GVCs that are in turn seen as drivers of globalization and enhanced participation in
global KBCE. If a country’s participation in GVCs is lower in particular sectors
than that of others, smaller or big, then that country’s participation in globalization,
and by implication in global KBCE, is also lower. Thus, participation in GVCs can
be used as a measure of individual participation in globalization and global KBCE.
4 Knowledge Resources in the European Union’s Lisbon
Strategy
‘Physicists gave engineers the electron and they created the IT revolution. Biologists gave
engineers the gene and together they will create the future’. - Susan Hockfield, MIT
President Emerita and Professor of Neuroscience
At the Lisbon Summit 2000 the European Union set herself the goal of transforming the EU by 2010 into ‘the most competitive and dynamic knowledge based
economy in the world capable of sustainable economic growth with more and better
jobs and greater social cohesion’. It is remarkable that at the dawn of the
twenty-first century, just 15 years ago, this declaration set the scenario-building for
knowledge-based economy converging on the common frontier of sustainable
future for the EU. One could also say that it set the scenario-building for
knowledge-based global economy where the less developed economies of the world
stand to benefit from trading with the EU. Knowledge-based economy is an
economy in which knowledge is the most important input factor, irrespective of the
challenging frontiers. In a knowledge-based economy, information has value in the
interaction with human capital. This includes local interactions that build up
enabling environments for people to use information to solve complex problems
and adapt to change. The European Council of March 2005 relaunched the Lisbon
strategy by refocusing on growth and employment in Europe. The main goal has
been to strengthen competitiveness by investing, above all, in knowledge, innovation and human capital, in order to raise the potential for economic growth.
Knowledge, accumulated through investment in R&D, innovation and education, is
a key driver for long-term growth. Policies aimed at increasing the investment in
knowledge and strengthening the innovation capacity of the EU economy are at the
heart of the Lisbon strategy for growth and employment (RICARDIS, p. 18).
In contrast to the conventional economic theory, the new economic theory for
the knowledge economy is developed in and for the knowledge era. It is especially
characterized by the law of increasing returns.
‘The economy is rapidly becoming a global marketplace characterized by fierce competition, increasing consumer demands and the need for value added products and services. The
only way for enterprises to survive in this Knowledge-based Economy is to differentiate
themselves by continuous innovation, in order to improve their processes, products, services, networks and reputation. Enterprises innovate in many different ways, ranging from
technological product innovation, based on new knowledge generated by in-house basic
research and via innovation by applied research, to marketing innovation, based on existing
144
G.L. Pandit
global KBCE. If a country’s participation in GVCs is lower in particular sectors
than that of others, smaller or big, then that country’s participation in globalization,
and by implication in global KBCE, is also lower. Thus, participation in GVCs can
be used as a measure of individual participation in globalization and global KBCE.
4 Knowledge Resources in the European Union’s Lisbon
Strategy
‘Physicists gave engineers the electron and they created the IT revolution. Biologists gave
engineers the gene and together they will create the future’. - Susan Hockfield, MIT
President Emerita and Professor of Neuroscience
At the Lisbon Summit 2000 the European Union set herself the goal of transforming the EU by 2010 into ‘the most competitive and dynamic knowledge based
economy in the world capable of sustainable economic growth with more and better
jobs and greater social cohesion’. It is remarkable that at the dawn of the
twenty-first century, just 15 years ago, this declaration set the scenario-building for
knowledge-based economy converging on the common frontier of sustainable
future for the EU. One could also say that it set the scenario-building for
knowledge-based global economy where the less developed economies of the world
stand to benefit from trading with the EU. Knowledge-based economy is an
economy in which knowledge is the most important input factor, irrespective of the
challenging frontiers. In a knowledge-based economy, information has value in the
interaction with human capital. This includes local interactions that build up
enabling environments for people to use information to solve complex problems
and adapt to change. The European Council of March 2005 relaunched the Lisbon
strategy by refocusing on growth and employment in Europe. The main goal has
been to strengthen competitiveness by investing, above all, in knowledge, innovation and human capital, in order to raise the potential for economic growth.
Knowledge, accumulated through investment in R&D, innovation and education, is
a key driver for long-term growth. Policies aimed at increasing the investment in
knowledge and strengthening the innovation capacity of the EU economy are at the
heart of the Lisbon strategy for growth and employment (RICARDIS, p. 18).
In contrast to the conventional economic theory, the new economic theory for
the knowledge economy is developed in and for the knowledge era. It is especially
characterized by the law of increasing returns.
‘The economy is rapidly becoming a global marketplace characterized by fierce competition, increasing consumer demands and the need for value added products and services. The
only way for enterprises to survive in this Knowledge-based Economy is to differentiate
themselves by continuous innovation, in order to improve their processes, products, services, networks and reputation. Enterprises innovate in many different ways, ranging from
technological product innovation, based on new knowledge generated by in-house basic
research and via innovation by applied research, to marketing innovation, based on existing
144
G.L. Pandit