DKE Part 1

DKE Part 1

1. Knowledge Industry as 4th sector of economy

   • 1. Knowledge industries where output is knowledge
     • E.g. business services, ICT's, education, the arts, media, finance
   • 2. Knowledge activities in non-knowledge industries
     • Innovation
   • Produces: Ideas, Experiences, Meaning; rather than Objects
   • Two Types of Knowledge
     • 1. Codified
     • 2. Tacit - still a place for F2F transmission

2. Convergence

   • defn: blurring boundaries between formerly seperate activities
     • e.g. computers & telecomm = ICTs and Internet; + globalisation = DKE
       • e.g. work + leisure blending into 24/7 work
   • lowered Barriers to Entry for services industry

3. Networks

   • network organisation, digitisation, digital dsruption
   • Increased: JV's; Strategic Alliances;
   • Marshall: Exploit external economies of scale
     • industry grouping geographically
     • growth of knowledge as result of observing others (Silicon Valley)
     • corporate partnerships share knowledge and customer base
   • Consist of:
     • Communicating Agents (share common interest)
     • Unstructured Org
     • Not a firm or market
     • Collaboration
   • Firms look like Network > Heirarchy:
     • - squashing the triangle
     • - virtual teams
     • - quality circles
     • -attention to triple bottom line
     • - growing importance of shared vision & values
     • - rise in stakeholder equity
     • - CSR

4. Services Sector Innovation

   • knowledge based services now driving innovation across OECD
     • Services = innovative strength of DKE
   • ICT investments adopted, adapted to produce products & services
     • e.g. E-delivery of services such as accounting, legal work, tutoring etc.
     • Internet adoption = business innovation exploded
       • a) incr. communication & connection
       • b) incr. speed of innovation
       • c) greater access
       • d) faster transaction processing
       • e) decline in costs of collab
       • f) e-delivery of servies
         • Now consumed ad produced seperately
         • Trade over distance now much easier
       • e.g. finance (online banking, trading); retail (shopping), music (downloads), education (electures) books (ebooks)
   • often products result from collaboration

5. Rising Inequality / Digital Divide

   • Factors:
     • destruction of ecosystem
     • global warming
     • global poverty
     • inequality
     • war / terrorism
   • globalisation lifted missions out of poverty
   • Result of:
     • Access to ICTs
     • Knowledge of how to use ICTS
   • can be BETWEEN countries or WITHIN countries
   • Results in:
     • Information Rich VS Information Poor
     • Informational poverty correlated with wealth and income poverty, economic & social opportunities therefore limited