Your SlideShare is downloading. ×

Knowledge economy and society


Published on

Short introduction of the knowledge economy and knowledge society presented at a doctoral course at JAIST.

Short introduction of the knowledge economy and knowledge society presented at a doctoral course at JAIST.

Published in: Technology, Education
  • Great job. You explained clearly on Knowledge economy and society.

    Roy Jan
    Are you sure you want to  Yes  No
    Your message goes here
  • Great demonstration about the need to innovate company models; how you can represent them succinctly; along with the intent to make advancement initiatives actionable. Superb use of images and obvious to see illustrative samples.
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. The Knowledge Economy and the Knowledge Society K 612 Next-Generation Knowledge Management Prof. Katsuhiro Umemoto JAIST - Japan Advanced Institute of Science and Technology Graduate School of Knowledge Science Ver 1.13 – 2006-10-15
  • 2. Have you ever thought about it?
    • What is the knowledge economy?
    • What is the knowledge society?
    • Why should we care about them?
  • 3. Knowledge economy
    • Proposed definition
    • Economic properties of knowledge
    • New economic dynamics
  • 4. Economy is about…
    • … production , distribution and consumption of goods and services
    • … markets and firms (in the case of capitalism)
    • … efficient allocation of resources
      • Land (raw materials, natural resources)
      • Labor (workers’ time and effort, expertise)
      • Capital (equipments, plants, wealth, etc.)
  • 5. What is the knowledge economy?
    • Knowledge has become the main resource
    • The pace of innovation is accelerating (not only in products and services, but also in processes, markets, sourcing, business models, etc.)
  • 6. Growth of K in the economy
    • Knowledge industries
      • Knowledge itself is the product/service (e.g., software, media, entertainment, consulting)
    • Knowledge-intensive industries
      • High level of K embedded in products/services (e.g., electronics, computer, pharmaceutical)
    • Traditional industries
      • Capital and labor still largely relevant (e.g., oil & gas, construction, transportation, retail)
    Pace of change
  • 7. Knowledge has different properties
    • Low rivalry (usually said non-rivalry )
      • Use by one person does not diminish it
    • Low excludability (usually said partial excludability )
      • It is difficult to prevent others from using it
    • Knowledge is both input and output
      • Today’s innovations feed tomorrow’s
    • In other words…
      • Knowledge is an infinite resource
      • Knowledge tends to spread
  • 8. The dynamics of K industries
    • Knowledge has positive externalities:
    • Spillovers (one person’s investment benefits others)
      • Investment in research/education benefits many
    • Increasing returns (positive feedback)
      • In costs : high upfront costs, low marginal costs
      • In supply : the more you know, the easier to acquire
      • In utilization : the more you use, the easier to use
      • In demand : the more you sell, the easier to sell
    • Network externalities (adopters   value  )
  • 9. Summary
    • Economic value comes mainly from knowledge
      • The pace of innovation accelerates
      • The economy evolves at different paces, with different levels of knowledge intensity
    • Knowledge has different properties
      • Low rivalry and excludability: tends to a public good
      • Multiplicative effect: “shoulders of giants” effect
    • A new competitive dynamics, with new rules
      • Increasing returns
  • 10. Knowledge society
    • Alternative views
    • Network-based knowledge society
    • New social dynamics
    • Ethical challenges
  • 11. Society is about…
    • … social relations (social interactions regulated by social norms , involving social positions and social roles )
    • … culture (patterns of social practice , norms of behavior, value systems, traditions , beliefs , etc.)
    • … institutions (social structures and mechanisms of social order and cooperation )
      • E.g., family, government, media, money, property, labor, etc.
    • Analysis of the K society is more complex!
  • 12. Alternative views on the K society
    • Primacy of scientific knowledge (Bell 1973; Stehr 1994)
      • K as source of authority and basis of social stratification
      • Scientific research as the ultimate source of knowledge
    • Rise of knowledge work (Drucker 1969; Reich 1991)
      • Fastest growing section of the workforce
      • Knowledge workers own their knowledge
    • Networked society (Castells 2000; Benkler 2006)
