Knowledge: Its Economics and Its Productivity

second assigment from Pak Naya, is resuming about knowledge of economics and productivity and what the relation between it. Fyuuuhhh…in English…muzukashii…oia, this resume take from Drucker book.

Initially, the economy is not influenced by knowledge as a basic resource. And becoming more capitalist. Critics of the capitalist economy pioneered by Karl Marx. In a capitalist economy, the Austro-Socialist Germany, Rudolf Hilferding postulated, the margin between what banks pay for money and what it charged for the inevitable widening. As a result, banks and bankers into making profits only and the rulers of capitalist economy.
Today commercial banks everywhere in deep trouble. Margin between what they paid for the money they earn and what it continues to shrink.
We need an economic theory that puts knowledge into the middle of the process that produces wealth. This explains why there are new entrants, particularly in the hightech field, can, almost overnight, sweep the market and drive out all competitors, no matter how well they are embedded-such as Japan it into the consumer electronics and automotive markets in the U.S.
There are three ways to apply the knowledge to produce changes in the economy that’s There is first the continuing improvement of process, product, service; the Japanese, who do it best, call this Kaizen, Then there is exploitation: the continuous exploitation of existing knowledge to develop new and different products, processes, and services. Finally, there is genuine innovation.

Almost developed countries spend something like one fifth of their GNP on the production and dissemination of knowledge and spent on research and development on the production of new knowledge.
Very few countries spend a similar portion of their GNP to the traditional form, namely money, the capital. Even in Japan and Germany are two big countries with the highest level of capital to levels exceeding one-fifth of the GNP of only forty years of rebuilding and expansion of the fever in the post-World War. In the United States, capital formation has not reached 20 per cent of GNP over the years.
Knowledge creation is thus already represents the largest investment in any developed country. And knowledge becomes a key factor in competitiveness. Increasingly, the productivity of knowledge will determine economic success and social development, and in all economic performance. And we know that there are remarkable differences in the productivity of knowledge between countries, between industries, between the individual organizations. .

Keynes distinguishes between money invested and hoarded money, and prove the existence of differences in capital productivity of money. Money invested far more productive than hoarded money.

Productivity improvement requires knowledge of the results. Productivity of knowledge will be the deciding factor in the company’s competitive position, industry, the whole country. Benefits can only be obtained if there is an ability to take advantage of the universal knowledge that is available.


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