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Placing Knowledge Management within SA DST Plan 2008-2018: Innovation towards a Knowledge Based Economy Nolwazi Mbananga PhD Prepared for the ICICKM Conference.

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Presentation on theme: "Placing Knowledge Management within SA DST Plan 2008-2018: Innovation towards a Knowledge Based Economy Nolwazi Mbananga PhD Prepared for the ICICKM Conference."— Presentation transcript:

1 Placing Knowledge Management within SA DST Plan 2008-2018: Innovation towards a Knowledge Based Economy Nolwazi Mbananga PhD Prepared for the ICICKM Conference Stellenbosch University Cape Town South Africa October 2007

2 BACKGROUND The emergence of economies based on the production, distribution, use of knowledge and information was charted by the OECD (1996) in the report “The Knowledge Economy” Economies are more and more becoming reliant upon effective gathering and utilization of knowledge and the creation and sharing of knowledge are rapid in the new economy. OECD suggests that innovation has changed from a linear model to a non linear and more complex relationship-based model. Discovery and innovation are no longer a process of fixed linear sequence of phases but are the result of numerous actions of many players. The promise of the knowledge economy has attracted the interest of national governments both in advanced industries and developing economies. Innovation intensive industries such as biotechnology and super –semiconductors are the foundations of the new economy. Also the knowledge based economy is associated with software production, multi- media and other products based on intellectual capital.

3 BACKGROUND CONT. In the KBE context the significance of knowledge transfer, knowledge management, organizational learning and intellectual capital increase immeasurably. Building networks, promoting lifelong learning, identifying gaps, and promoting investment in knowledge – based enterprises become essential preconditions for establishing the business model in the new economy. For most countries the emphasis is on investing in Information and Communication Technology as the infrastructure of the knowledge economy. While this approach is not wrong but it is not adequate to answer the following questions: * Is it a good move to emphasize investment in ICTs in KBE and neglect the need for organizational transformation which encourages creation, use and sharing of knowledge? * Is it safe to promote ICT investment and pay little attention to social and organizational restructuring required to deliver the benefits of the knowledge economy? This presentation will attempt to respond to these questions within the South African DST Plan and advocates for Knowledge Management as one of the key answers to the questions raised

4 Characteristics of Knowledge Based Economy ( by OECD) The knowledge economy is distinguished by the following: Diffusion of knowledge Multiple networks Creation of opportunities for oragnisational learning Greater Collaborations Gathering and Utilisation of Information an knowledge Sharing of knowledge Development of a strategic know how All these determine the socio-economic positions of industry, business organizations and firms.

5 The Concerns of the OECD The OECD is concerned with the institutions and processes for: Knowledge production – research and creation of new knowledge Knowledge transmission- education, training and development of people Knowledge transfer – diffusion of knowledge and innovation

6 Distinction between Knowledge Based Economy and the New Economy In the report “Towards Knowledge-Based Economies in APEC (2000) the APEC Economic Committee defines KBE in the following way: All elements as defined by OECD Not simply a thriving information economy that is separated from a stagnant old economy In KBE all sectors must be knowledge intensive and not only high technology sectors

7 Distinction between Knowledge Based Economy and the New Economy Cont. Knowledge needed in KBE society is wider than technological knowledge It includes : cultural, social and managerial knowledge The knowledge possessed by the organization is more than the information in the files. This knowledge includes: –culture, – process of interaction between people and organization, –knowledge about the contacts –processes of gaining information from outside The organizations’ knowledge is about its capability in integrating information with expertise to take action (This is KM)

8 The new Economy The new economy is an economic paradigm shift; combination of: Old and Knowledge Based Economy = New Economy It possesses combination of structural policies, networked info and communication technologies This mix increases the value of information available to: –individuals, industry, firms, government and markets – each of these act more efficiently, raising the return to knowledge skills The result of this paradigm shift and transformation is overall productivity and economic well being The technology part of the new economy is key driver of productivity growth However, it is the transformation of economic activity in response to forces of technology that generates the greatest gain (KM is key in this)

