Prima Pagina
Reg. Tribunale Lecce n. 662 del 01.07.1997
Direttore responsabile: Dario Cillo


Paolo Manzelli <LRE@UNIFI.IT>

<What is the  relationship between Knowledge Management and Knowledge Driven Economy?>

The paper would like to contribute to :

1)· define Knowledge  Society in the contemporary context  of knowledge driven economy;

2) · examine the key-forces behind the knowledge driven economy;

3) · consider the opportunities on “e.govern policy” changes  in a comparative European perspective

4) · identify areas Research/Actions for the "mental change" , FP6 –CITIZEN 3 project  proposal




1) - Knowledge Society development obviously does not simply consist in a  specialised research area where a closed academic science intranet growth and also do not mean a simple transfer of information and technology  that can be written down and communicated by mass-media or  transmitted by a consultant approach to the industry.


The  so called “codified” knowledge today get a limit in the paradox of the “Non-additivity” of knowledge growing  in Society that means there is not an infinite linear expansibility of knowledge growth. As a matter of facts the effective  incorporation of the understanding of  knowledge growth  in Society is depending by  the efficient integration of the knowledge in the citizen understanding and as a direct consequence in the organization of the appropriated division of labour getting an more and more qualified work- productivity.


Therefore the diffusion and exploitation of integrated embodied knowledge in the changing citizen mentality , may be just as important as the creation of new knowledge in the contest of the Knowledge Driven Society. (KDS)


In contemporary European development  the KDS can  be optimised  on the way of the process that see a continuos extension of the  frontiers of  Europe till the proper geographical and historical limits . In fact this European recent strategy acts as well as an integration of Knowledge and Development; so that  the fundamental consequence is that European KDS  will assume a different aspect in respect to the past of  industrial society, because the last  generally it will be  based on a National approach of socio-economic development.


To define the conditions of the development of European KDS it is also important to underline the following distinction : a) in the industrial society knowledge capital is embodied more in advanced technologies through the transfer of knowledge into a push bottom productive technology , and not too much  in cultural  understanding of citizen ; b) in the post industrial Knowledge Economy the Knowledge Capital need to be  more oriented to implement the cultural- democratic approach  through  an “e.democracy” strategy,  for giving to the citizen the real opportunity  to be protagonist with  an more direct power on  the developmental choices and preferences.

  Acting in this new way  for enhancing the European KDS the incorporation of integrated and shared knowledge, the knowledge progress will not conduct simply to an a linear acquisition of knowledge, but the factual results will be more directed on a change in ways of thinking about the future productive socio-economic development of Europe, that will be more useful for enhancing human resource potential in the context of an  effective development of the post-industrial Knowledge Society.

2)- The focus of this “mental change”  approach will be  consolidated on the  growing of "quality of the production" ;  as a matter of facts the “Quality of  Product and Processes” is in an indicator of the  competitive ability to grow up  the added value of production in the international market ; for instance the environmental quality and safety standard defines a most impotent piece of the growth of competitiveness of the world wide knowledge driven economy.


Therefore assuming a different way of thinking in respect to the past development of industrial society  · the key-forces behind the knowledge driven economy are powerfully  depending  not only by the generation of new RTD Knowledge,  but also by the strength of exploitation of Knowledge  Management ; in fact Knowledge Management Innovation  has become to play the predominant part in the creation of the more effective use and exploitation of all types of knowledge in all manner of productive activity.


In the near future the four structural forces that will be connected with the   Knowledge Management ability to driving economic transformation, will be a consequence of the development of “e. learning”  facilities oriented to understand the best practices of  KNOWLEDGE ECONOMY developed in local developmental context , in a way that will became possible to grow up a critical mass of  shared European  knowledge by means a long distance applications of communications technology .   As a matter of facts KNOWLEDGE MANAGEMENT focused on  ITC learning innovation  permits the expansiveness of the sharing of knowledge; the proliferation of knowledge  products, the rapid scientific and technological advance; the   increasingly global competition; and the growing up of citizen's   scientific and cultural understanding,  that strongly contribute to the shifting consumer demand of the  quality of production, giving a fundamental and particular attention to the  environmental sustainability and the human safety.


The contemporary  tendency of the Knowledge Driven Economy (KDE) as a consequence yields some implications for economic performance of the industrial productive structure that enhance the nature of growth in the  so called “Weightless Economy


The failure of central planning of any single enterprise based only on the cash flow of business is an example of the impact of  the KDE on the industrial structure that need to be able to promote clustering of enterprises in network with RDT centres and Governmental Institutions,  to reply to the needs of innovative knowledge management, that will be able to take in consideration the evolution of the “Quality of Products and Processes” that is become the fundamental indicator of the global market and marketing competitiveness.  As a matter of facts the major contemporary  best practices of KDE get a  point of convergence in the recent restructuring of centrally planned economies,  towards decentralised networking  economies. Many “Extended Enterprises” are becoming today successful “multi-enterprises and Institution corporations”, locating themselves around centres of RTD excellence in different countries in Europe.


