Definition of Knowledge Based Development (KBD) at a Macro Level
Discuss about the Importance Of KBD For Sustainable Success In A Digitized World.
The global economy is changing and the application of human knowledge and creativity is becoming increasingly important. Creation of wealth through the application of human knowledge, for instance, has already outpaced creation of wealth through extraction and processing of natural resources (Yigitcanlar and Bulu 2015, p.90). Book values in recent years have greatly been exceeded by market values of private corporations. Business corporations’ capacity to earn now relies more on its intangible knowledge assets over tangible assets. With increased digitalization of the world, knowledge has become vital for sustainable development. Revolution in information and communication technology and globalization has created atomized economies and societies (Yigitcanlar and Bulu 2015, p.90). And with the behavior of information and knowledge as economic goods, dramatic changes are arising in the value creation modalities (Asongu 2017, p.13). Knowledge-based development has become vital to sustainable success in this digitized world where growth and productivity have come to be dependent on knowledge. This paper describes the significance of KBD for sustained success in a digitized world.
KBD is a technical and theoretic field formed from a movement and a disciple. The discipline is the Growth Theory (GT) and the movement of origin is the Knowledge Management (KM) (Tchamyou 2017, p.1200). Growth Theory lays emphasis on the understanding of the principles of macroeconomic which defines upsurges in total production in regions and countries. Knowledge Management, on the other hand, arose in business as a response to the desire to identify, value, and capitalize knowledge-based factors of values (Tchamyou 2017, p.1200). A knowledge-based development (KBD) like knowledge management has evolved considerably in its existence. KDB programs distinguish from KM approaches based on the focus of their actions of development that is on the understanding of knowledge. The basic understanding of knowledge is that it is an object or a capacity transfer in the age of knowledge management practice (Secundo et al, 2015). KBD approach can be defined based on three levels which include social knowledge substructure, expansion of human capital, and social capital system expansion (Secundo et al. 2015, p.280). When these three approaches are combined, KBD can be defined as a substructure to enhance the social stock of knowledge, a strategy for economic development and a policy to satisfy the flow of knowledge.
Knowledge-based development has been evident in the day to day growth at urban, regional, national, and supranational levels. However, evidence suggests that success comes at a cost much more than goodwill (Del Rosario González Ovalle et al, 2004, p.120). For business sustainability in urban centers, three pillars of corporate sustainability are essential. These are the environmental pillar, the social pillar, and the economic pillar. The three pillars are formally regarded as people, planet, and profits (Oiu and Wu, 2017). The pillar that often attains the most attention is the environmental pillar as the focus of most companies lies on carbon footprints reduction and waster packaging. The social pillar is defined by the concept of social license where a viable business needs to be supported and approved by employees and stakeholders. The economic pillar of sustainability is where organizations believe they are on firm ground. This pillar is on the notion that for sustainability to be realized, profitability is necessary (Del Rosario González Ovalle et al, 2004, p.121). Other activities under this pillar include risk management, proper governance, and compliance.
Knowledge Cities, And Innovation Engines
In the modern media, the concepts of knowledge city convey a collection of cultural, technological, scientific, and academic and innovation potentials in cities and regions that foster economic growth. Recent decades have witnessed an increase in the role of dominant cities in nations that acquired industrialized economies as the generation and use of knowledge achieved localization (Carrillo, 2015). These cities have had predominant service oriented activities as well as a very qualified workforce. When you come right down to it, you realize that despite the difference in the development trends of cities, a trend is emerging where a number of cities turn to knowledge-based as opposed to resource-driven industrial fields. There has been a shifted focus towards a conducive environment for highly qualified human resources by city regions at the expense of the development of a business environment (Carrillo 2015, p.15). These regions have attempted to establish a living space capable of attracting and retaining talented people aimed at creating a symbolic knowledge base (Yigitcanlar 2017, p 3). This knowledge-based development is what defines a city’s growth path. The question raised by KBD, therefore, is on the type of improvements needed to integrate a city into a knowledge-based economy. The answer to this question can be obtained from the model of knowledge-based urban development (KBUD). KDB, as outlined by Carrillo et al. (2014, p.347), a process of social learning that develops a sustainable urban center through the use of knowledge capital.
The concept of KBUD is further characterized by Yigitcanlar (2014), as a framework of collaborative development that offers guidelines to the public, academic, and private sectors in developing future strategies capable of attracting and retaining talent in addition to establishing knowledge intensive policies on urban and regional centers (Yigitcanlar 2016, p.203). According to the interpretation by Asongu, knowledge-based urban development takes into consideration the knowledge and relevant territorial unit with a distinct weight (Asongu 2017, p.13). By defining knowledge-based development as a process, we set the center knowledge and evaluate changes resulting from outside influences. When the knowledge-based urban development is product driven, our focus lies in the knowledge at the expense of territorial unit. This is what is referred to as the peripheral factor (Yigitcanlar 2018, p.25). In another approach, it is referred to as an acquisition guided one where knowledge is depicted as a mere factor in the process of development which seems entrenched to the cultural, economic and social processes. When these three are used in combination, what result is a result that is proper and satisfactory?
