Knowledge is power, or so says the old proverb. Every couple of generations, an event occurs that changes the landscape of the global economy. This generation’s event is the discovery that there is more to the proverb mentioned above than mere words.
In the age of information, intellectual capital is held in higher regard than ever before. It became so valuable, in fact, that economies shifted to a model described as knowledge economy. In these systems, creative thought, education, and training are assets, and it dictates the value of a company.
Education and Training
The most essential component of the knowledge economy is education. Universities and other school-like facilities provide training for human capital. For that reason, more and more companies engage in people lookup background checks before hiring.
Acquiring and mastering known knowledge is not the only function of universities, and other schools and training facilities. These institutions improve the technology and methods at our disposal.
Like-minded individuals gather in labs and universities to improve contemporary technologies. These scientists create new work methods for various fields. Each improvement should make tasks easier, less costly, and safer.
The Four Pillars
Knowledge economy relies on education and intellectual properties as the primary productive asset. Economies of the past relied on physical contributions and natural resources. Intellectual properties have the goal of advancing and creating breakthroughs in technology and scientific fields.
The World Bank used these four pillars to define the knowledge economy:
- Institutional structures that encourage entrepreneurship
- Skilled labor and a quality education system
- Access to information and communication technology infrastructures (ICTs)
- Cooperation between academia, the private sector, and civil society
Universities and companies engage in research and development. The results are to be applied on traditional fields such are farms, for example.
Computer scientists create software for these same farms. The farmer uses the new technologies to control a much larger farm with less effort.
The healthcare industry, for example, strives under the knowledge economy. Newly discovered data and continually improved technology make treatments easier and more accessible.
Medicine is reaching unimaginable heights with the assistance of education, training, and other components of the knowledge economy.
The Economy of the Future
The knowledge economy is proof that knowledge, indeed, is power. This system shows no signs of slowing down, as many companies and countries adopting it boast with enormous profits.
Knowledge economy values human capital and intellectual property as its most valuable asset. IT experts creating software to control a farm, then teaching farmers to use that software are some examples of the knowledge economy.