The Knowledge Economy

By Nick and Mike

 Definition

 The phrase was popularised if not invented

by Peter Drucker in his book ‘The Age of
Discontinuity’
 Meaning the use of knowledge to produce
economic benefits
 Especially in terms of high-technology
businesses such as computer software,
telecommunications and virtual services,
as well as educational and research
institutions
 So why’s it so important?
 The effect of location is diminished-Globalization
 A business product, as educational and innovative
intellectual products and services can be exported
for a high value return.
 As a result, goods and services can be developed,
bought, sold, and in many cases even delivered
over electronic networks.
 The economics is not of scarcity, but rather of
abundance. Unlike most resources that deplete
when used, information and knowledge can be
shared, and actually grow through application.
 Quote
 As the Scottish Executive admit: “Core skills are
highly valued when people are starting their
careers, but the instillation of these into
individuals happens at school, not thereafter: the
most successful part of the education and training
process is in the school.”

 MIKES INTERPRETATION OF QUOTE

‘This means that the government should stop

putting so mush money into adult training and
more into schools so that when the children start
work they do not need as mush training’
 So what’s wrong with it?
 Although the knowledge economy allows instant
access to information this may not always be a
positive thing as it allows people to access
information such as essays which they can then
pass of as their own work.

 Because the concept of knowledge is broad,

measuring knowledge, together with its acquisition,
adaptation and use, presents significant challenges-
WBO measures countries to identify the challenges
and opportunities they face in making the transition
to the knowledge-based economy.
 In the School
 Allows instant access to various
forms of information.
 Difficulties in security.

 Allows people in remote areas to

interact in the classroom.

 Training for the workplace in a ever

changing marketplace