The knowledge-based economy: Trends and implications for Pakistan

Abstract

Review of economic history illustrates a number of transformations in economic "sources-of-production" and its integrated effect on the social structure. The industrial revolution caused transformation of the economy from agriculture to industry, resulting in improved living standards and development of rural communities into a metropolitan communities. Similarly the scientific revolution had its economic and cultural effects. Lately, around 1998-99, the concept of Knowledge as a source of economic development gained popularity, giving rise to the term "Knowledge-based Economies". These economies consider Knowledge as the most important factor for a competitive environment, for the countries competing against countries or firms against firms and teams against teams. Transformation of an economy into Knowledge Economy includes the reorganisation of firms, more efficient and dynamic capital markets, and relentless globalisation. Vigorous and substantial research is being continuously conducted in developed countries to analyse different aspects of a Knowledge-based Economy. On the basis of the growing importance of knowledge, it may be said that only those economies may compete internationally in the near future which can develop and integrate the basic ingredients of Knowledge into their economic systems and models. Keeping in view the lack of any serious research on the Knowledge-based Economy in Pakistan, an extensive study is needed on this hot topic. This paper presents a brief on development of Knowledge-based organisations (KBOs) and thus the emergence of Knowledge Economies in the global arena. The purpose of the discussion is to highlight the theme of Knowledge-based Economies in the emerging future, and to bring this critical topic in focus for the research community in Pakistan.