Professor Murmann's Blog: Benefits of the Knwoledge Economy

Benefits of the Knwoledge Economy

Figure 1 from the ETH Strategy Report: Knowledge is the main engine of economic growth. A strong correlation can be observed between the Knowledge Economy Index (KEI) and GDP per capita. The KEI is calculated by the World Bank and is based on the four pillars of the Knowledge Economy framework: 1. An economic and institutional regime to provide incentives for the efficient use of existing and new knowledge and the flourishing of entrepreneurship; 2. An
educated and skilled population to create, share, and use knowledge well. Click on More to see a powerful picture.

3. An efficient innovation system of firms, research centers, universities, consultants, and other organizations to tap into the growing stock of global knowledge, assimilate and adapt it to local needs, and create new technology; and 4. Information and
communication technology to facilitate the effective creation, dissemination, and processing of information. The KEI is shown in a normalized and relative value (normalized on a scale of 0 to 10 relative to other countries in the comparison group; 10= best, 0=worst). GDP is given on a purchasing power parity basis divided by population.image