Some thoughts about knowledge economy

Knowledge economy either denotes the economy of knowledge as products/services or knowledge-based economy. The latter refers to activities or processes directed by knowledge as strategic assets. Two most striking contrasts of knowledge economy with physical economy lie in (1) the difference between abundance and scarcity and (2) the phenomenon of increasing return. Ideas don't necessarily get used up. Instead, ideas can breed even more ideas. The dynamics of the idea economy is meta-scientific, beyond physics and chemistry.

Knowledge economy is driven by globalization, information/knowledge intensity, and ubiquitous connectivity. The first two constitute demand factors while the third driving force represents a supply factor with regard to knowledge production and use. Wherever there are supply and demand, there is a market. The knowledge market can be internal or external. The internal market of knowledge results in improved innovation, which in turn is reflected in the external market. The basic outcome of knowledge exercised in the external market is economic benefit.

When viewed from the knowledge perspective, business management and business operations can take on a very different, and often deeper, meaning. Just as with e-everything, there'd be k-everything. Call it knowledge literacy or knowledge sensitivity if you want.