One Knowledge Base or Many Knowledge Pools?

It is increasingly realized that knowledge is the most important resource and that learning is the most important process in the economy. Sometimes this is expressed by coining the current era as characterised by a ‘knowledge based economy’. But this concept might be misleading by indicating that there is one common knowledge base on which economic activities can be built. In this paper we argue that it is more appropriate to see the economy as connecting to different ‘pools of knowledge’. The argument is built upon a conceptual framework where we make distinctions between private/public, local/global, individual/collective and tacit/codified knowledge. The purpose is both ‘academic’ and practical. Our analysis demonstrates the limits of a narrowly economic perspective on knowledge and we show that these distinctions have important implications both for innovation policy and for management of innovation.Knowledge, economic development

Knowledge Management in the Learning Economy

The purpose of this paper is to show why to build ‘learning organisations’ must be a central element of knowledge management. The paper argues that the wide use of information technology has a contradictory impact on knowledge management. On the one hand it extends the potential for codifying knowledge. On the other hand it makes tacit knowledge scarcer and it contributes to the formation of ‘a learning economy’. The argument is supported by an empirical analysis of survey data from Denmark showing that firms that introduce several organisational practices, assumed to characterise the learning organisation, are more innovative than the average firm. The paper contributes to the empirical foundation for the argument that learning organisations stimulate innovation and competence building and it makes an original conceptual contribution of practical relevance by linking knowledge management to HRM and innovation management.Knowledge management, learning economy, interactive learning, organisational change

The University in the Learning Economy

In all parts of the world, universities are exposed to a growing pressure to change. This is caused by the emergence of new relationship between the economic dynamics and the production of knowledge as well as by policy and administrative initiatives finding their rationale in interpretations of these changes. In this paper an attempt is made to specify some of the new challenges, and suggest appropriate responses. Under the heading ‘the learning economy’ changes in the context of universities are identified. One important conclusion is that traditional modes of organisation, characterised by sharp and rigid borders between disciplines and isolation from the society at large are being challenged and alternatives have to be developed. Another conclusion is that strategies of alliance and networking have become a key factor behind the success of universities. A third conclusion is that the universities’ most significant contribution to society and the economy will remain welleducated graduates with critical minds and good learning skills.Production of knowledge, education, networks

The Social Dimension of the Learning Economy

This paper is a slightly revised version of Bengt-Åke Lundvall's Inaugural Lecture, the 10th of November at Department for Business Studies, Aalborg University. The general message is that the growing frequency of so-called paradoxes in economic theory and of unsolved socioeconomic problems reflects that neither economic theory nor policy has been adapted to the fact that we have entered a new phase: the 'Learning Economy'. It is shown that in the learning economy the capacity to learn increasingly determines the relative position of individuals, firms and national systems. The growing polarisation in the OECD-labour markets is explained by the increasing importance of learning and the acceleration in the rate of change. Finally, it is argued that the learning economy will not be sustainable if these tendencies are not countered by a New New Deal which puts the focus on the distribution of capabilities to learn

The Danish Model and the Globalizing Learning Economy: Lessons for Developing Countries

Although Denmark shares with the other four Nordic countries certain attributes, such as pragmatic protestant religion, small and homogenous population, strong social democratic parties and ambitious welfare states, it also has its own characteristics. High degree of specialization in the so-called low-tech sectors, combined with high mobility and income security in labour markets (flexicurity), contributes to making the Danish system unique in the world. Denmark has experienced some stagnation in its growth over the last decade but still ranks among the top ten in the world in terms of GNP per capita, registered unemployment is less than 2 per cent (as of June 2008) while the inflation rate has remained moderate. These goals for economic policy have been realized in an environment with a high degree of income equality. In this paper we use the concepts .innovation system., .the learning economy. and .learning modes. to analyse the evolution of the Danish model and what can be learnt from it.economic development, welfare state, social cohesion, innovation

The Learning Organisation and National Systems of Competence Building and Innovation

