Changing dimensions and growth of knowledge based economy in India.

By Jhamb, Rajesh Kumar,Kaushik, Sanjay Publication: Journal of Academy of Business and Economics Date: Saturday, March 1 2008 You are viewing page 2 ABSTRACT Knowledge management is a new emerging discipline with its inter-disciplinary approach in today's business world. It has now become a mainstream priority for any business organization. It has become the driving force for social development. Globalization of the technology would

indeed bring the world closer. Today, knowledge economy is converting intellectual assets of manpower into productive force. It helps in reserve knowledge resources that already exist in the economy. This paper highlights the concept of knowledge management and its need, components, India's position in the global economy. Growth of India as knowledge economy, current issues and challenges faced by Indian knowledge economy. Keywords: Knowledge Economy / Growth / Challenges / Trends 1. Introduction The present era is the era of knowledge economy. Knowledge management is a dominant force in the overall strategy of the organizational management. Knowledge management is the process of gathering, managing and sharing with associates the knowledge in the organization and use of enterprise in knowledge assets. In knowledge economy, Knowledge, Expertise and Innovation-rather than land and machinery are the primary assets of an organization. India is one of the world's largest economies, made tremendous growth in the social and economic development since 1980's onward. Dale Neef (1999) says that "The changes taking place in the world economy nave made knowledge management a business necessity at least for large multinationals that operate on a global scale, or hope to". In the knowledge-based economy, knowledge management has received considerable attention in the economy. The economists have applied knowledge management principles to provide attractive economics and managerial services to the satisfaction of the users. 2. KNOWLEDGE MANAGEMENT Knowledge management is visionary, which generate enthusiasm, buy-in, and motivates managers to work together toward reaching common goal. It draws upon the expertise relationships and alliance. Knowledge management is the management of diffusion and transfer of knowledge. This is a concept in which an organization or an institute consciously and comprehensively gathers organizes, share and analyze its knowledge in terms of resources, documents and people skills. Knowledge management can be described as--"Knowing what you know and then bringing from it." Knowledge management is the form of application of strategic management practice to human resources as whole which are the carrying vectors of Knowledge"-(Nonaka, 1995) "Knowledge is information that has value"--(Elliott, 1996) "Knowledge management is the art of creating value from an organization's intangible assets"--(Sveiby, 2000). "Knowledge management is the ability to create and retain greater value from core business competencies"--(Kirk klasson) "A form of expertise management which draws out tacit knowledge, making it accessible for specific purpose to improve the performance of organization about how the organization's know-how should be structured, organized located and utilized to provide the most effective action at that point in time."--Bradbent. 3. INDIA AS KNOWLEDGE BASED ECONOMY Knowledge based economy is concerned with the expectation and development of the knowledge asset of an economy with a view to furthering the economy's objectives. Indian knowledge based economy is based on the concept of "Improving ourselves by learning from others". In today's scenario, the time is very favorable for India to make its transition to the knowledge-based economy that creates, disseminates and uses knowledge to enhance its growth and developments. The knowledge economy is after taken to mean only high technology, Industries or information and communication technology. The domestic corporate sector has shown a remarkable level of absorption of information services into its main mainstream operation to face challenges of globalization and economic liberalization. The companies like INFOSYS, WIPRO, TCS, ICICI BANK, EUREKA FORBES also influence the knowledge economy in India. The major input for knowledge economy has come from the accelerating rate of change in the business world. Whenever changes occur, people need new knowledge to do their work.

Changing dimensions and growth of knowledge based economy in India. By Jhamb, Rajesh Kumar,Kaushik, Sanjay Publication: Journal of Academy of Business and Economics Date: Saturday, March 1 2008 You are viewing page 2 ABSTRACT Knowledge management is a new emerging discipline with its inter-disciplinary approach in today's business world. It has now become a mainstream priority for any business organization. It has become the driving force for social development. Globalization of the technology would

