The High-Tech Path: One route or many to the Knowledge-Based Economy? Bob Jessop Lancaster University Atlas of Ideas 16-18 th January 2007
Outline What is a Knowledge-Based Economy? Four answers Aren t all economies knowledge-based? So why emphasize KBE now? Alternative routes to the KBE? Beyond the KBE to.?
Answer 1 - Actually Existing Economy The OECD economies are increasingly based on [the production, distribution, and use of] knowledge and information. Knowledge is now recognized as the driver of productivity and economic growth, leading to a new focus on the role of information, technology and learning. The term knowledge-based economy stems from this fuller recognition of the place of knowledge and technology in modern OECD economies (OECD 1996, pp 3, 7)
Answer 2 - Ideological Mask of Bourgeoisie The KBE" is an ideological weapon in the hands of the bourgeoisie. The idea of a KBE" is a justification and illusion to cover the disastrous course for gearing society to pay the rich and is part of the arsenal of the "Third Way" illusions. [A]s an actual economic policy [it aims] to facilitate production in the cheapest part of the world and sell where the profits are highest using the scientific and technical revolution almost exclusively for this purpose and [it] gear[s] education to that purpose (El Din, 2005).
Answer 3 - Performative Paradigm [present in] policy, policy studies, actual policies or policy discourse, where master concepts from the sociology and economics of knowledge shape and define policy templates for economic and social development and wellbeing. At the level of policy the easy dualism of knowledge society and knowledge economy is embraced without difficulty or contra-diction. Despite some analysis of trends & collection of data, these twin concepts are empirically underdeterm-ined. They operate more like performative ideologies A whole series of self-legitimating sibling concepts spawned by policy analysts and think-tanks now roll off the tongue of any sociology undergraduate: inform-ation society, learning society, information economy, and, more recently, learning economy (Peters 2006: 1).
Answer 4 - The KBE Imaginary KBE: a strategic concept that is shaping business, government, and quality of life Involves production, management, distribution, and use of knowledge as key driver of economic growth, wealth generation, and job creation across the private, public, and 'third' sectors In a true KBE, knowledge is applied reflexively to the production of knowledge and most sectors tend to become more knowledge-intensive (design-intensive, creativity-intensive, etc)
KBE as Theoretical or Policy Paradigm policy paradigms derive from theoretical paradigms but possess much less sophisticated and rigorous evaluations of the intellectual underpinnings of their conceptual frameworks.. policy advisers differentiate policy paradigms from theoretical paradigms by screening out ambiguities and blurring the fine distinctions typical of theoretical paradigms. shifts between policy paradigms are discontinuous, follow theoretical paradigm shifts, but occur more frequently than theoretical paradigms since they do not require fundamental changes in a negative heuristic (Wallis and Dollery 1999: 5)
OECD as KBE Think Tank OECD is leading promoter of KBE discourses It tried National System of Innovation and Learning Economy discourses in early 1990s but they were, as the OECD itself admitted hard to operationalize and lacked rhetorical power. It then turned to the KBE and has succeeded in getting this discourse consolidated as a theoretical and policy paradigm. Achieved through range of discursive and material practices and a powerful cascade effect through policy documents
KBE and its Material Base New long wave of economic expansion Development of ICTs Reflexive application of knowledge to knowledge production Expansion & rescaling of world market New forms of competitiveness
Global Competitiveness Index
8.93 6.78 8.43 7.33 8.05 7.87 Israel -4 25 7.69 8.41 7.75 7.88 7.95 7.93 Spain -1 24 8.23 8.56 8.04 7.33 8.28 8.04 Slovenia 8 23 8.99 6.95 8.97 7.58 8.31 8.12 Taiwan (China) -2 22 8.76 8.32 7.58 7.86 8.22 8.13 Estonia 4 21 9.01 4.92 9.2 9.65 7.71 8.2 Singapore 2 20 8.13 8.44 8.46 7.81 8.34 8.21 France -3 19 9.38 6.11 8.51 8.84 8 8.21 Luxembourg 1 18 8.06 8.54 8.1 8.36 8.24 8.27 Ireland 1 17 7.97 8.65 8.52 7.98 8.38 8.28 Belgium 1 16 8.48 8.07 8.48 8.51 8.34 8.39 Austria -3 15 8.36 8.15 9.27 7.88 8.6 8.42 Japan 0 14 8.85 8.07 8.8 8.19 8.57 8.48 Germany 0 13 8.56 8.84 8.78 8.07 8.73 8.56 New Zealand -1 12 9.16 7.42 9.41 8.61 8.67 8.65 Switzerland -3 11 9.25 8.44 8.62 8.36 8.77 8.67 UK 0 10 8.63 8.52 9.05 8.51 8.73 8.68 Canada -5 9 9.08 8.67 8.63 8.51 8.8 8.73 Netherlands 1 8 9.11 9.15 8.82 7.89 9.02 8.74 Australia -1 7 8.91 8.38 9.42 8.26 8.9 8.74 USA -3 6 8.59 9.21 8.86 8.54 8.89 8.8 Norway 2 5 9.24 8.78 9.07 8.25 9.03 8.83 Iceland 11 4 8.84 9.16 9.71 8.79 9.24 9.12 Finland -2 3 9.77 8.98 9.72 8.41 9.49 9.22 Sweden 0 2 9.48 9.2 9.42 8.82 9.37 9.23 Denmark 4 1 ICT Education Innovation Economic Incentive Regime KI KEI Country Movement Rank
