By Khaled Islaih

New technologies are changing the way we think, live and work. In the new world, growth opportunities are created by using knowledge and technology. A knowledge based economy refers to the capacity and the capability to create new ideas, thoughts, processes and products and translate these into economic value and wealth. The new economy is about abundance with creativity and brainpower as key resources. Accordingly, resources are unlimited and usually increase with sharing and application. In contrast, traditional economics is about scarcity and limited physical resources.¹

The fundamental concept of a knowledge economy is about the recognition of human beings as the central entity in our universe. In old economic theories and models, humans were seen as a source of routine labor and standardized skills only. In knowledge theory, people were seen as a source of everything because what we buy, sell and do is a pure knowledge.² Knowledge economists believe that our new knowledge-based world represents a new chapter in human history that requires new mind frames, new daily routines, new technologies, new organization styles and new strategies.

In knowledge-based economies, firms utilize global networks to market products and services and access intellectual capital. Capital assets are replaced with knowledge and human capabilities. Similarly, large industrial firms are replaced with entrepreneurial knowledge-based firms. The success of enterprises is determined by the price of the entire firm rather than its level of profits. For sources of innovation, old research methods disappeared and new ones have emerged such as systematic innovation and knowledge management. Distinctive capabilities, speed, and differentiation strategies have come forth as drivers of competitive advantage instead of traditional drivers that prevailed in the old industrial economy such as access to raw material, cheap labor and cost reductions through economies of scale. In short, the dynamics of a knowledge-based economy implies a far reaching transformation in our life and work organization. More precisely, it turns the life cycles for businesses, jobs and products short and periodic.³

The new economy has drastic implications on the workplace dynamics. More precisely, the new economy exposes workers to new opportunities and threats. For example, the new business model is focused on people and knowledge rather than control-and-command style that dominated old business environments. Therefore, a new leadership style has focused on employee empowerment and self-leadership. In addition, relations between management and employees are organized on the basis of cooperation and teamwork. Traditionally, relationships among mangers and workers were confrontational due to conflicting interests on both sides. Instead of degrees and standard skills, job requirements in the knowledge economy are continuous learning, creativity, multi-skills and flexibility.

The work in a knowledge economy is a result-oriented activity; therefore, rigid work hours and specific location are less important in today’s workplace. Knowledge workers enjoy unprecedented levels of flexibility which enhances their work / life experiences. As for risks, traditional employment stability doesn’t belong to a knowledge economy. However, empowered workers have confidence in the quality of their knowledge and the diversity of their skills. In addition, their entrepreneurship skills and attitudes drive them to seek new work opportunities and market their knowledge and skills to local and global employers.

For workers, the challenge is to seize opportunities and avoid threats. Knowledge dynamics entails creative career decisions. It is part of our responsibilities as career professionals in the era of a knowledge economy to help our clients make these decisions. It is also our responsibility to help our clients understand the dynamics of the Canadian knowledge-based economy so they can upgrade their visions, priorities, interests, attitudes, skills, professional development strategies and job search techniques. Our clients must understand that their professional survival and success depend to a large extent on the quality and diversity of their knowledge and skills. All in all, we need to help our clients to focus on building their intellectual and human capital which is the most important factor of production in this age of creativity and innovation.⁴

Khaled Islaih, a New Canadian, resides in Mississauga and works as a Google web analyst for Arabic and English (US) sites. Khaled recently completed a study program focused on career development in the age of globalization. He is a regular contributor on newcomers’ settlement and employment facilitation issues. He wrote for the Canadian Newcomer Magazine and Contact Point Bulletin and participated in federal and provincial consultations on new settlement and language training strategies for newcomers. Khaled holds a master degree in economics with extensive experience in international development with the United Nations in the Middle East. He can be reached at kislaih@yahoo.com and www.khaledislaih.com.

References

¹See Knowledge Economy at Wikipedia Encyclopedia at http://en.wikipedia.org/wiki/Knowledge_economy
²Thomas A. Stewart, the Wealth of Knowledge: Intellectual Capital and the Twenty-First Century Organization, Doubleday, 2001.
³See a comparison of knowledge economy with the old industrial economy at this link: www.1000ventures.com/business_guide/crosscuttings/new_economy_transition.html
⁴Thomas A. Stewart, the Wealth of Knowledge: Intellectual Capital and the Twenty-First Century Organization, Doubleday, 2001.