ZeInab Siahpoosh; Sayed Mohammad Bagher Najafi; Jamal Fathollahi; yosef mohamadifar
Abstract
1- IntroductionThe realization of a knowledge-based economy requires appropriate cultural prerequisites. According to Stiglitz (Stiglit, 1999(, one of the first and most important issues is to provide cultural prerequisites and realize the effective cultural factors in this regard . In fact, cultural ...
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1- IntroductionThe realization of a knowledge-based economy requires appropriate cultural prerequisites. According to Stiglitz (Stiglit, 1999(, one of the first and most important issues is to provide cultural prerequisites and realize the effective cultural factors in this regard . In fact, cultural factors are one of the most crucial factors and prerequisites for transforming the economy of Iran and Kermanshah province into a knowledge-based, dynamic, persistent, capable, and competitive economy in the country. Therefore, this study used an institutional theoretical framework to identify and prioritize cultural factors affecting the realization of a knowledge-based economy.2- Theoretical framework It is of high importance to have an appropriate institutional regime framework to facilitate interactions between different parts of the knowledge-based economy (Schiliro, 2012). The institutional regime consists of formal rules, informal (institutions) restrictions, and their executive characteristics (North,1996b). Informal institutions are the informal behavioral rules of society that are part of the culture.3- MethodologyThe most important cultural indicators affecting the realization of the knowledge economy were investigated and selected by referring to the previous literature and upstream documents and interviews with 14 experts in the field. Then, pairwise comparison questionnaires were completed by 20 experts, and indicators were extracted by Expert Choice. Finally, the indicators were prioritized by hierarchical analysis.4- Results & DiscussionAccording to the results of the study:Education as one of the most important elements of the knowledge-based economy accounts for the first priority (28%) among the top 10 indicators. Hence, it is necessary to have a skilled and educated workforce to provide efficiency, learning, dissemination, and application of knowledge, which leads to increased productivity of factors of production as well as economic growth and development (Chen & Dahlman, 2005). Among the components of education, primary education (56%) is the most important grade, whereas secondary education accounts for 18%, which indicates the major role of primary education in the knowledge-based economy. In fact, basic education strengthens the foundations of human capital by training the skilled and experienced workforce, resulting in the realization of a knowledge-based economy by creation a scientism institution and social capital.Rationality: To achieve development in the knowledge-based economy, it is necessary to refer to reason and thinking and strengthen the rational and scientific attitude of rationality in society, because the production of science and knowledge relies on thinking and a rational approach. This indicator (14%) accounts for the next priority after education in terms of impact on the realization of the knowledge-based economy in Kermanshah province. Among the dimensions of rationality indicator, the most important dimension is the position of science and knowledge (24%) and the most important component of the dimension is scientism (30%).3.Skill of Thinking skill: Development is an internal issue, a collective phenomenon, and an important goal that requires the highest degree of coordination and participation. In other words, there must be coordination and consistency in the thoughts and ideas for coordinating peoples' actions (Sariolghalam, 2007, p. 56). Therefore, harmonizing the thoughts leads to harmony in the actions of individuals, flourishes creativity and innovation, and ultimately enables the achievement of the knowledge-based model. This indicator (9.6%) accounts for the third priority.The fourth indicator is justice (8.6%) with judicial justice as the most important dimension of the justice indicator. Moreover, the most important component of the judicial justice dimension is the fair implementation of laws. Justice affects the realization of the knowledge-based economy in two ways: 1) by creation equal access for all to public facilities, in particular, educational and health facilities, and ultimately, the realization of human development, which is one of the main institutional contexts for achieving a knowledge-based economy, and 2) by establishing equal conditions for all in order to attend a fair competition.The ethics indicator (8.1%) accounts for the fifth priority, with the political dimension with the meritocracy component in the transfer of responsibilities as the most important dimension of the indicator. According to Williamson's four-level analytical framework, many of the ethical values affecting the realization of the knowledge-based economy, such as the emergence of informal institutions produce development at the first level. Informal institutions formed at the first level lead to the emergence of some rules at the second level. According to the rules of the second level, the proper management is accomplished at the society, and finally, the results obtained in the previous three levels lead to the realization of a knowledge-oriented society in the fourth level (Fathollahi et al., 2015).Subjective culture (7.5%) and social order (7.4%) (the sixth and seventh priorities) play a role in the realization of this new production model. The most important component of subjective culture is the attitude towards learning science. Moreover, the most important dimension of the order indicator is legality and the most important component of the legality dimension is the remark for private property.In addition, scientific independence (6.2%) and cultural interactions (6.2%) account for the same priority (the eighth and ninth priorities). However, the objective dimension of culture (4.6%) accounts for the last priority in terms of the effect on the realization of the knowledge-based economy so that mismatch rate of 2% also reflects consistency between the results.5- Conclusions In general, since culture, knowledge transfer, values, and other factors affecting behavior are defined from one generation to another through education and imitation, education by training skilled and capable people results in the development of rational attitude and changes in the attitude of people (North, 1990, p. 79). According to Max Weber, harmony in the attitude of individuals creates a kind of collective reason called rationality (Yeganeh & Labibi, 2011, p. 106). On the other hand, governing rationality in society leads to the establishment of social order and its stability.
