Editing Knowledge economy (section)

==Concepts==

A key concept of the knowledge economy is that knowledge and education (often referred to as "human capital") can be treated as one of the following two:

* A business product, as educational and innovative intellectual products and services can be exported for a high value return.
* A productive asset
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It can be defined as 

''' "        The concept that supports creation of knowledge by organizational employees and helps and encourages them to transfer and better utilize their knowledge that is in line with company/organization goals  "'''
                   

The initial foundation for the Knowledge Economy was first introduced in 1966 in the book ''The Effective Executive'' by Peter Drucker. In this book, Drucker described the difference between the manual worker (page 2) and the [[knowledge worker]]. The manual worker, according to him, works with his hands and produces goods or services. In contrast, a knowledge worker (page 3) works with his or her head not hands, and produces ideas, knowledge, and information. 

The key problem in the [[formalization]] and [[Scientific modelling|modeling]] of knowledge economy, is a vague definition of ''[[knowledge]]'', which is a rather relative concept. For example, it is not proper to consider ''[[information society]]'' as interchangeable with ''knowledge society''. ''[[Information]]'' is usually not equivalent to ''knowledge''. Their use, as well,  depends on individual and group ''[[preferences]]'' (see the cognitive IPK model) - which are "economy-dependent".<ref>Terry Flew (2008), ''New Media'': An Introduction</ref>