Knowledge Based Economy Research Paper (kbe)

Put Your Thinking Caps on Grand Rapids About 63% of the United States believes that right now, the economy is in a downward spiral. Half of our nation believes that our nation’s economy is in the wrong direction, when in reality it is actually in a good one. Could our people really be this unintelligent that only 37% of the people know how well we are actually doing (Ehrenreich)? Knowledge is power, knowledge is money, and knowledge is information, therefore no knowledge means you haven no power, no money, and that you’re stupid. With that said, it would seem that each of the United State’s states would have caught up with this wonderful economy. Sadly this is not the case, as Grand Rapids and other states seem to not be able to grasp this concept. Even though knowledge spreads so well it spreads better than butter on toast it would seem that Grand Rapids isn’t able to even put butter on its toast, none the less spread it. With that problem in mind, it’s time to educate and share what a knowledge based economy is, how it works, and last how beneficial it would be to Grand Rapids compared to its current economy. To start off it is important for one to realize what a knowledge-based economy is. A knowledge-based economy by “Global Trends 2005” Standards is an economy that uses driving innovation, which is made of knowledge and ideas that as a result, make the economy grow (Dow 1). However, a more broad but accurate definition is provided by the Organization for Economic Co-operation and Development which states that a economy that takes the knowledge it has, and produces, distributes and finally teaches others how to use. It is equally important though that a realization between technology and knowledge occurs so that it is an economic growth (Paris 9). To put things in perspective on how things would really happen, since there is really nothing that goes according to plan. A knowledge economy would have, produce, and distribute knowledge to other states or nations, as well as having more beneficial jobs that require more knowledge, leaning away from manual labor, or “Would you like that super sized?”

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type of jobs. With leaning away from those jobs, new jobs would be created form the vast knowledge, or even if the jobs wouldn’t be there, the fact that we have this knowledge would create new schools and universities so that we can spread this knowledge. With that spreading, entrepreneurs would be more prone to start to advance in Grand Rapids, creating the jobs that we would be teaching others how to do. That would be the start of a knowledge based economy. In the light of Grand Rapids it is easy to see that right now Grand Rapids is in a state of disarray. Mayor George Heartwell is pushing Grand Rapids to become a knowledge-based economy, and he strongly predicts that we will emerge as one. For this reason the Mayor plans to use his power to abate taxation as a first step into the transition in becoming a knowledge-based economy (Gwozdz NP). Furthermore Grand Rapids has received an official notice by the United Nations, designating Grand Rapids a Center for Expertise in Education for sustainability (Hargar 1). Furthermore, Grand Rapids today, finds itself lacking jobs in the knowledge industry making it difficult for Grand Rapids to acquire and participate in a knowledge type industry (Rudolph 1). Also, with the arrival of a Michigan State University Medical School, and the expansion of research institutes, the life science field seems to be booming in Grand Rapids (“Business” 3). With Grand Rapids replacing the manufacturing jobs with healthcare service and retailing jobs, that aren’t economically beneficial, we will only be recycling the money in Grand Rapids and not gaining any revenue from the world. A new focus needs to occur in Grand Rapids, and that focus needs to be put on the new economy of the United States, and not the economy that used to be. Also, with Grand Rapids high school dropout rate nearing the 50% mark it is very important for us to re-establish a focus on education. Employers in the knowledge-based economy are searching for diverse and accepting communities that offer cultural services and have educated employees so that the employer is appreciated in the community. With only 13.6

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percent of Grand Rapids earnings from knowledge-based jobs, it doesn’t look like they’re looking at us (Rudolph 1). Nevertheless there are solutions and things to be done so that a knowledge economy may be created in Grand Rapids. The first thing that needs to happen is make kindergarten through twelve grade be up to par with the knowledge based economy Grand Rapids wants. Next the government needs to set up some type of meeting, or congress with schools, universities and businesses so that everyone can be on the same page. Investing in higher education is needed, and so is having living areas where people will want to live in (Gilmartin NP). All these investments will bring to Grand Rapids citizens that have the skills and will to act in the knowledge economy (Rodgers NP). In addition both globalization and technological change will stop having an effect on Grand Rapids. No longer would workers be laid off because of not being able to technologically do something. Similarly with the more skilled workers having knowledge jobs, there will not be much competition with external factors (Paris 15). Additionally there are two more effects that Grand Rapids will have to keep its eye on is the constant adapting of management, organization, and the teaching of new skills so that Grand Rapids can accommodate technologies to be (Paris 14). Secondly, a science system will need to created and managed so that the transfer, production, and transmission of knowledge can be properly up to date and ahead of the competitors (Paris 28). In a nutshell, a science system is the maker of new knowledge (Paris 28). This is essential for a knowledge economy for it has all the right elements for a great one. Knowledge production is the development and distribution of new knowledge. Knowledge transmission is the educating and developing of the citizens. Lastly, knowledge transfer is the circulation of knowledge, and adding many different inputs to problem solving (Paris 21).

