South Africa, Gauteng, South Africa
The emergence of economies based on the production, distribution, use of knowledge and information was charted by the OECD (1996) in the report "The Knowledge Economy". Economies are more and more becoming reliant upon an effective gathering and utilization of knowledge and the creation and sharing of knowledge is rapid in the new economy. OECD suggests that innovation has changed from a linear model to a non linear and more complex relationship-based model. Discovery and innovation are no longer a process of fixed linear sequence of phases but is the result of numerous actions of many players. The promise of the knowledge economy has attracted the interest of national governments both in advanced industries and developing economies. Innovation intensive industries such as biotechnology, ICTs and super -semiconductors are the foundations of the new economy.
The knowledge based economy is also associated with software production, multi-media and other products based on intellectual capital. In the KBE context the significance of knowledge transfer, knowledge management, organizational learning and intellectual capital increase immeasurably. Building networks, promoting lifelong learning, identifying gaps, and promoting investment in knowledge-based enterprises become essential preconditions for establishing the business model in the new economy.
