The Knowledge Based Economy Essay Example | Topics and Well Written Essays - 250 words

The Knowledge Based Economy - Essay Example This will facilitate the transition of technological change into productivity gains that will ensure organizational changes and as such, raise flexibility (OECD, 1996). These changes shall be achieved through financial, information and competition changes. Using allocation, the government’s policy would be to upgrade the human capital. The policy would, for instance, provide a broad-based formal education. It will also handle creating incentives for organizations and people to take part in unceasing training and learning. Subsequently, through the policy, it will be easier for the government to match labor supply and demand by the skill requirements (OECD, 1996). Using distribution, the government’s policy would be to enhance knowledge diffusion. In this case, the policy will be geared towards supporting innovation so as to establish â€Å"diffusion-oriented† programs. The policy will lay out a clear framework for the collaborations and hence, promote the diffusi on of new technologies to various sectors in the economy. The policy will also be instrumental in facilitating the development of information infrastructures. All these approaches have both strengths and weaknesses. The use of all these policies will make it possible for the economy of a country to be knowledge-based. As such, it will benefit from all the advantages of a knowledge based economy. However, the policies require huge financial investments.  Using regulation, the government’s policy would be to promote organizational change.