All these changes have made the focal point of the Knowledge Management Innovation as well as the more important assurance as an innovative Knowledge management able to drive of competitive advantage and to be a source of economic growth in the context of the contemporary European Extension  In turn the transformation of the  nature of competition generate a need the development of a  “Mental Change” strategic plan  for all the following categories of workers  :


· enterprise’s managers - who have to think far more about realising advantage through knowledge ;

· employees - who need to change the skills and to learn for adjusting  the their  working ability

· investors and financiers - who need to recognise and to assess the value of “intangible assets”

· policy makers - who must create a climate conducive to success to the competitive new challenges created by the ITC –business application to a  wider exploitation of new products and processes.


This deep need of “Mental Change” can avoid the pernicious recourse to obsolete political and economical points of view,  that today drastically  conduct to some great fallacies in much contemporary economic decisions. As a matter of facts is a pity that till now obsolete way of political thinking,  find their conceptual  bases from a  traditional  believing to an obsolete culture of the past development of the industrial society ; therefore, thinking in this oldest way policy decisions sometimes do not understand  the expansion the of the knowledge driven economy that will create a proliferation of material, firms and activities by means an  expansion of networking enterprises that connect industry with centres of RTD and Governmental Local Institutions,   into a proliferation of  Knowledge Society activities, shifting the scale factors of economy and as a direct consequence the competitive advantages in the context of a  Knowledge Sharing and Networking Economy.


3) -The Management for Government Policy has a central role of institutional and cultural change in the creation of a new knowledge based economy, this because the Governmental Institution are elected by citizen; therefore they need to co-ordinate the adjustment of the territorial business strategies,  within the goal of the vital problem of the new employment creation, in a way that is be possible  for the Governmental Institution,  to drive the local economic competitiveness from the  territorial level forward the macro-economy wider European level..


In the near future the growing importance of knowledge sharing of best practices and human capital resources labour assessment,   can give in a long term perspective to the Governmental Institution. a renovate   societal power, able to develop an efficient  European strategy of  Knowledge Economy , based on an  increasing importance of knowledge, creativity and skills of people.

Therefore is changing the strategic way  by means  policy makers of  Governmental Institution can contribute to develop a new economic equilibrium in  the Knowledge Economy dynamics of transformation, by means  accrossing the impact of the three fundamental socio-economical factors : e.g. solidarity ,delocalisation and  globalization processes.


Therefore policy perspectives of Governmental Local Institutions will be converge in promoting European social economic consortia, based on a different characterisation of the dynamics of the innovation of the local development in the extension process of the wider Europe ;  the last perspective can be applied taking into consideration the following possibility of intellectual job creation coming from : a) the one hand need development of  an integrated strategy among RDT centres Cambers of  Commerce and Industry ( especially for the labour intensive ones i.e. normally the SME’s)  and  b) from the other hand, spreading the  need to promote  a internationalisation interactive strategy of industrial decentralisation , that will be  a function of constitution of  delocalized consortia of entrepreneurial integrated project-activities, open to an international flexible  partnership’s,  that can ensure the quality of the progranm also in the cases of a changing context, where some unexpected developmental needs of market’s globalization, requires to be taken in new consideration for re-enginering the working program.


4) · - Premise: Research and foresight for the development of Knowledge Economy in a wider  European Society .- Scientific and Technological Objectives of the -Integrated Project. On the general issue: <Mental-Change >-FP6 - CITIZEN-3  Integrated Project . See Search for partners in:


 In view of the complexity of the contemporary relations between science and society, there is a real need for multidisciplinary research (RTD) and prospective on ITC studies, in order to facilitate not only a better understanding of citizen of the different interactions between science and society that need to be grow up for the development of the European KNOWLEDGE ECONOMY, but also to enhance the ability to respond to emerging crises and questions of the global market for the sustainable integrated development of European SME's in a wider Europe strategy.


 Given the scale and nature of the innovative networking issues of sharing knowledge that need to be covered in a creative manner of Information Technology of Communication, it would clearly be advantageous to proceed to an European  comparison of changing the socio-economic interaction patterns between "advanced research & productive work"  for improving “e.govern innovation” through the direct partnership  local ( National or Regional) Governmental Institution and to understand and to act in a way to promote a large impact on citizen dialogue on this fundamental topics presented by each  country-partner of M-Change proposal. .


Broad goals on Science & Society issues.


- First of all,  the M-Change Project it is intended to strongly support the strategic goal set by the European Union in Lisbon of becoming by 2010 the most competitive and dynamic Knowledge-Based Economy in the world.


- The project  M-Change it is also part of the process of creating  and strengthening the European Research Area (ERA) , through the production of creative  integrated knowledge to implement the SME's Competitiveness in Europe.


- Thirdly, the M-Change project  it is intended to contribute to implementing Citizen's  debate on the future of  the KNOWLEDGE ECONOMY in an extension of Europe,  to give an " e.democracy" and "e.learning" approach  for growing an dynamic and flexible new  networking Entrepreneurship in a Trans European dimension.


