Week 7

 Economic Forces Influencing Education & The School

A knowledge-based economy is defined as an economy that is capable to produce and disseminate knowledge as a mean to create wealth and employment. Knowledge is recognized as one of the primary factors in sustaining economic growth aside from land, labour and physical capital. Besides that, in the K-economy theory, the human capital has become the source of creativity, innovation and generation of new ideas, with reliance on information and communication technology (ICT) as an enabler. Moreover, there is a positive correlation and mutual interaction between the “knowledge society” and the “knowledge-based economy”. Also, knowledge has become a critical requirement for enhancing the competitiveness of countries in the twenty-first century. Today's Malaysian economy is in the process of evolving from a production-based economy into a knowledge-based economy.