Blog

KNOWLEDGE BASED ECONOMY IS A BOON OR NOT?

KNOWLEDGE BASED ECONOMY IS A BOON OR NOT

Introduction-

India has the potential to become a leading knowledge-based economy with its youth population and growing information technology, Manila based funding agency Asian Development Bank (ADB) said in a report. In the late 2000s, India’s growth reached 7.5%, which will double the average income in a decade.

Meaning-

The knowledge-based economy or knowledge economy is a system of consumption and production that is based on intellectual capital.

In simple words,A knowledge based economy is defined as an economy which is competent in producing ,promulgating and utilizing knowledge. Knowledge-based economy will surely result in an economic boom in India, as it will create more jobs, more opportunities for innovations and entrepreneurship.

“By leveraging its strengths in human capital and ICT services, India can become a major global knowledge-based economy.”    

—–Bindu N. Lohani, ADB, Vice-President for
Knowledge Management and Sustainable Development.
           

Turning this into reality will require many adjustments like:   

  1. Disassembling barriers to trade and investment
  2. Ameliorating infrastructure
  3. Technological advancement and innovative financing for micro businesses and entrepreneurs.
  4. Disassembling barriers to trade and investment
  5. Elevating the workforce, boosting research and development spending, and providing China employs nine times the total number of people employed in R&D as India
  6. Free competitive and collective work environment
  7. Encouraging new innovations
  8. Investing more on education

Given below are pillars which are essential for a country , in order to transform itself into a knowledge economy.

Higher education  together with the social, cultural and economic needs of the country,  research, innovation and entrepreneurship, increases international cooperation and competitiveness.New education policies need to be redesigned with focus on learning outcomes. The Indian government has been imparting short term skill training through the Pradhan Mantri Kaushal Vikas Yojana and other long term training through the ITI’s.

We need to work on our physical assets and effectively capitalize it with applying our knowledge assets. Harnessing the new knowledge economy at this time will help in  enhancing overall productivity and per capita income. India is not entirely dawdling  behind when it comes to a knowledge based economy. India  has developed knowledge-based growth, but this growth is yet to translate into a broader economic model.Our performance on a composite index that measures our ability to create, absorb and diffuse knowledge is 98 in a tally of 128 countries.

There is also a need to understand and recognize our own intellectual properties and nurture its creation, protect and reward the creators and engage in expanding the knowledge base making it . Indian IP policy despite being in compliance with the International standards provided by the TRIPS Agreement is often alleged to be weak and ineffective, particularly with regard to patent protection.As per latest GIPC Index released by the US Chamber of Commerce in 2015, India has marginally improved over the last two years in IP enforcement but it still has a long way to go – it currently comes up at second last position.

CONCLUSION

According to ‘World Population Prospects: The 2015 revision’ Population Database of United Nations Population Division, India has the world’s highest number of 10 to 24-year-olds, with 242 million. India can surge its way towards achieving its leading position of a knowledge driven economy by using this edge over the other countries. Recognising these trends and their relevance, India has set up a National Knowledge Commission (NKC) last year to suggest measures so as to secure her place in the new environment. The objective of NKC is to enable the development of a vibrant knowledge-based society. This requires both a radical improvement in existing systems of knowledge, and in creating avenues for generating new forms of knowledge.

REFERENCES-

  1. Economic Times

Article by-Ishita Patwal. A young fervid writer, pursuing BBA from IGDTUW.Her Leisure pursuits include dancing, traveling, gardening. 

Edited by-Shweta Mittal

2 thoughts on “KNOWLEDGE BASED ECONOMY IS A BOON OR NOT?

Comments are closed.