Employability in the Knowledge Economy Essay Example | Topics and Well Written Essays - 2000 words

Employability in the Knowledge Economy - Essay Example Besides being pervasive, its central features of manipulation, storage, and transmission of large amounts of data at low cost, has made the IT revolution to influence every element of the economy as well as business chain. From its significant impact on both goods and services to R&D, production, marketing, distribution, and customer management, the overall knowledge application of knowledge to all facets of economy has been greatly simplified; and with this the knowledge intensity of economic activities has amplified. Besides this, globalization has increased with global competition, removal of trade barriers, FDIs, easy transfers of technology and capital, and network oriented economic activities. The concept of knowledge economy does not merely revolve high technology or generation of new knowledge, in fact it centers on the exploitation or effective use of all type of knowledge for the creation of wealth (Dahlman, n.d.). The nature of knowledge economy has been explained in terms of the significant role of knowledge as a factor of production and how it impacts on learning, skills, and innovation in the business organization. With the help of information and communication technologies, knowledge is increasingly becoming systemized which is leading toward information diffusion. This in turn is stressing for the possession of knowledge-based skills by human resource. Learning is in focus for both people and business organizations. (Houghton & Sheehan, 1999) For the purpose of employability, business leaders constantly advise people to acquire the skills, knowledge, and capabilities that are required by employers in the increasingly knowledge-driven economy (CBI, 2001). Drucker (1993) suggests that production is no longer driven by natural resources, capital, or labor, but ‘innovation and productivity’ – the major applications of knowledge. Since technological