      • Networked economy, work and social relations
      • Enabled by information and communication technology
  • 13. A network-view of the K society
    • Two basic conditions
      • Society’s material needs are fulfilled, so there is greater space for non-market behavior
      • Tools for knowledge creation, utilization and sharing become widely available
    • Knowledge production, distribution and consumption becomes decentralized
      • Exponential growth in knowledge availability
      • Growth and expansion of social networks
  • 14. Networked dynamics
    • Open culture
      • Content is made publicly available (e.g., the whole Web, creative commons, WiFi)
    • The Blogosphere and social networking
      • Persistent, distributed, open conversation
      • Leads to unmediated communication, collective thinking and social mobilization
    • Peer production
      • Radically decentralized cooperative production (e.g., GNU/Linux, Wikipedia, Slashdot, Everquest)
  • 15. The ugly side…
    • The network can be used for both good and bad
    • Questionable content
      • Worthless (e.g., spam, ads, porn)
      • Strongly biased (e.g., propaganda, prejudice)
      • About unethical procedures (e.g., hacking, terror)
    • Questionable actions
      • Identity cheating, spyware, etc.
      • Bullying, defaming, etc.
      • Crime (e.g., phishing, hacking, theft, etc.)
  • 16. Summary
    • Three perspectives on the knowledge society
      • Primacy of scientific knowledge
      • Rise of knowledge work
      • Networked society
    • Networked-view of the knowledge society
      • Decentralization of knowledge production, distribution and consumption
        • More open, democratic social relations
        • Non-market behavior becomes salient
      • Conflict along the transition is expected
  • 17. Implications
    • Levels of analysis:
    • Societal
    • Organizational
    • Individual
  • 18. Societal level
    • Development of public policies on:
    • Scientific and technological research
    • Industrial development (K-intensive industries)
    • ICT infrastructure (access rights, digital inclusion)
    • Intellectual property (patents, copyright, commons)
    • Education (knowledge work and citizenship)
  • 19. Organizational level
    • External issues
      • Scan the environment (e.g., public policies, S&T development, competitors’ behavior, etc.
      • Improve knowledge creation and transfer through collaborative arrangements and acquisitions
      • Open channels with customers and society
    • Internal issues
      • Develop absorptive and innovative capacity
      • Manage knowledge work and workers
      • Explore contracting and outsourcing alternatives
  • 20. Individual level
    • Learn continuously (knowledge  value)
      • Formal and informal education
      • Challenging assignments
    • Manage own career (value  reputation)
      • Market oneself and manage opportunities
      • Cultivate professional and personal networks
    • Engage in knowledge networks
    • Develop ethical sense
  • 21. Summary
    • Knowledge economy and knowledge society follow distinct paths of analysis
    • Both have been extensively discussed, but there is much ground for work
    • Both bring about important practical implications at societal, organizational and individual levels
  • 22. Types of knowledge work Complexity of work Level of interdependence Judgment Routine Groups Individuals Source : Adapted from Davenport (2005), Thinking for a Living
    • Integration
    • Systematic work
    • Methodologies and standards
    • Integration across functional boundaries
    • Transaction
    • Routine work
    • Rules and procedures
    • Low-discretion workforce or information
    • Expert
    • Judgment-oriented work
    • Individual expertise and experience
    • Star performance
    • Collaboration
    • Improvisational work
    • Deep expertise across functions
    • Fluid deployment of flexible teams
  • 23. An emerging relationship through blogs Andrea accesses past entries from Lilia’s blog Lilia posts answers to Andrea in her own blog A new surge in reciprocal posts and comments after some time Direct exchanges through email and skype Source : Adapted from Efimova, Lilia (October 03, 2006), Artefacts of a weblog-mediated relationship: a visualisation , retrieved 2006-10-11 < 2006/10/03.html#a1839>
  • 24. Protecting the commons
    • Three layers in the commons infrastructure
    Informational (content) Logical (software) Physical (network) Creative commons Open software Network neutrality Forms of control Potential responses Source : Inspired by Benkler (2006), Wealth of Networks