9 Knowledge Management is Key to KBE Knowledge Management is key to competitive advantage Knowledge transfer, knowledge sharing, use and protection will influence and be influenced by the industrial context of KBE Knowledge –based business utilizes knowledge management methods Appropriability regime : patents, trade secrets and copyright are effectively managed in KBE Today’s competitive environment favours organizations that protect knowledge assets (KM) Firms that build, buy, combine, recombine, deploy and redeploy knowledge assets utilize KM methods. Clear that KM has an important role to play in KBE and the NE

10 Barriers to Knowledge Based Economy (KBE) DST PLAN National System Innovation (NSI) Assessment reflected following barriers to KBE –Marginal economic Impact –Limited actions geared towards KBE –Limited Knowledge Workers ( quantity and quality) The South African Department of Science and Technology (SA DST) released a 10 year Plan Estimated Budget 28 Billion Rands The aim of this plan is:

11 Barriers to Knowledge Based Economy (KBE) Cont. –Make a significant contribution in transforming the economy to K –B- Economy –Create an environment conducive to innovation –Expand the platform for human capital –Expand the platform for knowledge development Objective of the Plan is: –Build on the NSI and support the transformation to KBE –Build on NSI to: >fight crime > deliver vaccines > provide new and sustainable energy solutions > resistant crops form drought and disease > new lightweight and intelligent material > manufacturing

12 Knowledge Based Economy (KBE) Prerequisites are four Pillars: ( by World Bank) –innovation –education –economic –institutional regime –information infrastructure

13 Grand Challenges of the Plan Aggressive programmes of focused R& D Farmer to Pharma Space Science and Technology Energy Security Science and Technology responding to Global Changes

14 Gaps in the Plan Common / National Vision of KBE Lack of a Coordinated National Policy for KBE No Mention of Knowledge Management No Mention of Informatics No mention of New Laws for the KBE No mention of the New Economy (NE) (bridging the Gap between Old and KBE = NE) No mention of an Information Society/Knowledge Society Broad statement of Silo approach in Knowledge Creation and a coordination plan thereof Academic Institutions need to fill in these Gaps Focusing on KM is a starting point

15 Proposed Additional Pillars for KBE and NE

16 A Model of a Knowledge Society

17 Knowledge Management as a Concept in South Africa New concept in some Public and Academic Sectors Few Private Sector organizations understand and practice KM DPS initiated a National Policy Frame work for government Lack of Capacity to develop and Implement the plan at national local levels of government system Poor understanding of KM Value No Legal framework for KM Few organizations that can support KM in the country Few universities focusing on KM education

18 Placing KM within DST Plan : Role of Academic Institutions Universities as knowledge Creation Centres must promote and Practice KM Research Institutions must promote and Practice KM Academic institutions must use KM tools and techniques to support DST Plan Academic Institutions and other related organization must collaborate Sharing and Transfer of Knowledge must increase Formal KM Networks for COPs and COIs must be established cris-crossing all academic institutions Focused Courses on KM must be developed Research and Development on IKME Involvement of the Society in KBE is the duty of Universities and other Institutions Creating awareness of KM, KBE NE and Knowledge Society Changing Metrics for research output leading to open access Changing Reward Systems for those that promote knowledge sharing and research collaborations

19 South African National Centre for Informatics Knowledge Management and Knowledge Economy: Contribution to the DST Plan Coordinate Information and Knowledge at National Level Developing Capacity in IKME Develop National Knowledge Reviews: SA National Knowledge Bank Assist Organisations with KM strategy Development and Implementation Assist in National Intellectual Capital Management Assist in e-Research Grid Development Create Awareness on Knowledge Society Create Awareness on KBE and NE Place KM at the Centre of the DST Plan See more :

20 Conclusion LASTLY: Today from this conference we must form a Round Table as Business, Higher Education, Research Organisations, Public and Government (Round Table : BEROPOG ROUND TABLE 2007 ) that is looking at: Structural, policy issues relating to the countries understanding of the nature of knowledge, Learning, knowledge management, knowledge society in a SA KBE context. The centre will facilitate the rest, Please those people and organization interested in this round table must visit to


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