Knowledge-Based Social Entrepreneurship

Understanding Knowledge Economy, Innovation, and the Future of Social Entrepreneurship

Mitt Nowshade Kabir

• Editore: Palgrave Macmillan
• Anno: 2019
• ISBN:
  9781137348098
• Argomento: Negocios y empresa
• Categoria: Pequeñas empresas

Social entrepreneurship is on the rise and social enterprises are solving some of the most critical and enduring social problems by using innovative, pragmatic and sustainable business models. Access to knowledge thanks to the Internet and rapid expansion of the knowledge economy are opening new opportunities for social ventures. With knowledge-based social entrepreneurship where knowledge is the primary resource, more pressing social problems can be addressed by using advanced technologies. This book investigates this emerging concept, possibilities that it holds, its place in today's economy, and links bridges between knowledge, innovation, and social entrepreneurship. Academics, entrepreneurs, students, and NGOs will find the theoretical and practical information presented in this book extremely valuable.

© The Author(s) 2019

Mitt Nowshade KabirKnowledge-Based Social EntrepreneurshipPalgrave Studies in Democracy, Innovation, and Entrepreneurship for Growthhttps://doi.org/10.1057/978-1-137-34809-8_1

Begin Abstract

1. Introduction

Mitt Nowshade Kabir¹

(1)

North York, ON, Canada

Mitt Nowshade Kabir

End Abstract

We are witnessing a significant transition of the world economy to a newer phase of development where knowledge is an instrumental force. Knowledge is the main ingredient in innovation, entrepreneurship is a variation of innovation, and both of these are engines of economic growth are not novel concepts . What is unique in the present knowledge economy is the massive explosion of knowledge, its increasing transformation to a main factor of production, its growing role in enhancing productivity and competitiveness , and the extraordinary surge of its importance as the essential resource for the social and financial prosperity of nations.

For centuries, knowledge has been known and perceived as a driving force behind technological and scientific progress. It also has always been deemed as an enabler to the increasingly sophisticated production systems . The first Industrial Revolution provided a significant boost to the burgeoning position of knowledge in the production value chain . Its role has altered again with the emergence of information and telecommunication technologies (ICT) which ushered the Information Age. In the next decades, the importance of knowledge in the trade, business, and manufacturing has thrived and evolved into one of the primary factors of production in many industries. The rapid development of science and technology since the early 1990s strengthened the status of knowledge even more not just as the primary resource in all technology-related sectors of the economy but also as the most valuable facilitator of economic improvement and social transformation (Fig. 1.1).

Fig. 1.1

Four major waves of economic growth

Technological advancements and innovation supported by the human talents and new knowledge have initiated the elevation of living standards, the evolution of tools in productivity gain, streamlining of manufacturing processes through automation, and the emergence of new frontiers in the areas from quantum particles to space exploration .

Knowledge Economy

Knowledge has firmly established as the primary factor of production in today’s knowledge economy where humans and ICT are the two central mediums of knowledge activities necessary for innovation and technological progress to occur. The knowledge economy is an economic system based on intellectual capital and knowledge production , consumption, and dissemination (OECD 1996). In this new economy, technological advancement, new knowledge , and human capital work as the basis of growth. As of today, most developed nations have shifted to knowledge economy while many others are in transition. High technology presence in the production systems , high demand of niche knowledge, availability of a sophisticated innovation system , existence of a large pool of workforce with higher education, particularly, in science and technology sectors, a thriving entrepreneurial sector supported by institutional regime, and advanced ICT infrastructure are indicators that demonstrate an economy dominated by knowledge.

In post-industrial realm, ICT , knowledge-related activities, intangible assets, and human ingenuity are the key components that further new knowledge . The engine of the economic expansion in this new reality is the high technology-dependent sectors that utilize knowledge extensively. However, lately, the other industries are also displaying a substantial reliance on knowledge for their growth. The saliency of knowledge and tasks related to it are steadily surging in every sector whether it is farming, trading, construction, or manufacturing.