Mohammad Mahdi Ahmadian Divkoti; HasanAli Aghajani; Meysam Shirkhodaei; Amir Mansour Tehranchian
Abstract
Extended abstract
1- Introduction
As stated by theoreticians, no factor can replace knowledge in the present-day economy; so that other production factors (such as labor and capital), which have been among the main contributing factors of development for decades, are also affected by such phenomenon. ...
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Extended abstract
1- Introduction
As stated by theoreticians, no factor can replace knowledge in the present-day economy; so that other production factors (such as labor and capital), which have been among the main contributing factors of development for decades, are also affected by such phenomenon. Accordingly, in the age of knowledge-based economics, many countries are seeking to develop their wealth creation through knowledge; thus, they seek to organize a mechanism in which knowledge is created based on the needs of society, which helps them pass through the path to maturity and evolution, and ultimately leads them to the wealth creation (Hasani, Rafiei & Bakhshiani, 2016).To measure the level of knowledge used in a country’s products, there are several indicators one of which is the economic complexity index (Pazham & Salimifar, 2016) proposed by Hidalgo and Hausmann (2009); to measure the complexity of the countries’ economy (Hidalgo & Hausmann, 2009). The economic complexity approach can be used as a benchmark for assessing the effectiveness of the countries’ national innovation systems. Many models have been introduced to assess and measure the success of innovation systems, but a more complex and more realistic approach to this measure can be demonstrated in the international arena. Thus, in this article; we first provided a very brief reference to the national innovation systems of the selected countries (including Japan, South Korea, Singapore, Malaysia, and Iran), then by introducing how to calculate economic complexity, opportunity gain and distance, we compared the comparative position of these countries while encountering economic complexity.
2- Theoretical Framework
Complex economies are economies bringing together a large amount of related knowledge in the form of large networks of people and produce a diverse range of knowledge-based products. In contrast, simple economies have a poor sponsorship and support of productive knowledge and produce less and simpler goods that require a smaller network of interactions (Hidalgo & Hausmann, 2009). For this reason, the design of the national innovation system is very important in order to provide an appropriate climate in which economic agents can innovate and create technology (Weng et al., 2012). Countries that have managed to bring together components in a product have accelerated the growth of innovation and, the economic growth, consequently whereas countries with a disparate national innovation system have failed to achieve such growth (Nasiriaghdam, Dehghan Tarzjani, Rezaei & Beik Mohamadlo, 2011). As a result, the national innovation system is a necessary, effective, and dynamic factor for the development of countries (Iqbal, Khan, Bashir, & Senin, 2015).
3- Methodology
To conduct the study, the data collection was done in two stages. In the first stage, using the documentary method and the search of relevant internal and external sources, books, scientific and research publications, theoretical foundations related to the innovation system of the selected countries were studied. In the next step, since one of the indicators of the success of innovation systems is the use of knowledge and innovation in the knowledge-based products production and export, the economic complexity index is used to compare the efficiency of these systems in the global arena. If we accept that the construction of a commodity requires a specific type and composition of applied knowledge, it is obvious that a country can produce a product which has access to this applied knowledge. From this simple principle, two useful tips for constructing the economic complexity index can be derived:
1- Countries with more applied knowledge will be able to produce a more diverse range of goods. In other words, the amount of applied knowledge accumulated in a country is expressed on the basis of the "diversity" of its products, or the number of distinctive goods it produces.
2- The production of goods that require a large amount of knowledge is possible only in a limited number of countries, in fact, the countries that have all the necessary applied knowledge. (Cheshomi & Malekalsadati, 2014).
