WEEK 1: IMPOTANCE OF A KNOWLEDGE ECONOMY
Knowledge capital is taking factors of production such as land, labour, and capital
because the need for knowledge is expanding exponentially.
Knowledge is creating new modes of perception, communication, and relationship.
One discovery gives rise to another.
Continuous innovation: knowledge is the best competitive advantage. Aspects in
business change all the time and things become obsolete almost over night.
Therefore, it’s important to have knowledge and be able to implement it throughout
Collaborative learning: encouraging employees to think and nurture new and
expansive ways to thinking as a group
Competitive advantage: no longer goes to those with the most resources, but to
those who have the most intellectual capital. They will prosper in the long run.
RATIONALE FOR DEVELOPING LEARNING ORGANIZATIONS:
Leaning organizations: companies that are based off their intellectual capital
(Microsoft) and are what create the “knowledge economy”
Old methods that stifle creativity have to give way to new methods that allow
creativity and freethinking.
Reasons to be a learning organization:
1) Generate renewable resources – when people learn, they find ways to do
things without orders. Learning, once underway, keeps growing.
2) Create new knowledge and values – the end result is more profitable than the
raw material (lemon to lemonade – but you must know how to make
3) Foster adaptability and change – make changes when they are necessary
4) Create new niches – find a sector in the market that no one else is occupying
and fill it (take a chance)
5) Foster human growth and development – allow people to work to their