The global economy currently is in transition from an industrial economy to a knowledge economy: to an economy in which knowledge is both an input of increasing significance into the productive process and a product. In a knowledge economy, labor costs become progressively less important, and scarcity of resources and economies of scale cease to apply.
One definition of the knowledge economy is that “the generation and exploitation of knowledge play the predominant part in the creation of wealth” (United Kingdom Department of Trade and Industry). Features of the knowledge economy include:
- Knowledge becoming more important as an input.
- Knowledge becoming more important as a product.
- Codified knowledge becoming more significant as a component of economic relations.
- Changes in information and communication technologies.
University Economist Reports
Supply and Demand of "STEM" Occupations in Arizona (PDF), November 2008
Employment, degree production, and migration of individuals in science, technology, engineering and mathematics.
Sunbelt Growth and the Knowledge Economy: An Exploratory Analysis (PDF), June 2007
Looks at education and income characteristics of migrants (proxies for the knowledge economy) to the Sunbelt, and the economic performance of the Sunbelt.
Universities in the U.S. National Innovation System (PDF), March 2006
A review of research and development efforts in the United States, including the role played by universities.
Related Articles and Reports
Tapping America’s Potential: Gaining Momentum, Losing Ground (PDF), Business Roundtable, July 2008
State Technology and Science Index: Enduring Lessons for the Intangible Economy, Milken Institute, June 2008
High-Technology Activities in Arizona: 2007 Update, ASU Center for Competitiveness and Prosperity Research, prepared for the Arizona Department of Commerce, January 2008
Arizona Innovation Indicators, ASU L. William Seidman Research Institute, prepared for the Arizona Department of Commerce, 2008
Measuring the Innovation Climate: Innovation Indicators Dashboard, Knowledge@W. P. Carey, December 5, 2007
Study Shows University Research Benefits Regional Economy, Knowledge@W. P. Carey, July 2, 2007
A Strategic Assessment of the Economic Benefits of Investments in Research in Arizona, ASU L. William Seidman Research Institute and University of Arizona Economic and Business Research Center, prepared for Science Foundation Arizona, June 2007
R&D Investments Drive State Economies: A Guide for Arizona (PDF), The Washington Advisory Group, June 2007
The Two Faces of Entrepreneurship, Part 2: Innovative Entrepreneurs Bring New Wealth to the Economy, Knowledge@W. P. Carey, September 13, 2006
Basic Research by Universities Is Critical to U.S. Innovation, Knowledge@W. P. Carey, March 15, 2006
Rising Above The Gathering Storm: Energizing and Employing America for a Brighter Economic Future, National Academy of Sciences, National Academy of Engineering, and Institute of Medicine, 2006
New Returns on Investment in the Knowledge Economy, ASU Morrison Institute for Public Policy, March 2005
The Role of Universities in Knowledge Economies (PDF), Arizona State University, February 15, 2005
Economic Development Via Science and Technology: How Can Arizona Improve Its Standing? (PDF), ASU Morrison Institute for Public Policy, June 2003
Related Links
Forfas (Ireland)
New Zealand Ministry of Economic Development