Man’s endless search to improve our way of life has driven different revolutions that have proven to not only expand our understanding of the world but also define a whole new future for generations and generations to come. In the age of information, the economy of the world shifted from largely agrarian systems towards a demand of ideas and how they can shape global innovations through an inexhaustible resource derived from the “human capital,” the knowledge economy.
Knowledge economy recognizes the role of education and knowledge as essentially productive assets to produce more innovative products and services across the globalized worlds of business, manufacturing, trading, and many other economic sectors. The main purpose of knowledge economy is to create an interconnection where sources of knowledge such as human expertise and trade secrets can be utilized to boost economic growth.
Several studies have suggested that there are different driving forces responsible in fueling this kind of economy that are changing the game in business especially in terms global competitiveness. Globalization is a big word in today’s business and it is one of the forces that drive knowledge-based economies around the world. For instance, today’s products and markets are now global in nature, making goods popular not only in their home countries but also across continents—and this is where the reliance on information proves to be important.
Efficient production for millions of manufacturing and software companies have to embrace knowledge-based resources to respond to a global demand of products and services. Thus, they turn to information workers to do the job with great efficiency and accuracy. Several developments in the information and technology sector have made this system possible. Through networking and fast connectivity via the Internet, the ‘global village’ found a more effective and faster way to do things together.
The end result of these forces working together enabled supplies to be developed, manufactured, distributed and sold whether physically or electronically to every part of the globe.