Globalization: Knowledge-based economy in Europe

Résumé du document

It is a fact that today's European economy is strongly impacted by globalization. European firms have the opportunity to go to the global market. In order to be successful and to achieve a local and international development, those companies have to adapt and to reinvent their strategies. The challenge today is not anymore to have the largest plants, the higher number of employees, or the biggest cash flow. The global aim is to get the knowledge in order to optimize all those factors. By controlling the knowledge, firms are able to reduce their costs and to become more efficient and powerful. European authorities are aware of the importance of knowledge to achieve a global goal of growth and prosperity for all European stake holders. That's why the Lisbon Strategy has been decided in 2000. Its aim was to make the Europe the number one knowledge-based economy of the world by 2010. "Be Competitive through innovation" this is what Europe wants; its firms have to do that to compete in the global world. As it's possible to see in that investigation, knowledge is the key for European firms to keep a real competitive advantage in term of innovation. This is true especially because today Europe is under a pressure that comes from emerging countries. In that research paper we develop the idea that, the way that emerging countries can innovate by improving their knowledge performance, is a real threat for European leadership. Compare to the USA, Europe is considered to have a quite different way to deal with globalization and Knowledge management. US individualistic culture leads them to a negative competitive approach of knowledge. In Europe, firms have a better approach of Knowledge management; more consensual. European companies have the ability to share innovation project, even if they are competitors. There is a long way for Europe to become the global Knowledge leader. If European authorities really want to help their firms, they need to stimulate education, research and innovation. Continue to empower European's human capital is a crucial aspect to succeed.

Keywords: Globalization, Knowledge based-economy, Innovation, Lisbon Strategy.

Extraits

[...] European authorities are aware of the importance of knowledge to achieve a global goal of growth and prosperity for all European stake holders. That's why the Lisbon Strategy has been decided in 2000. Its aim was to make the Europe the number one knowledge-based economy of the world by 2010. Competitive through innovation” this is what Europe wants; its firms have to do that to compete in the global world. As it's possible to see in that investigation, knowledge is the key for European firms to keep a real competitive advantage in term of innovation. [...]

[...] [7]OCDE Distribution (1996) knowledge based economy”: The role of the science system in the knowledge based economy. [8]Based onSandra Higgisonarticle for “Inside Knowledge review” datedof October 2003 about how EU states are dealing with KM. [9]According the OECD : Scoreboard 2001 Towards a Knowledge-Based Economy [10]Presidency Conclusions on the Lisbon Strategy 2000-2003 by Theme (European Council, 2003) [11]It was imagined and support by the European Council that was in the Portuguese capital during that period. The 2003 European intangibles summit' (Prism, 2003) part based on an Interview of Leif Edvinsson , Intellectual Capital Expert and world's first Corporate Director of Intellectual Capital at Skandia of Stockholm [14]Interview of Leif Edvinsson Feiwel, G., R., The Intellectual Capital of Michal Kalecki: A Study in Economic Theory and Policy (University of Tennessee Press, 1975) [16]foundations for a sustainable knowledge economy [17]How do clusters create knowledge? [...]

[...] (1992). National Systems of Innovation: towards a theory of innovation and interactive learning. London, Pinter. - SCHUMPETER, J. (1934 (1959)). The Theory of Economic development: An inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Cambridge MA, Harvard University Press. - MALMBERG, A. and D. POWER (2003 forthcoming). On the role of global demand in local innovation processes. [...]

[...] All LRG that are dealing successfully with globalization are those whose leaders have a long term entrepreneurial vision. Promotal is French LRF that interacts with more than 70 countries. Without a quite interesting strategic vision, that LRF whose staff is composed of about 11 people would have been in trouble. In the middle of the 90's that medical furniture manufacturer was in a difficult period. In 1998 “Midmark” a major US LRF took control of it. Midmark was the leader in the same business area, but only in the USA. [...]

[...] That's why it's important to understand the relationships between the “knowledge-based economy” and the traditional economies. The development of networks and computers lead information to be used by every people. Today's workers need to have some skills to understand and work with the information network. So workers can learn and reapply the best practices. There are three main parts to understand this concept: trends in the knowledge-based economy, the role of different strategic departments and the development of knowledge-based indicators and measures. [...]