More specific objectives of M-Change action plan will be :


--> Putting  responsible science growth at the heart of "e.govern" policy making

--> Bring science innovative, policies closer to citizens by ITC interactive Communication


For those objectives the project M-Change will be subdivided in some “sub-projects” oriented to develop Regional or National comparative RTD studies and promoting various interactive dialogues on “Science and Society” for improving Knowledge Economy in the wider Europe dimension.


The Regional or National “virtual communities or stakeholder’s  grouping”  ( or also for specific issues Transnational networks: for instance Food Quality Traceability) ) are well suited to promote comparative European studies as well as the “science and society” dialogue, where the  topics proposed by the project partnership , will be of direct interest to citizens and focused on the general issue of  the European Knowledge Driven Economy cognitive and actuative advancement.


Hence to fulfil those goals and objectives the FP6.-CITIZEN-3 proposal it will be centred  on   the need to develop a “Mental Change “ approach , especially about the issues regarding the sustainable development of  networking entrepreneurship among RTD innovation and SMEs Competitiveness ( i.e. favouring for instance  “ flexibility” ,  “e.learning on the job innovation” , “environmental economy”, “gender equality in science and society”…. an so on)

 It would be desirable that each “sub-project” corresponds to the promotion of a  “Virtual Community” of to favor the  participation by scientists and SMEs operators and Citizen in forums and hearings, that will be  organized , at Regional or National levels ( or Inter –Regional ,particularly cross-border  or trans-national  level),  where some  particular  issues are also of pan-European interest.

The organization  inter regional  or inter-national “science and society” forums,  oriented to improve the European Knowledge Driven Economy, will be encouraged, inter alia through the development of a database listing scientists with communication skills by appropriated partnership well expert in  making information more accessible by means “e.Ediction”  and “e.learning on demand” dissemination  practices presented through WEB-PORTALLS written in diverse European Languages.


Object: "State of the Art" – Notes for the potential partnership.


Ø      It is important for each potential partner to look carefully to the "Guide of  Proposers" :

Ø      in , >,  where is requested that each partner  need to prepare a description of  the  "state-of-the-art" in relation to  the proper country, about the change improved by the European strategy to develop  Knowledge Economy.


This can be done applying methods to identify current economic conditions, aiming to assess the successive description of the key action of the M-Change Working plan proposals, for improving an "e.government" innovative  strategy in favor of the development of future European Knowledge Driven Economy.  Therefore each partner need to  build up a "survey-analysis" around a careful  and thoughtful approach to distinguish (a), the old industrial society  condition of development , from (b),  the potential economic  impact of the future European Knowledge Economy .


This beyond indicated distinction, is a initial requirement to be done by each partner , aiming to describe the successive forecasting about the needs of "Mental  Change" in “e.govern innovation” oriented to develop strategic choices and actions,  based on the identification of economic Strengths, Weaknesses, Opportunities and Threats (SWOT)  in a Regional inter-regional or National or Transnational thematic new look of strategic reinforcement of  European Research Area ( ERA).


Al last but not at least partners can suggest some aspects of their Action /Research sub-projects

on their local opportunities to contribute to the European Knowledge driven Development.

For instance  partners can be taken into  consideration, ( looking at the more complete overcoming of the obsolete criteria of development of the industrial society ) some of the following issues::


- Growth and increasingly value of “Weightless Economies”  ( through new relationship between tangible and intangible added value to quality of production)

- Networking Extended Enterprises aggregation into a Business Strategy of Knowledge Economy

-         Knowledge change and Technological ITC  innovation in contemporary KDE.

- e.Education innovative strategies as well as for instance: on the job long distance training addressed to implementing  Knowledge Economy understanding ( particular contents in this field will be : Gender Equality , Ethics and Environmental values in Knowledge Economy , conception and criticisms on intellectual property  European regulation .. and so on)

- Stakeholder's Clusters and Virtual Community development in favor of SME's competition policy in the context of the European Knowledge Economy.


Concluding remarks


- Significant social changes are being driven by the European Knowledge Economy.


Therefore there is the possibility for a new economic growth which is potentially unbounded because of the nature of an extended advanced knowledge economy applications using  ITC advanced methodologies , that will be very different from the role applied to knowledge in the obsolete industrial growth.

Therefore the MENTAL CHANGE proposal will be to realise an important contribute to the KNOWLEDGE ECONOMY developing  and comminicating by ITC methods , post industrial growth theories and  best practices .


Following those considerations goals and objectives the “Mental Change” FP6- project, promoted by of LRE/EGO-CreaNET of the University of Florence Italy , would like to  aggregate  interactive and proactive research teams and  industrial partnership in collaboration with Governmental Institutions  , to develop a “collaborative  intelligence management” ,  aiming to give an important result , in the development of new way of thinking in Knowledge Economy application , to furthering understanding and practising the contemporary European strategy on Knowledge Economy .


In conclusion :  the project Proposal M-Change  will be of a vital importance  for the contemporary business sustainability, if the partnership consortium, will be  able to share innovative knowledge for  re-vitalising  the old industrial cognitive ,  in a new way of developmental thought that need to be appropriated to  the future European Knowledge Economy growth..


Firenze 8/AUG./2003 .

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