Knowledge Economy Definition

In knowledge economy, ideas, information, and knowledge are input resources ; the research and development processes are highly knowledge-intensive; and the products, services , and commodities are new information, intellectual properties, and technological innovations . The fluidity of knowledge flow throughout the production process and the industries shift from labor-intensive production to automated processes managed by skilled knowledge workers or robots characterize the knowledge economy . The observable factors this economy demonstrates are the active commercialization of knowledge, proliferation of knowledge-intensive jobs, granular segmentation of skills, adoption of advances of technology by consumers and by industrial processes, and educated human capital (Jessop 2000; Castells 1997).

The knowledge economy is where knowledge is the main production factor for manufacturing goods and services , and the growth of the economy is maintained by knowledge-intensive activities that expedite the advancement of technologies and science, boost wider technology adoption in the society, and prompt frequent obsolescence of older technologies (Powell and Snellman 2004). The dynamics that contribute to and sustain knowledge economy include intellectual properties, knowledge workers and technologies and technology-related infrastructure, government policies, governmental and non-governmental institutes, and innovation system conducive to creativity and entrepreneurship. World bank has identified the following four different pillars that support a knowledge economy (Chen and Dahlman 2005).

• Market-oriented institutes and economic environment—Developed economic institutes and sound economic policies supportive of the free market in resource allocation and utilization that foster creativity , innovation, and knowledge flow.
• Skilled and educated workforce—The education level and absorptive capacity of the employees conform with the increasing need for new skills and knowledge.
• High-level innovation capabilities —Organizations such as educational systems or firms engaged in R&D are capable of extracting, integrating, applying, and sharing knowledge at a level adequate to create new knowledge .
• Advanced ICT infrastructure—For smoother information flow, seamless interaction between knowledge holders and practical knowledge exchange modern telecommunications and information systems are necessary and must be available.

The prominence of knowledge-related activities such as knowledge acquisition , integration , and creation of new knowledge and its effective dissemination throughout all economic activities are aspects that illustrate the knowledge economy . These knowledge-related activities influence improved production processes , efficient use of resources , better delivery network , and innovation in every aspect of the economic value chain. Social development , improvement of living standard, and distributed wealth creation are possible to attain in a knowledge-based economy at a level which far outpaces the capability of natural resource-based economic development . Many advanced and transitory economies have experienced remarkable growth since the ushering of knowledge economy thanks to their market supportive policies, meticulous planning, targeted investment in skills and vocational development, upgraded educational system , the creation of effective public institutions, and the establishment of knowledge and technology-based industry sectors. In last three decades, several middle-income countries owing to their pragmatic and focused policies, enhanced technology-related educational base, and concerted efforts in developing knowledge-based sectors have succeeded to transfer their economies to the developed country level. Notable among them are Taiwan, Korea, Singapore, Ireland, Israel, and Estonia. A couple of other countries that are not lagging far behind in their practices and capacity building in the quest for the creation of a knowledge society are Chile and Malaysia (KEI 2012).

Knowledge economy demonstrates three unique characteristics that differentiate it from previous stages of economic development : A higher percentage of jobs in the economy is knowledge-intensive, knowledge outweighs other production inputs, and intangible capital demonstrates more weight than tangible . These unique traits of the knowledge economy not just boost the significance of knowledge, but they also accelerate R&D , innovation, and the growth of entrepreneurship in knowledge-intensive areas (Houghton and Sheehan 2000).

Human curiosity, creativity , and needs drive inventions and innovation. Innovation, on the other hand, can’t take place without such activities as knowledge assimilation , creation, and application in finding solutions to existing social, engineering, technological, and scientific problems. Entrepreneurs’ intention , desire, and zeal help discovering opportunities and market imperfections. Together these two aspects prompt new combinations and recombination of production factors to ensue. Exploitation of innovation and commercialization of products and services resulting from this development are the underlying power behind the creation of economic value and societal prosperity. Entrepreneurs are one of the leading groups of people who with their vision and actions, and by taking advantage of market opportunities engage in innovation, work on making profits and generating wealth. Therefore, it is not surprising that countries and regions which are more prosperous demonstrate advanced knowledge economy , matured knowledge sectors, and speedier expansion ...

Indice dei contenuti

• Cover
• Front Matter
• 1. Introduction
• Part I
• Part II
• Part III
• Back Matter