indeed bring the world closer. Today, knowledge economy is converting intellectual assets of manpower into productive force. It helps in reserve knowledge resources that already exist in the economy. This paper highlights the concept of knowledge management and its need, components, India's position in the global economy. Growth of India as knowledge economy, current issues and challenges faced by Indian knowledge economy. Keywords: Knowledge Economy / Growth / Challenges / Trends 1. Introduction The present era is the era of knowledge economy. Knowledge management is a dominant force in the overall strategy of the organizational management. Knowledge management is the process of gathering, managing and sharing with associates the knowledge in the organization and use of enterprise in knowledge assets. In knowledge economy, Knowledge, Expertise and Innovation-rather than land and machinery are the primary assets of an organization. India is one of the world's largest economies, made tremendous growth in the social and economic development since 1980's onward. Dale Neef (1999) says that "The changes taking place in the world economy nave made knowledge management a business necessity at least for large multinationals that operate on a global scale, or hope to". In the knowledge-based economy, knowledge management has received considerable attention in the economy. The economists have applied knowledge management principles to provide attractive economics and managerial services to the satisfaction of the users. 2. KNOWLEDGE MANAGEMENT Knowledge management is visionary, which generate enthusiasm, buy-in, and motivates managers to work together toward reaching common goal. It draws upon the expertise relationships and alliance. Knowledge management is the management of diffusion and transfer of knowledge. This is a concept in which an organization or an institute consciously and comprehensively gathers organizes, share and analyze its knowledge in terms of resources, documents and people skills. Knowledge management can be described as--"Knowing what you know and then bringing from it." Knowledge management is the form of application of strategic management practice to human resources as whole which are the carrying vectors of Knowledge"-(Nonaka, 1995) "Knowledge is information that has value"--(Elliott, 1996) "Knowledge management is the art of creating value from an organization's intangible assets"--(Sveiby, 2000). "Knowledge management is the ability to create and retain greater value from core business competencies"--(Kirk klasson) "A form of expertise management which draws out tacit knowledge, making it accessible for specific purpose to improve the performance of organization about how the organization's know-how should be structured, organized located and utilized to provide the most effective action at that point in time."--Bradbent. 3. INDIA AS KNOWLEDGE BASED ECONOMY Knowledge based economy is concerned with the expectation and development of the knowledge asset of an economy with a view to furthering the economy's objectives. Indian knowledge based economy is based on the concept of "Improving ourselves by learning from others". In today's scenario, the time is very favorable for India to make its transition to the knowledge-based economy that creates, disseminates and uses knowledge to enhance its growth and developments. The knowledge economy is after taken to mean only high technology, Industries or information and communication technology. The domestic corporate sector has shown a remarkable level of absorption of information services into its main mainstream operation to face challenges of globalization and economic liberalization. The companies like INFOSYS, WIPRO, TCS, ICICI BANK, EUREKA FORBES also influence the knowledge economy in India. The major input for knowledge economy has come from the accelerating rate of change in the business world. Whenever changes occur, people need new knowledge to do their work.

Knowledge based economy is all about enhancing the use of organizational knowledge through sound practices of information management and organizational learning. The 21st century is now the era of knowledge. Knowledge economy has gone through series of steps, making up an ongoing life cycle. In this phase, it is important to go to all the sources available and judge the usefulness of the captured knowledge. Speed user friendliness, efficiency of access and accuracy of information are important elements to be considered throughout the organizing phase of knowledge based economy. The countries that will build themselves by undertaking the dynamics of the knowledge and create true knowledge society will survive and succeed in the today's era. Knowledge management is a sub component of knowledge based society or knowledge economy. Some of the characteristics of India as a knowledge based economy have followed:-* An efficient innovation system as a powerful tool for social and economic transformation. * Enlightened people making better use of intellectual assets for a dynamic information system. * Generating, absorbing, disseminating and protecting knowledge to create economic wealth of Indian economy. * Developing skills, competencies innovation for the skilled workers to make better use of external information. * Strengthening the Institutional and economic regime and saving real time money through efficiencies. * Enhancing employee's problem solving capacities to have a positive impact on business processes. * Facilitating sharing knowledge to help quickly the less trained workers to achieve higher performance levels. * Building mutual trust between knowledge workers and management to facilitate cooperation in handling sensitive tasks. There are specifically development in Human Resource development, Information Technology (IT), Innovation Education System (IES) and Quality Based Management has made India a better knowledge based economy. These are as follows:-3.1 Human Resource Development in Knowledge Based Economy In the knowledge era, the pressure on manpower is mounting day by day due to constant change in technology, shorter product cycle as well as short span of market. Today, the trained manpower is there for every industry. E learning has become a vital function of the knowledge economy. It has helped in meeting the requirements of the new economy. It has helped in converting human population into Human Potential which leads to build a knowledge economy comprising of scientists engineers, doctors, professionals etc. 3.2 Information Technology In Knowledge Based Economy Information Technology connotes as assemble of technologies, which is one of the component of profitable knowledge economy. All types of technologies are today being associated with the knowledge based economy i.e. Internet, Intranet, Web Technology, DBMS, Information retrieval, Data mining etc. Information technology has become a powerful tool for promoting innovation and realizing reengineering. It has helped in setting up various knowledge Network services platforms in India.