East Asia Rank Country 1 1 Singapore 8.2 7.71 9.65 2-1 Taiwan, China 8.12 8.31 7.58 3 0 Hong Kong, China 7.85 7.31 9.47 4 0 Korea, Rep. 7.6 8.23 5.7 5 0 Malaysia 5.69 5.52 6.2 6 0 Thailand 4.88 4.88 4.87 7 2 Mongolia 4.42 4.37 4.56 8 2 China 4.26 4.32 4.1 9-2 Philippines 4.03 3.82 4.66 10-2 Indonesia 2.96 2.96 2.96 11 0 Vietnam 2.69 2.82 2.28 12 0 Lao PDR 0.85 0.91 0.66
Lifelong learning in the knowledge based economy Creative and inventive thinking Global Singaporeans in a networked economy Attract global talents to our talent pool Strong technology culture Solid intellectual property protection Towards a knowledge-based SAF
While the knowledge-driven global economy is highly competitive, it also offers opportunities... In the knowledge-driven era, the economic competitiveness of a country does not necessarily depend on conventional factors like vast natural resources, a large population and physical capital, although having these assets helps. It is the quality of human capital, and the ability to innovate and effectively exploit new ideas and inventions globally that are critical success factors. Hence, it is at the level of a KBE that we stand the best chance of remaining relevant to the world economy
Changing Paradigms from an industrial economy to a KBE from input-driven to innovation-driven growth; from scarce resources to abundant knowledge; from diminishing returns to increasing returns; from stability to discontinuous change; and from perfecting the known to imperfectly seizing the unknown
Taiwan and the KBE 1 To embrace the advent of the knowledge economy, innovation and creativity, which have been regarded as cornerstones of national competitiveness, and have drawn national and international attention from both public and private sectors as well as academia Prof. WU Se-Hwa (NCC, CCIS)
Taiwan and the KBE 2
Taiwan and the KBE 3
Taiwan and the KBE 4
Taiwan as A Green Silicon Island Green Silicon Island (2001) a knowledge-based economy, a sustainable environment, a just society. To be implemented under seven principles: increasing knowledge, using resources effectively, prioritizing environmental protection, upholding justice, promoting regional balance, strengthening cooperation, and expanding the economy.
Varieties of KBE Policy - 1 Neo-Liberalism Liberalization: promote free competition De-regulation: reduce role of law and state Privatization: sell off public sector Market proxies in residual public sector Internationalization: free inward and outward flows Lower direct taxes: increase consumer choice
Varieties of KBE Policy - 2 Neo-statism Government as Agenda-Setter rather Planner Guidance of National Economic Strategy Audit Performance of Private and Public Sectors Public-Private Partnerships under State Guidance Neo-mercantilist Protection of Core Economy Expand Role for New Collective Resources
Varieties of KBE Policy - 3 Neo-Corporatism Re-balance competition and cooperation De-centralized 'regulated self-regulation' Widen range of private, public, and other 'stakeholders' Expand role of public-private partnerships Protect core economic sectors in open economy High taxation to finance social investment
Varieties of KBE Policy 4 Neo-Communitarianism (Knowledge Community) De-Liberalization limit free competition Empowerment enhance role of third sector Socialization expand the social economy Emphasis on social use-value and social cohesion Fair trade not Free trade, Think Global, Act Local Redirect taxes citizens' wage, carers' allowances
Knowledge Economy or Knowledge Society? Bell on Industrialism Dominance of economizing logic Firm is dominant organizational unit Bell on post-industrialism Dominance of sociologizing logic University is dominant organizational unit
Contradictions of the GKBE Intellectual Commons vs Intellectual Property Superfast hypermobile finance vs slow, place-bound productive investment Time-space compression vs patient social capital Information economy vs information society
Beyond the KBE to the Wisdom-Based Society Only after the last tree has been cut down Only after the last river has been poisoned Only after the last fish has been caught Only then you will find out that money cannot be eaten