Abstract:

Knowledge-based economy is re-defining enterprises, re-formatting working styles, empowering individuals and re-shaping the links between education and business tasks in today’s globalized world. Emerged communication and information technologies especially invented in six decades ago is still changing the nature of business and the economy dramatically. It is obvious that transition to knowledge-intensive business models become popular since late 1950s. Also it is clear that advent of the knowledge economy shapes and changes the rules for enterprises that organize their activities in the global market places. Additionally intellectual capabilities become more important than physical inputs which was very important for the first machine age. The application of knowledge is one of the main sources of growth in the global economy and it becomes the strategic factor for the success. Having sufficient national production, sustainable growth, strong economy and modern technologies to create a welfare society is crucial for any modern nation. This study presents the concept of the knowledge economy and it's framework in this respect. Developed by World Bank “Knowledge Assessment Methodology” is one of the important methodologies in order to measure the progress of countries towards having a knowledge based economy. It has 4 pillars including 83 structural and qualitative variables and 12 knowledge indicators. World Bank's four Knowledge Economy pillars are economic and institutional regime, education, innovation, and Information and Communication Technologies (ICTs) developed for countries to do fundamental assessment of countries’ readiness for the knowledge economy and help them the transition to a Knowledge-based Economy. Also in this paper the analysis of knowledge economy for Turkey especially the role of innovation, ICTs and education pillars are examined. 

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