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A key concept of the knowledge economy is that knowledge and education (often referred to as "human capital") can be treated as one of the following two: A business product, as educational and innovative intellectual products and services can be exported for a high value return. A productive asset It can be defined as "[P]roduction and services based on knowledge-intensive activities that contribute to an accelerated pace of technical and scientific advance, as well as rapid obsolescence. The key component of a knowledge economy is a greater reliance on intellectual capabilities than on physical inputs or natural resources."[11] The initial foundation for the knowledge economy was introduced in 1966 in the book The Effective Executive by Peter Drucker. In this book, Drucker described the difference between the manual worker (page 2) and the knowledge worker. The manual worker, according to him, works with his or her hands and produces goods or services. In contrast, a knowledge worker (page 3) works with his or her head, not hands, and produces ideas, knowledge, and information. The key problem in the formalization and modeling of knowledge economy is a vague definition of knowledge, which is a rather relative concept. For example, it is not proper to consider information society as interchangeable with knowledge society. Information is usually not equivalent to knowledge. Their use, as well, depends on individual and group preferences (see the cognitive IPK model) which are "economy-dependent".[12] |
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