On knowledge economy

Renaissance, Enlightenment movements, scientific discoveries contributed significantly to authenticity of knowledge

Though life might be something one gets for free, living it is hardly as such. That is, minimal survival, let alone thriving, demands meeting the inherent primary needs that humans are born with. The need for water, oxygen, and food, to say the least, is crucial in this regard. Though nature supplies, through its restorative process, the first two, the uninterrupted supply later demands conscious human efforts. This makes food the fuel to drive the engine of the biochemical, physiological, neurological, and physical activities that make the economic system the axis of efforts across human history.

In the initial days of human existence, the means of production, consumption, and distribution have driven the course and direction of knowledge, mainly through the conditioning that experiences unleash. The subsistence nature and evolution of foraging bands, pastoralists, and the earliest horticultural practices of slash and burn characterised this. In other words, the earliest subsistence systems could be called economies of knowledge.

For instance, the need for food security and sustainable livelihoods drove humans to settle in riverine areas that provided water for cultivation. This is why many civilisations thrived along rivers. The shift occurred when extensive agriculture and accumulated knowledge over millions of years allowed the latter to drive the economy, contrary to the earliest times. However, knowledge consumption remained focused on its tangible economic manifestations.

Among the foundational forces shaping civilisations, surplus food production and the pursuit of knowledge played pivotal roles. The increasing abundance of food not only facilitated a shift toward a sedentary lifestyle but also directed focus towards the production and consumption of knowledge. Consequently, an unprecedented surge in knowledge emerged, shaping and guiding the course of human life. The scientific method further empowered humans to validate existing facts, create new knowledge, and strengthen their trust in the capacity of the knowledge to lead them along promising paths. Notably, Greek and Roman contributions exemplify the objectivity and practical utility of knowledge in this context.

The Renaissance, Enlightenment movements, and scientific discoveries contributed significantly to the authenticity and accessibility of knowledge. The Industrial Revolution stands out as a crucial manifestation of knowledge consumption, influencing tangible economic activities. However, as knowledge discovery expanded in both scope and depth post-Industrial Revolution, its potential utility in intangible forms began to surpass tangible outcomes. This conceptualisation underscores the scope of the knowledge economy and its potential benefits.

The knowledge economy entails capitalising on and commercialising intangible intellectual capital and research outcomes for economic activities in today’s postmodern era. It relies on intellectual capital for both consumption and production, emphasising the utilisation of scientific discoveries and applied research. This phenomenon plays a significant role in the economies of highly developed nations. The knowledge economy explores the role of education and knowledge, often referred to as ‘human capital’, as a valuable asset or business product. It can be traded and exported, generating profits for individuals, businesses, and the overall economy.

The knowledge economy arises from the convergence of private entrepreneurship, academia, and government-sponsored research. Software development, data sciences, artificial intelligence, biotechnology, nanotechnology, education, healthcare, finance, legal services, accounting, auditing, pharmaceutical research, intellectual property licensing, e-learning platforms, consultation services, digital marketing, and ICT are some of the common manifestations of the knowledge economy.

These knowledge-centric industries significantly contribute to the economies of most highly developed nations. Also, the knowledge economy is the very cause and manifestation of their distinguished status in the world. The fate of the countries would therefore be determined by how far they produce and capitalise on the knowledge.

Published in The Express Tribune, February 25^th, 2024.

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