In countries that are still developing, urbanization has brought about immense changes in the spatial distribution of people, resources together with land use and consumption (Page 2017, p.27). Such a process has been linked to social and economic development through most countries still lack the supporting framework and policies to leverage the process for improved development gains and a guide to a sustainable pattern (Page 2017, p.27). Although urbanization performs a vital function in the creation of wealth and opportunities as well as enable the good use of assets and creation of new ones, many countries are yet to harness these aspects of development (Hong et al. 2017, pg.59). Actually, these countries are yet to realize meaningful development plans as urbanization challenges outstrip the gains of development. For urbanization to be harnessed and its negative externalities mitigated, a coordinated approach and clear policy directions are needed. Many countries are yet to realize this as a majority of government departments are committed to dealing with various aspects of urban challenges. Furthermore, the overall understanding of cities in national development has become limited as urbanization has failed to feature as a national development opportunity. The key step to reassert urban space and territoriality lies in the development of a national urban policy (Hong et al., 2017). It is also essential in providing the direction and course of action necessary to provision urban development. The policy provides a framework through which pressing issues related to development in urban centers can be dealt with (Hong et al., 2017).
Rapid progress in information and communication technology has significantly increased the rate at which knowledge is created and disseminated especially with the decreased cost in computing and electronic networks. With computer power and electronic network increasingly becoming affordable, their efficiency has shot up with the quality and efficiency of knowledge (Qiu and Wu 2017, p.241). The resulting progress has resulted in the form of a range of innovations which has resulted in huge economic returns that have brought about the rise of various economic forces that that has attempted to drive the economy towards its goals and objectives alongside globalization (Yigitcanlar et al. 2017, p.2281). Knowledge is the powerhouse of growth in economy and productivity (Kamuriwo et al. 2017, p.500). Besides focusing on information and technology, knowledge helps in understanding economic performance. With rapid and increased speed in knowledge dissemination, modern technology has spread rapidly which has resulted into efficient production alongside increased probability of leaps and competition at the global level.
Among the elements involved in the successful transition to the knowledge economy includes investment in education and knowledge, modernization of information and technology infrastructure, development of the capacity of innovation and the establishment of a conducive environment for market transactions. Long-term strategies are necessary to foster sift to a knowledge-based economy (Tchamyou 2017, p.1200). These include knowledge of strengths and weaknesses as well as the combined effort of societal actors to come up with policies and investments relevant to trends and objectives. The distinguishing factor in a knowledge-based economy has been the rise of knowledge-based organizations occupying the knowledge markers. There exists a number of aspects through which the knowledge-based economy can be viewed. One aspect can be via the speed of development in technology more so those technologies that generate the knowledge economy like ICT. Another aspect can be drawn from the economic side where all areas in agriculture, industry, and administration have become knowledge intensive. All development leads and social groups depend on access to knowledge via the provision of continuing education for all (Oiu and Wu, 2017).
Greater efforts in the areas of education and training are essential in the knowledge economy as the new kind in education and training are required for growth. With the steady increase in the number of information workers, there comes a growing need for the formation of scientists and works the field and that of IT. Literacy to information technology can hinder progress (Ergazakis et al. 2006, p.80). Lifelong training alongside a higher level of scientific and technological employment as well as the need to acquire a better education is therefore essential to unlocking rapid knowledge development. Workers able to deal with encoded information and technological knowledge are accorded higher wages compared to manual labor or physical effort. Knowledge economy in summery has the following characteristics. Knowledge is the main factor in production. The knowledge economy is networked through the evolution of new communication methods (Ergazakis et al. 2006, p.81). It is digital which greatly impacts information volume, storage, and processing. Finally, it is a virtual reality where visualization becomes a reality with digitization and networks.
Conclusion
In conclusion, knowledge-based development has become vital to sustainable success in this digitized world where growth and productivity have come to be dependent on knowledge. For business sustainability in urban centers, three pillars of corporate sustainability are essential. These are the environmental pillar, the social pillar, and the economic pillar. Knowledge-based development has been evident in the day to day growth at urban, regional, national, and supranational levels. In the modern media, the concepts of knowledge city convey a collection of cultural, technological, scientific, and academic and innovation potentials in cities and regions that foster economic growth. Rapid progress in information and communication technology has significantly increased the rate at which knowledge is created and disseminated especially with the decreased cost in computing and electronic networks. Among the elements involved in the successful transition to the knowledge economy includes investment in education and knowledge, modernization of information and technology infrastructure, development of the capacity of innovation and the establishment of a conducive environment for market transactions.
References
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