KNOWLEDGE BASE ECONOMY

The knowledge being central for business agility and innovation is a multifaceted phenomenon. An economy of knowledge focused on the production and management of knowledge in the frame of economic constraints, or to a knowledge-based economy. In the second meaning, more frequently used, it refers to the use of knowledge technologies such as knowledge engineering and knowledge management to produce economic benefits which has to be considered from various perspectives observers describe today's global economy as one in transition to a knowledge economy, as an extension of an information society. The transition requires that the rules and practices that determined success in the industrial economy need rewriting in an interconnected, globalize economy where knowledge resources such as know-how and expertise are as critical as other economic resources. According to analysts of the knowledge economy, these rules need to be rewritten at the levels of firms and industries in terms of knowledge management and at the level of public policy as knowledge policy or knowledge-related policy. In the other words knowledge base economy is the essence of the firms is its ability to create, transfer, assemble, integrate, and exploit knowledge asset. Knowledge assets underpin competence and competencies in turn underpin the firm’s product and services offering to the markets.