In today’s rapidly globalizing world, using knowledge and innovation policies to deepen development has become a key factor in countries’ economic success, regardless of their level of development. This is the viewpoint presented in the book “Building Knowledge Economies: Advanced Strategies for Development”, which was launched by the World Bank Institute (WBI) and the World Bank’s Infoshop on November 15th, 2007 in Washington D.C. The book is based on the work of the WBI’s Knowledge for Development Program (K4D), which was launched in 1999.
Rakesh Nangia, Acting Vice President of the WBI, introduced and chaired the event. He stated that while knowledge has been widely recognized as a key pillar of economic growth in the developed world, developing countries are now also recognizing and using these policies to spur their own economic growth. Nangia concluded by introducing a brief clip of the book’s launch in Africa.
Jean-Eric Aubert, Lead Specialist at the WBI’s Knowledge for Development Program gave the keynote presentation. Aubert stated that dealing with knowledge and innovation related policy is at the heart of development strategy, regardless of a country’s level of development. While we have always known that knowledge and innovation promotes growth around the world, he said, today there is a dramatically changing global context (led by a number of technological revolutions) which makes this all the more evident. The report, he explained, is structured into three major parts. The first describes the theoretical framework behind the study, and how policies are implemented. The second part details the four pillars of the analytical framework: education and skills, Information and Communications Technology (ICT) infrastructure, innovation system, and enabling institutional environment. Finally, Aubert stated, there is a chapter which gives a brief strategic focus on certain country sets and groups. The report also contains a comprehensive benchmarking methodology containing a database that currently holds 128 countries and 80 variables.
Aubert explained that although the extreme importance of knowledge and innovation in economic growth is generally recognized in developed countries, developing countries face the challenge of prioritizing the knowledge economy despite an often difficult economic and institutional framework. Aubert stated that in terms of innovation in developing countries, it is necessary to think about what is new within the specific country or regional context, even if the idea is not innovative elsewhere. He cited China and India as the two major successes of our time, and that share a similar story: piloting a successful project for an initial agenda, scaling up to a critical mass of projects, and eventually moving into major policy reforms. Aubert concluded by summarizing a few key policy messages. He stressed the urgency of placing the knowledge economy at the heart of country development strategies. At the same time, the knowledge economy agenda cannot be disconnected from the other major policy agendas, and must be adapted to country specificities. Finally, he stated that there is a need to act ambitiously on the four policy pillars outlined in the book.
Aurbert’s presentation was followed by comments by Shahid Yusuf, Economic Advisor in the Development Economics Research Group at the World Bank. Yusuf stated that the book indicates that the concept of the knowledge economy has moved into the foreground of our thinking. He said he was struck by how many countries are seriously engaged in implementing reforms towards achieving a knowledge economy and see this as crucial to their economic development. Fifteen years ago, he explained, much of the discourse on development was focused on macro stability. Although this remains significant for some countries, it is no longer a worldwide concern. With widespread political stability and democratic regimes, lessening of trade barriers, improved business environment, and good policies becoming globalized, Yusuf stated that the future of growth depends on harnessing knowledge. This, he said, is why the book’s policy suggestions are so valuable. Yusuf mentioned that there were a few things he thought were missing from the book, including an acknowledgement that low income countries need to develop basic manufacturing capabilities before the can invest in the knowledge economy—a process which cannot be avoided. He mentioned that there is a need for less re-telling of success stories, and more detailing of the conditions that allowed for the success. Yusuf concluded by stating that the book provides an excellent synopsis on what has worked in the past, but should question whether these same policies are relevant for countries playing catch up, and whether they will be relevant under changing circumstances in the future.
In the question and answer session, audience members asked about the few governments that are not aligned with the concept of knowledge economy, how to put into practice policy recommendations that are often made retrospectively, and the role that leadership plays in promoting the knowledge economy.
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