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Consequently because of all of this intellectual property also plays a big part in a knowledge-based economy. Intellectual property is basically a copy right on a certain phrase or idea. This can lead to new jobs and innovations for everyone, which would bring a good boost in the economy. This is also a key part in the U.S. for 50% of the U.S. exports rely on intellectual property. The protection of intellectual property is equally important as its creation, for by protecting it, the standard of living also increases. Greater trade comes with intellectual property rights also, which once again increases the growth of the economy (Field JR NP). On the contrary there is one solution that can not only take away most of the minuses but it also keeps the plus. The solution is known as the lean six sigma. A six sigma is taking statistics and other information and using it to measure and increase the performance, systems, and overall output/profit, by finding and preventing defects that have to do with the manufacturing and services that have to do with the processes, so that it can anticipate and exceed expectations (Tonner NP). Now the difference between the regular six sigma and a lean six sigma is the fact that the lean six sigma adds speed to the equation. Discipline is already needed in a knowledge economy, and can only benefit a lean six sigma, making a faster economy. By improving the overall speed and flow of processes in a knowledge based economy, the economic growth would be substantial. The only problem is making sure that with the speed, quality can be hasty and unlikable, but with the lean six sigma, it is prevented. The key element into the lean six sigma is taking the core processes, that will be developed in the knowledge economy, and making those process work smoothly but fast (“Why” NP). The last part of the knowledge economy that is overlooked is each of the workers. Most of the problems and solutions to Grand Rapids economy focus on the economy itself but not the workers. With a knowledge-based economy it should be expected that most of the labor and manufacturing jobs will be replaced with other jobs requiring more skills. The difference

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between a non-production worker and a production worker is that the non-production worker does not engage in the output of physical knowledge, making non-production workers knowledge workers (Paris 10). So what will these workers need to know or do in the new economy? The workers will need to know the: know who, know what, and know why of their job. Know what and know why can be learned by reading books, while the know who is much harder to acquire. Know who is learned by meeting with clients, peers or even bosses can help for this (Paris 21). Since the knowledge worker needs to constantly adapt so will each of these skills (Paris 7). Not everyone is for the knowledge-based economy. Some people say that it does not benefit us at all and actually deletes the middle class worker. If people think the economy is bad though, they’re just stupid. If you’re too stupid to realize how great the economy is, you must be too dumb for the economy. GDP share which goes to people’s wages is at a fifty nine year low (Ehrenreich NP)! With the heart of a knowledge based economy being knowledge it is extremely difficult to (Paris 29). Also, it is hard to tell how many businesses it will impact, or how well of an impact it will be. Another big factor is that there is no actual formula in the creating of knowledge meaning there might be a big boom or a drought. With no actual way to price knowledge, there is no base to collect all the unique pieces (Paris 30). It is extremely important for the students of knowledge-based economies to focus on knowledge inputs. Basically knowledge inputs can be defined as: expenditures on research and development, employment of technical personnel, patents, and the balancing of international payments for technology (Paris 31). Out puts of knowledge can be measured easily by patents, so there is not too much worry there. Though not all patents are as significant as others, each of them represents applications that are practical for a specific idea or ideas (Paris 32).With the knowledge economy being one

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that is interactive on both a national international end it is even harder to do this but with the help of computers, diffusing the information that we have is easier (Paris 34). It is important to analyze two main flows of knowledge distribution, the first part is to distribute knowledge in public research institutions, universities, and industries; the second part is to distribute knowledge within suppliers and users in a market. This will make a flow of information. The key is to collect data at a citywide or national area, so that there can be an attempt to measure the flow which will allow us to get a good picture of how well a knowledge economy is doing (Paris 40). Also, there are a few outs on how to decipher how well the knowledge economy is doing. One way is to simply use surveys, though it is not the most reliable ways for not everyone is as knowledgeable of the economy. Using education on the other hand is a very practical way of doing this. By analyzing the impact on education the economy makes will tell how well knowledge is flowing. But to do all of this in a knowledge economy, Grand Rapids must be also a “learning society.” In order to do this we must pay attention to our national capital, and make sure that it is at a good enough quantity so that entrepreneurs are able to fully able to start their business (Hoffman NP). Knowledge is like a idiot speaking aloud, sometimes valuable ideas can be found but more often then not, it’s a pile of junk you have no idea what to do with, well a knowledge based economy is one of those valuable ideas, because it’s strong and has the ability to be prosperous. The only problem for Grand Rapids is if it is able to use the information it has, and compete with other nations. If we can it will increase the economic growth, make all the citizens smarter, and keep track of everything going on in the economy this is what a knowledge-based economy will bring to Grand Rapids. Also, Grand Rapids will need to constantly train and educate a majority of their citizens, and keep the creative “juices” flowing so that the Grand Rapids will “be as a

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city upon a hill,” just like in John Winthrop’s sermon to the pilgrims. God bless the United States of America.

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