Innovation in Knowledge Economy∗

Introduction

Knowledge is an essentiality related to development. The three pillars of development which have already been identified by the United Nations (UN), are economic development, environment development and socio-cultural development. These three pillars should be put together for balanced development. Knowledge is critical to the strengthening of the three pillars.

For economic development, knowledge has become so important that at certain stage of development, the economy is characterized as a knowledge economy. This is a nuance that needs to be understood. Knowledge economy changes the scenario in the sense that it will have the wherewithal and the means to have access to data—mine it, warehouse it and mine it at will—which was not so earlier. India can create capacity; it has the processing power which has been growing fast; it has bandwidths which are trebling every 24 months and it has networks which are growing very fast.

One of the factors that contributed to the success of information technology (IT) in this country is the fact that the Department of Electronics (DoE), which was overseeing IT in earlier years, did not see itself as a regulator or as a controller; it saw itself as a facilitator. It tried not only to facilitate but also to foresee events as they were coming, and even go beyond the vision of the industry to set the base and the horizons for the industry. As a result, India is now perceived at the international level as an IT power. India should now strive to move further and transform its economy into a knowledge economy.

Innovation and Competitiveness