This paper is based on a hypothesis that we have entered a specific phase of economic development, which we refer to as the 'learning economy', where knowledge and learning have become more important than in any earlier historical period. In this new context the learning capability of firms located in the domestic economy becomes a major concern for national governments and, at the same time, the national infrastructure supporting knowledge creation, diffusion and use becomes a concern for management and employees. To get the two to match and support each other becomes a prerequisite for economic success for firms as well as for the national economy. One of the main objectives of this paper is to demonstrate that societal institutions, which may exist at the national or regional levels, shape the types of organisational learning predominating at the level of the firm. The paper develops the concept of a 'national system of competence building and innovation' by linking national specificities in the formation of skills and labour market dynamics to the micro-level processes of knowledge creation and learning within and between firms. It uses the examples of Japan, Denmark and the high-technology clusters in the US and UK to illustrate the logic of institutionalised variation in patterns of learning and innovation. The paper argues that tacit knowledge, which is difficult to create and transfer in the absence of social interaction and labour mobility, constitutes a most important source of learning and sustainable competitive advantage. Learning builds on trust and social capital. Institutions that are able to imbue these elements into firms and markets encourage interactive learning and are more likely to produce strong innovative capabilities.learning organisations; learning economy; knowledge creation; national innovation systems; institutions; tacit knowledge, competence building

China's Innovation System and the Move Toward Harmonious Growth and Endogenous Innovation

Observers around the world are impressed by the rapid growth of China’s economy. While outside observers tend to focus on the success story of unprecedented growth policy documents and recent domestic debates in China have pointed to the need for a shift in the growth trajectory with stronger emphasis on ‘endogenous innovation’ and ‘harmonious development’. This paper attempts to capture the current characteristics of China’s production and innovation system; how they were shaped by history and what major challenges they raise for the future. On the basis of the analysis the authors propose that it is possible to link together the two key concepts ‘endogenous innovation’ and ‘harmonious development’ by focusing innovation and development efforts in China on domestic needs, including social needs, rather than a one-sided focus on export-promotion and commodity production.China; economic growth; R&D; innovation systems

Innovation, Learning Organizations and Industrial Relations

Innovation may be seen as a process of knowledge creation and the speed and direction of knowledge creation reflects the organizational set-up of the firm as well as its investments in R&D and training. Establishing ‘a learning organization’ where horizontal interaction and communication inside and across the borders of the firm is a major factor promoting knowledge creation in the context of a learning economy. An important issue is to what extent direct and indirect participation of employees in shaping the new form of organization is critical for its realization. On the basis of a unique data set covering 2000 Danish private firms it is demonstrated that firms combining several of the organizational traits of the learning organization are much more prone to introduce new products than the others. It is also demonstrated that such firms have involved employees in different forms of direct and indirect participation much more frequently than the rest. As more sectors become exposed to the need to engage in incremental product and service innovation the economic potential of diffusing good practices in terms of organization and participation is growing and needs to be reflected in firm strategies and public policies aiming at promoting innovation and knowledge creation.Innovation, knowledge creation, learning economy

Information Technology in The Learning Economy -Challenges for Developing Countries

This paper inquires how the concept of the "learning economy" can be applied to the requirements of developing countries. The main purpose is to develop an analytical framework to better understand how learning and capability formation can foster industrial upgrading. Special emphasis is given to te spread of information technology (IT). We inquire under what conditions developing countries can use this set of generic technologies to improve their learning capabilities. We argue that information technology should not be regarded as a potential substitute for human skills and tacit knowledge. Instead, its main role should be to support the formation and use of tacit knowledge. In the paper we compare two stylised models of the learning economy, the Japanese versus the American model. The Japanese model is explicit in its promotion and exploitation of tacit knowledge, while the American model is driven by a permanent urge to reduce the importance of tacit knowledge and to transform it into information - that is into explicit, 4 well structured and codified knowledge. We show that each of these models has peculiar strengths and weaknesses. Developing countries need to develop their own hybrid forms of institutions that combine the advantages of both models in a way that is appropriate to their idiosyncratic needs and capabilities.information technology; learning; learning economy; knowledge; capabilities; networks; developing countries; economic development; industrial upgrading