• Shenaj Hadzimustafa CEA
Keywords: knowledge economy, economic growth, economic development, knowledge, sustainability


Knowledge has become the major driving force of economic and social development all around the world.Coupled with globalization and accelerated by rapid distribution and transfer of knowledge by information and telecommunication technologies, this development impacts all countries and regions, public institutions, the corporate world, and the lives and prospects of individuals.The knowledge economy is based on the generation and adoption of new knowledge created by scientific research and technological advances; investments in education and research; adoption of best practices; and openness to social, economic, and cultural innovations. For advanced industrialized countries with high labor and infrastructure costs, the knowledge economy offers competitive advantages in high-technology product manufacture and efficient service sectors. For natural resource-based economies it offers improved technologies and higher-value added products with closer customer linkages, as well as a path for sustainable development. For developing countries, knowledge offers possibilities to short cut development phases, leapfrog technologies, and more quickly integrate into the global economy by becoming more attractive to international investors.The generation and conversion of knowledge into economic and social benefits requires good innovation systems, including highly qualified personnel and efficient technology transfer (TT) and venture capital (as a gen- erator of innovation). Higher levels of knowledge in a society tend to lead to higher levels of economic growth and consequently to higher levels of economic development.


Abel, Andrew B.; Bernanke, Ben S.;. (2001). Macroeconomics 4th ed. Addison Wesley Longman, Inc.

Alavi, M., & Leidner, D. (2001). Knowledge management and knowledge management systems: Conceptual foundations and research issues. MIS Quarterly 25 (1) , 107-136.

Aubert, Jean-Eric; Reiffers, Jean-Louis;. (2003). Knowledge Economies in the Middle East and North Africa, Toward New Development Strategies. Washington D.C.: The World Bank.

Brinkley, I. (2006). Defining the economy economy. London: The work foundation.

Chen, D. H., & Dahlman, C. J.(2005). The Knowledge Economy, the KAM Methodology and World Bank Operations. Washington D.C.: The World Bank.

Chen, D. H. (2006). Koreas as a Knowledge economy: Overview. Washington D.C.: IBRD/WB.Committee, A. (2008). Innovation Measurment: Tracking the state if Innovation in the American

economy. Washington D.C.: The Advisory Committee on Measuring Innovation.

Dahlman, C. J., & Aubert, J.-E. (2001). China and the Knowledge Economy:Seizing the 21st Century. Washington D.C.: IBRD/The World Bank.

Dahlman, C. J., Routti, J., & Yla-Antilla, P. (2007). Finland as a knowledge economy. Washington D.C.: The World Bank.

Dahlman, C., & Utz, A. (2005). India and the Knowledge Economy: Leveraging Strengths and Opportunities. Washington D.C.: IBRD/The World Bank.

Davenport, T., & Prusak, L. (1998). Working knowledge. Boston: Harvard Business School Press.

Dolfsma, W., & Soete, L. (2006). Understanding the Dynamics of a Knowledge Economy. Cheltenham UK: Edward Elgar Publishing, Inc.

Dti. (2003). Innovation report: Competing in the global economy: innovation challenge. London: Dti.

Fingar, P. (2006). Extreme Competition: Innovation and the Great 21st Century Business Reformation. Florida: Meghan-Kiffer Press.

Hargeaves, A. (2003). Teaching in the knowledge society. New York: Teachers College Press.

Houghton, John; Sheehan, Peter;. (2000). A primer on the Knowledge Economy. Melbourne: Centre for Strategic Economic Studies, Victoria University.

Inter - American Development Bank (2003). Sustainable Economic Growth: Strategy Document, Washington D.C.

Kahin, Brian; Foray, Dominique;. (2006). Advancing Knowledge and the Knowledge Economy. Cambridge: MIT Press.

Kaldor, N. (1957). A Model of Economic Growth. Economic Journal , 591-624.

Larsen, K., & Vincent-Lancrin, S. (2005). The impact of ICT on tertiary education: advances and promises. Advancing knowledge and knowledge economy. Washington D.C.: OECD.

Mahroum, S. (2008). Innovate Out of the Economic Downturn. Business week .

Markus, L. (2001). Toward a theory of knowledge reuse: Types of knowledge reuse situations and factors in reuse success. Journal of Management Information Systems 18(1) , 57-93.

Nonaka, I. (1994). A dynamic theory of organizational creation. Organization Science , 14-37.

Nonaka, I., & Nishiguchi, T. (2001). Knowledge emergence. Oxford: Oxford University Press.

Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create

the dynamics of innovation. Oxford: Oxford University Press.

OECD. (2003). The Sources of Economic growth in OECD countries. OECD.

Porter, M. (1996). What is strategy? Harvard Business Review , 74.

Potocnik, J. (2005, March 18). The importance of SMEs in the European Knowledge economy. Celje,Slovenia.

Rasheed, N. (2005, July 7). The impact of Knowledge management on SME's. Knowledge Board.

Romer, D. (2001). Advanced Macroeconomy. New York: McGraw-Hill/Irwin.

Rooney, D., Hearn, G., & Ninan, A. (2005). Handbook on the Knowledge Economy. Cheltenham, UK: Edward Elgar Publishing Limited.

Schleicher, A. (2006). The economics of knowledge: Why education is key for Europe's success. Lisbon:OECD.

Schwab, K. (2010), The Global Competitiveness Report 2010-2011. World Economic Forum

Smith, H., & Schurink, W. J. (2005). The interface between knowledge management and human resources:A qualitative study. SA Journal of Human Resource Management 3 (1) , 6-13.

Snowdown, Brian; Vane, Howard R. (2005). Modern Macroeconomics, It's origiins, development and current state. Massachusetts: Edward Elgar Publishing, Inc.

Soubbotina, T. P. (2004). Beyond Economic Growth,An Introduction to Sustainable development. Washington D.C.: The World Bank.

Stiglitz, J. E. (1999, January 27). Public Policy for a Knowledge Economy. London, UK: Department for Trade and Industry and Center for Economic Policy Research.

Suh, J., & Chen, D. H. (2006). Korea as a Knowledge Economy: Evolutionary Process and Lessons Learned. Washington D.C.: The World Bank.

Takeuchi, H., & Shibata, T. (2006). Japan, Moving Toward a More Advanced Knowledge Economy. Washington D.C.: The World Bank.

Thomson, A. A., & Strickland III, A. J. (1998). Staregic Management-Concepts and cases. Alabama: McGraw Hill.

Turban, E. (1992). Expert systems and applied artificial intelligence. New York: Macmillan.

WB. (2003). Lifelong Learning in the Global knowledge economy. Washington D.C.: IBRD/The World Bank.

WBI. (2007). Building Knowledge Economies. Washington, DC: IBRD/The World Bank.

Wickramasinghe, N. (2006). Encyclopedia of Knowledge Management: Knowledge Creation. Idea Group Inc.

World Economic Forum. (2010). The Lisbon Review 2010: Towards a More Competitive Europe?.Geneva

Zeng, D. Z., & Wang, S. (2007, May). China and the Knowledge Economy: Challenges and Opportunities.

WPS4223 . Washington D.C.: The World Bank.

Zimmerer, W. T., & Scarborough, M. N. (2002). Essential of Enterpreneurship and Small Business Management. New Jersey, USA: Prentice/Hall.