Learning economy
Encyclopedia
Modern economies can be characterised as learning economies in which knowledge is the crucial resource and learning is the most important process. Different kinds of learning and economically relevant types of knowledge can likewise be identified. It is argued that pure market economies
, if such existed, would have severe problems in terms of learning and innovation. The 'learning economy' is a mixed economy
in a fundamental sense.
In the public debate, knowledge is increasingly presented as the crucial factor in the development of both society and the economy. In a growing number of publications from the European Commission
and Organisation for Economic Co-operation and Development
it is emphasised that we currently operate in ‘a knowledge-based economy’. For several reasons many prefer the term ‘the learning economy’ in characterising the current phase of socio-economic development.
bubble, which collapsed in 2001 (but slowly recovered, albeit, in a leaner format, throughout the 2000s). This literature was initially known more for its hyperbole and faddishness than for its academic/empirical integrity. More recently [2011] however, empirical research from cross-disciplinary fields such as innovation studies are altering that perception.
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
, if such existed, would have severe problems in terms of learning and innovation. The 'learning economy' is a mixed economy
Mixed economy
Mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies. Most mixed economies can be described as market economies with strong regulatory oversight, in addition to having a variety...
in a fundamental sense.
In the public debate, knowledge is increasingly presented as the crucial factor in the development of both society and the economy. In a growing number of publications from the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
and Organisation for Economic Co-operation and Development
Organisation for Economic Co-operation and Development
The Organisation for Economic Co-operation and Development is an international economic organisation of 34 countries founded in 1961 to stimulate economic progress and world trade...
it is emphasised that we currently operate in ‘a knowledge-based economy’. For several reasons many prefer the term ‘the learning economy’ in characterising the current phase of socio-economic development.
Criticism and Scarcity of Empirical Studies
Much of the initial theorizing about the advent of a fundamentally new era in which economic activity is increasingly 'abstract', i.e., disconnected from land, labour, and physical capital (machines and industrial infrastructure) was associated with the 'business management' literature of the 'new economy' NASDAQNASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
bubble, which collapsed in 2001 (but slowly recovered, albeit, in a leaner format, throughout the 2000s). This literature was initially known more for its hyperbole and faddishness than for its academic/empirical integrity. More recently [2011] however, empirical research from cross-disciplinary fields such as innovation studies are altering that perception.