In addition to calculating the economic complexity of countries, this approach can be used to calculate opportunities for countries to diversify exports, and the distance or ability to enter a specific product; these data and information about different countries in terms of economic complexity are accessible to everyone at Harvard Business Complex Atlas Site (visit http://atlas.cid.harvard.edu). Data on the economic complexity of selected countries in this research have also been extracted from this site.
4- Findings
Examining some of the indicators of the national system of innovation model in selected countries, such as the cooperation of industrial enterprises, the interaction of industry and university as well as; technology distribution and staff turnover, shows that selected countries other than Iran have taken effective measures to strengthen their national innovation system. According to the research findings, if we look at the situation of the "product space" of the selected countries over the past decades, we will notice a very delicate point, which is a significant shift taken place in the export situation of these countries over time; and have changed from export of products with low complexity (agricultural products, minerals, raw materials, etc.) towards highly complex products (single, industrial products); however, the product space for Iran was not so. In addition, by observing the export status of these selected countries from 2000 to 2016, it was observed that; over the years; the largest share of exports has been made in Japan, Korea, Singapore and Malaysia for the products belonging to the group of machinery, electronics and chemicals which are the most complicated. However for Iran; the opposite is true, and crude oil has the largest share in Iran's export, which, has a very low value in terms of complexity. On the other hand, Iran, has a higher possibility than the other countries in terms of obtaining the opportunity, while these opportunities are far away from the country’ reach, that is, the country's capabilities to achieve these opportunities must be strengthened. Concerning the points of interest for the selected countries, it is true that they have a lower rating in terms of opportunity, but these opportunities are closer to them. The next point is that for the selected countries, the high-tech products are closer in terms of distance; and because of the lack of adequate natural resources; or the implementation of rigorous policies in exploiting these resources, the raw materials, mineral resources and agriculture are far away. For Iran, the situation is a little different; raw materials, minerals, and crude oil, are closer for exploitation, and high-tech products are far from Iran in terms of distance although being less attractive for the benefit of the opportunity.
5- Conclusion
Economic complexity requires the policy makers to change attitudes in various fields, and the creation of synergy and coordination among all policies, so as to distance themselves from simple and linear causal relationships. They should also emphasize the promotion of the technological and innovative capabilities needed to sustain the country's sustainable development. This implies the need for a duplicate effort in the transition from a resource-based economy to a knowledge-based economy. It also requires the integration of the innovation policy into the package of the country's development policy, which should be pursued seriously by the central institutions in the public and private sectors. Changing the key variables of the economy is not achieved simply by changing price or encouraging the tax or establishing a law or establishing an organization or institution. It also requires special attention to the national system of innovation and the creation of coordination and synergy among all actors and institutions involved in this system. Of course, to accelerate the realization of economic complexity, the policies and experiences of the leading countries in the field of the national system of dynamic innovation can be used while taking into account the position, capacity, and potential of the country.
Abolfazl Shahabadi
Abstract
The Evaluation of Impacts of Knowledge-based Economy Factors on Total Factor Productivity Selected OIC Countries
Abolfazl Shahabadi
Assistant Professor, University of Bu-Ali Sina, Hamedan
Fatemeh Kimiaie
MA in Economics, University of Tehran
Mohammad Arbabafzali
MA in Economics, University of ...
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The Evaluation of Impacts of Knowledge-based Economy Factors on Total Factor Productivity Selected OIC Countries
Abolfazl Shahabadi
Assistant Professor, University of Bu-Ali Sina, Hamedan
Fatemeh Kimiaie
MA in Economics, University of Tehran
Mohammad Arbabafzali
MA in Economics, University of Tehran
Abstract
This Article evaluates the impacts of knowledge-based economy factors on total factor productivity selected OIC countries by using panel data approach and GLS method during 1996-2009. The results indicate that the ratio of accumulation of education costs to GDP in selected OIC countries; have a negative impact on TFP that is due to lack of demand-driven human capital. But the ratio of accumulation of domestic R&D capital stock to GDP (because of supply-driven internal R&D activities) and the ratio of accumulation of foreign R&D capital stock to GDP have a very small impact on TFP. But the ratio of ICT capital stock to GDP have the significant positive impact on TFP in selected OIC Countries.
Keywords: Total Factor Productivity, Research and Development, Human Capital, Knowledge Based Economy
JEL: C23, E23, O11, O31, O47
