Economic Development Program For a Knowledge Economy Society
We are going through a paradigm shift from Industrial based economy to Knowledge-based economy. We can take advantage of this paradigm shift and create an impact and wealth in our region and the “emerging markets” by educating young, establishing a new “mindset”, creating global technology companies while creating new wealth creation mechanisms. These will be the pillars of Knowledge-based economy for many hundred years to come.
Emerging markets are “emerging” because they have missed the industrial revolution. Business ecosystems and society dynamics, what makes an industrial based economy function hasn’t been built in emerging markets. What has been built in emerging markets were replicas of Western businesses without the underlying ecosystems and without the necessary sociological aspects to support society and create value. There are other psychological aspects such as 400 years of business and “attitude” copying and not “creating” or “innovating” resulted in a lack-of self esteem in people.
The new renaissance is the ‘Knowledge Economy’ or as some call it, it is the ‘Information Revolution’. We are in the very beginnings of economic, social, financial and structural changes. In a Knowledge economy the structures of a company, a society and financial organizations and business models are still open questions to be answered.
There are many implications of a Knowledge economy. Some of them are mentioned below.
- Industrial economy is based on goods and exchanging these goods. Information economy is based on creating value through exchanging information or information based services, immaterial goods or digital goods.
- Knowledge economy is not industrial production without factories: it completely changes our perspective of machines and their efficiency. It is distributed and creative in its nature. People can connect anywhere in the world to create and deliver value. For the first time people anywhere can do anything.
- Industrial economy was based on information asymmetry. Thus the institutions in its ecosystem have been supporting information asymmetry. However, in Knowledge economy, there is no information asymmetry. This is very important because it allows any value company to be created anywhere in the world when/if “mindset” is there to nurture it.
- Centralized vs distributed is a big theme. Knowledge economy will shape central mechanisms; such as monetary systems. The change will be so disruptive that the organizational structures will change with it. The centralized linear structures will be replaced by distributed agile organizations.
- Software is core at this economy; as software is eating the world; ie. Software is changing all of the industries; with software, inefficiencies no longer exist. With software solutions scale. Software is already eating many markets from media to finance to fashion to retail … Every industry is becoming an information economy.
- Now one person can make more difference than any other time. The barriers to create a product have decreased.
- Knowledge based economy enables a world with like minded people to create value together, it almost creates a virtual world and virtual citizenship for people, all connected to each other with the same vision of the world, with the same values.
- Knowledge economy is more about a mindset, it is not about where people are born but what people do, how people think, what value –systems they believe in.
- The value system is based on globally connected, innovation, science, “long term” value creation, abundance mindsets.
- It creates a compassionate society….
We are establishing an Economic Development Program, whose mission is to use technology as a change agent and help to build the pillars of knowledge economy in developing new world societies and economies.
- The program is about ideas, creating companies, educating young and entrepreneurial minds, nurturing minds of the young and entrepreneurs and connecting like-minded people to create more ideas and more companies and thus creating new wealth generation mechanisms.
- The long term mission of the Economic Development Program, is to build societies which are basis for next generation civilization and art and culture.
- Just as England became the epicenter of Industrial revolution starting from the East India company until today, the Economic Program will target building the pillars of knowledge economy with new business models, creating new companies and educating young to create more companies and more wealth. This time the geographies will not matter, but the mindset and values will matter. In order to be a citizen of the knowledge based economy, one will create value and believe in abundance and live in an innovative mindset.
- This will include changing the wealth creation mechanisms and connecting and nurturing like-minded people.