Multilevel Upgrade of the Knowledge Economy Pyramid Model - The Correlation between Productivity and Competitiveness, and Impact on the Standard of Living

Octavian Serban

doi:10.18662/lumproc/ibmage2020/56

Octavian Serban Senior researcher within Bucharest University of Economic Studies, Certified Knowledge Manager at International Knowledge Management Institute; Bucharest, Romania

DOI: https://doi.org/10.18662/lumproc/ibmage2020/56

Keywords: endogenous growth, innovation, productivity, competitiveness, standard of living

Abstract

This work is describing the process of knowledge in the socio-economic global context, a pledge of the Endogenous Growth Theory extrapolated at macroeconomic level. There is a direct correlation between increased value of knowledge, improved productivity, increased competitiveness and enhanced welfare. A threefold approach of knowledge environment is consisting of scientific perspective, strategic perspective, and capacity building perspective. At the end of the process, the outcome is a higher standard of living for the individuals who contribute to the value creation of knowledge. Multilevel upgrading of the KEP model is a logical framework of generating value through the use of knowledge. The cycle is completed only when all the levels are acquired, from bottom to the top, and all the correlations are in place. The active role of the stakeholders determines the outputs and the outcomes of the knowledge system created. Once the standards of living are enhanced, the cycle is starting again from the bottom, but on a superior premise. Basically speaking, multilevel upgraded KEP model is an on-going knowledge process where innovation, creativity, leadership, and entrepreneurship, are reliable tools to achieve the welfare of the population. Today, the accent of the competition is moved from the vertical fields or sectors in the economy, such as manufacturing or retailing, agriculture or transportation, to horizontal functionalities, such as innovation, creativity, leadership, or entrepreneurship. The most adapted economies to this transformation will succeed to take advantage of competitiveness.

Author Biography

Octavian Serban, Senior researcher within Bucharest University of Economic Studies, Certified Knowledge Manager at International Knowledge Management Institute; Bucharest, Romania

Senior researcher within Bucharest University of Economic Studies, Certified Knowledge Manager at International Knowledge Management Institute; Bucharest, Romania

References

Adams M, Oleksak M. Intangible Capital: Putting Knowledge to Work in the 21st-Century Organization. USA: Praeger; 2010.

Cusolito AP, Maloney WF. Productivity Revisited: Shifting Paradigms in Analysis and Policy - The Elusive Promise of Productivity. Washington, DC: World Bank; 2018; pp. 1-25.

European Investment Bank. Smart development for a smart Europe. [Internet] Luxembourg: European Investment Bank. 2017 [cited 2020 Jul 11]. Available from: https://www.eib.org/en/publications/jaspers-smart-development

European Union “Using Learning Outcomes”. [Internet] Luxembourg: Publications Office of the European Union; 2011 [cited 2020 Jul 11]. Available from: https://www.cedefop.europa.eu/files/Using_learning_outcomes.pdf

Glatzer W, Camfield L, Møller V, Rojas M, editors. Global Handbook of Quality of Life -Exploration of Well-Being of Nations and Continents. Netherlands: Springer; 2015.

Gliddon DG, Rothwell WJ. Innovation Leadership. New York: Routledge; 2018. 150 p.

Haskel J, Westlake S. Capitalism without Capital: The Rise of the Intangible Economy. Princeton: Princeton University Press; 2017. 288 p.

Malerba F. Knowledge-Intensive Entrepreneurship and Innovation Systems. NY: Routledge; 2013. 352 p.

Neave GR. Knowledge, power and dissent: critical perspectives on higher education and research in knowledge society. France: UNESCO Publishing; 2006. 382 p.

Nonaka I, Takeuchi H. The knowledge-creating company: how Japanese companies create the dynamics of innovation. New York: Oxford University Press; 1995. 304 p.

OECD. Decoupling Of Wages from Productivity: What Implications for Public Policies?. In: OECD Economic Outlook [Internet]. 2019 [cited 2020 Jul 11];2018(2); Paris: OECD Publishing; Available from: https://doi.org/10.1787/eco_outlook-v2018-2-en

de Pablos PO, Edvinsson L. Intellectual Capital in the Digital Economy. UK: Routledge; 2020. 320 p.

Romer PM. Increasing Returns and Long-Run Growth. Journal of Political Economy [Internet]. 1986 [cited 2020 Aug 18];94(5):1002-1037. Available from: https://www.jstor.org/stable/1833190

Spath D, Warschat J, Kemp JL. Knowledge Synergy: A Practical Guide to Collaborative Knowledge Management. Berlin: Springer; 2007. 300 p.

Suh J, Chen D. Korea as a Knowledge Economy: Evolutionary Process and Lessons Learned. Washington DC: World Bank Publications; 2007.

Serban O, Suh J. 2016/17 Knowledge Sharing Program with Romania: Capacity Building on Productivity: Establishing Romanian Productivity and Competitiveness Center and Elaboration and Publishing of the Annual Guidebook for National Statistics on Productivity. Seoul: Ministry of Strategy and Finance, Republic of Korea: Government Publications; 2017. 164 p.

Şerban O. Knowledge Economy Pyramid: Transforming Knowledge Value in Increasing Productivity and Competitiveness. South Korea: Korea Institute for International Economic Policy; 2018.