3.3 Innovative Education System In Knowledge Based Economy India is one of the fastest growing economies with a whole lot of talent. There is lot of new techniques, innovations, learning methods, Knowledge sharing and disseminating of information. It delivers knowledge at desktop of the users through innovation technology platform i.e. VEDAS (Virtual Education Delivery & Assessment System). India possesses a large pool of highly educated and vocationally qualified manpower, which creates an effective cadre of "knowledge workers'. It focuses on learning rather than formal education which leads to develop core skills, competencies among the manpower, which are very strong in the quantitative analysis and empower the youth by deskilling and up killing. 3.4 Quality Based Management In Knowledge Based Economy It helps in understanding the users need more accurately with ongoing evaluation of collection and services, which leads to user-friendly economy. It helps in integrating the overall mission and plans of an economy. Quality based management is being pursued in Indian making knowledge sharing more worthwhile. 4 GROWTH OF INDIA AS KNOWLEDGE BASED ECONOMY 4 GROWTH OF INDIA AS KNOWLEDGE BASED ECONOMY The well educated and skilled people of India help in creating, sharing, disseminating and using knowledge effectively in Indian economy with the growth of secondary and tertiary education along with the primary education help in developing core skills nag encourage creative and critical thinking. It also helps the various factors to change their skills necessary to be competitive in the global economy. India also boasts of remarkable and impressive global achievements in so many industrial sectors, specially Information Technology, Telecom, Insurance and Banking Power etc,. Many high quality services are provided in the economy with a very low price. The growth of the Indian economy is due to strategic information system, better policy and legal framework, skilled human resources development. In India, economy has major advantages has Knowledge player. There is tremendous increase multiple perspective of the knowledge-based economy with acquisition of knowledge and rescued cost of it. There ate significance changes in the theoretical and practical experience in designing and implementing of knowledge based economy. Vigorous growth with strong macro economic fundamentals has characterized development in the Indian economy. A major development related to trade policy was the operationalisation of the special Economic Zone (SEZ) Act, 2005 and rules were notified on February 2006 to give transparency and stability to the policy. India was one of the first in Asia to recognize the effectiveness of the Expert Procession Zone in promoting Exports. A formal approval has so far been granted to 237 SEZ proposals and in-principle approval has been granted to 164 SEZs proposals. Notification has already been issued in respect of 63 SEZs. These SEZs have so far provided direct employment to the 15097 persons and 890700 additional jobs will be created by December 2009. Investment will be around Rs 58,459 core. India Regional Trading Agreements (RTAs) are known as building blocks towards the overall objectives of the trade liberalization complementing the multilateral trading system. The impressive growth of the industrial sector, propelled by robust growth in manufacturing has continued unabated during the current year so far. Year on year industrial growth of 10.6 percent in the the first Nine months of 2006-07 was the highest recorded since 1995-96. Manufacturing sector contribute 91.1 Percent improved performance. The micro and small enterprise (MSE) constitute an important segment of the Indian economy; contribute around 39 percent of the country's manufacturing output and 34 percent of its export in 2004-05. It provides employment to around 29.5 million people in the rural and urban areas of the country. The inflow of Foreign Direct investment (FDI) has registered robust

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