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Knowledge economy and society

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

Publicado en: Tecnología, Educación
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Knowledge economy and society

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

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