knowledge-based development, or KBD. This expanded version of the KBE framework is the combination of sustainable development and knowledge management.
KM is essential for organizations because of the constant demand to create, manage, share and utilize knowledge effectively. Through knowledge management initiatives in a knowledge-based economy, we can better grasp the true value and nature of knowledge and its relevance to finding feasible and efficient strategies for attaining economic growth and stability.
ADEC Innovations Knowledge Management is a global innovator in the educational services industry. We bring sustainable and customized learning solutions to facilitate both professional and academic development. Dial +63 2 7750632 or visit www.km.adec-innovations.com to learn how our knowledge management solutions can help boost economies and drive progress.