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Tony Weir Australian Bureau of Statistics Measuring a Knowledge Based Economy and Society (email: [email protected]) Definition A knowledge-based economy is an economy in which the production, distribution and use of knowledge is the main driver of growth, wealth creation and employment across all industries. (OECD 1996, APEC 2000) Motivation “The ability to create, distribute and exploit knowledge is increasingly central to competitive advantage, wealth creation and better standards of living…While the overall trends are clear, large differences remain within the OECD area.” (OECD (2001) Approaches to KBE/S measurement • Statistical indicators within the context of a descriptive framework • A KBE/S index • Direct measurement of knowledge Why create a KBE/S framework? • ABS thought it important to present measures of the knowledge based economy and society. • A framework provides a structure and logic for statistical content. • We call our framework a “descriptive framework”. Basis of the KBE/S framework • OECD New economy: beyond the hype (2001) • Asia-Pacific Economic Co-operation (APEC) Towards KBEs in APEC (2000) • ABS work on social capital etc. Structure of the KBE/S framework • Three core dimensions – Innovation and entrepreneurship – Human capital – Information and communications technology. • Two supporting dimensions – Context – Economic and social impacts. Simplified framework structure Context Information and communications technology Innovation & entrepreneurship Human capital Numerous context influences Economic and social impacts Structure of the framework (ctd) • Each dimension is described in terms of: – characteristics – indicators (quantitative measures of characteristics) Example • Dimension: – Human capital • One characteristic from the dimension: – Stock of skilled people • One indicator of this characteristic: – Highest completed level of educational attainment of the population, by age and sex. Indicators of the framework • Ideally an indicator should be: – – – – – relevant to the characteristic it is measuring supported by relevant and timely data sensitive to what it is measuring intelligible available for several periods, including recent ones – available for other countries. Status of the ABS framework • Publication of a Discussion Paper in August 2002 • Parallel release of HTML version – with hot links to data sources for statistical indicators • Much data already published elsewhere. Knowledge-intensive Industries, 1998 % of total gross value added United States Germany United Kingdom France OECD (23) Finland Korea Other Knowledgeintensive services Canada (1997) High and medium-hightechnology manufactures AUSTRALIA Health and Education Norway (1997) 0 10 20 30 % of GVA 40 50 Knowledge Workers as % of employed people, 2000 Finland Sweden Germany Canada New Zealand United Kingdom AUSTRALIA United States Ireland Japan 0% 10% 20% 30% 40% 50% Proportion of skilled occupations, 1989-2001 % share of total employment 40 37 34 High 31 Medium Low 28 25 1989 1993 1997 2001 Investment in Knowledge, 1998 (Broader definition, as a percentage of GDP) Sweden United States Korea Canada OECD Total Germany R&D Japan Software United Kingdom Higher education Other levels of Education AUSTRALIA Ireland 0 2 4 6 8 % of GDP 10 12 14 “Workers will require the ability to create, analyse and transform information and to interact effectively with others…. Learning will increasingly be a lifelong activity.” -Alan Greenspan (July 2000) Percentage who have NOT completed school 1999 Mexico Malaysia New Zealand AUSTRALIA US Ireland Korea Japan 0 20 40 Percent 60 80 Trends in multi-factor productivity growth* Ireland Finland AUSTRALIA Canada Sweden United States Norway Germany 1990-95 United Kingdom 1995-99 Japan New Zealand 0.0 1.0 2.0 3.0 % change p.a. 4.0 5.0 Contribution to labour productivity growth in Australia and the US over the late 1990's* 4 % increase per year 3.5 3 2.0 2.5 MFP grow th 2 Other Capital 1.6 0.4 1.5 1 0.1 1.3 0.5 0.9a 0 US(1) AUSTRALIA(2) ICT Total Collaboration, by type of innovation, by country, 1999 Sweden (East Gothia) Norway Suppliers Denmark Customers Other Austria AUSTRALIA 0 1 2 3 4 Number of collaborators per innovative firm, by category BUSINESS ENVIRONMENT KBI (%GDP) Services Exports (%GDP) HT Export (% mfg exports) FDI /GDP Govt Transparency Financial Transparency Competition Policy Australia Openness INFORMATION AND COMMUNICATIONS TECHNOLOGY Mobile Telephones p.c. Phone lines p.c. Computers p.c. Internet Users p.c. (1999) Internet Users p.c. (2001)* e-commerce (%) INNOVATION SYSTEM Researchers p.c. GERD /GDP BERD / GDP US Patents p.c. Company co-op Company-uni co-op HUMAN RESOURCE DEVELOPMENT Secondary Enrolments NSE Graduates p.c. % Knowledge Workers HDI 0 1 2 2 Australia 1 0 2 Canada 1 0 2 S’pore 1 X 0 2 Korea 1 0 Bus Env ICT Innov Sys HRD “If governments and their citizens are not to be swept away in the ‘gales of creative destruction’ marking the evolution of the knowledge economy, they will need to fill the vacuum in understanding which currently exists.” - A. Burton-Jones, Knowledge Capitalism (1999) Comments are sought on all aspects of the framework • theoretical and empirical basis • structure and choice of dimensions & characteristics • range of indicators proposed including priorities • dissemination possibilities – comprehensive compendia – thematic publications – frequent summary releases in paper or via Web.