What Do We Really Know About the Knowledge Economy

What Do We Really Know About the Knowledge Economy
By [http://ezinearticles.com/?expert=Elaine_Wood]Elaine Wood

Call it the Knowledge Economy or the New Economy ... do we really understand what it means for our children's education, our businesses' future growth, our community's priorities? That might be like asking a farmer 75 years ago how the Industrial Revolution would ultimately change our lives. It's difficult to envision and to see the full impact when you're standing in the middle of it. But it is to our region's economic and cultural benefit to at least dispel some of the common myths about the Knowledge Economy.

Myth #1: Knowledge workers are a specialized category of people with high technology skills. The truth is, knowledge workers are quickly becoming infused into all industry sectors representing nearly all job titles. You can hardly find a business anymore that doesn't depend upon a work force that is intellectually agile, tech savvy, idea-prone, and fast to shift gears. Creativity, versatility and innovation are prized assets for most businesses these days.

Myth #2: Knowledge workers don't create products, and the Knowledge Economy is replacing manufacturing. The truth is, product development is as critical as ever to the country's economy, and manufacturing is perhaps the sector in which new levels of knowledge are most crucial. The production jobs that required very little education and relatively low skill levels continue to disappear. The knowledge levels needed now to design and produce American-made goods are much higher than ever. Manufacturing workers must be integrally involved in higher-order problem solving processes, fast-paced technological changes, and complex learning situations. Manufacturing is not dying; it is evolving and transforming. And that evolution is punctuated by the need for employees to be knowledgeable on many fronts.

Myth #3: Every young person now needs a Bachelors Degree. The truth is, every person now needs some kind of post-secondary education or training resulting in a credential of value, but not necessarily a traditional Bachelors Degree. Most people finally understand that our kids can no longer walk out of the high school and into the factory where they will earn a good wage and benefits for the rest of their lives. Eighty percent of the fastest growing occupations now require some kind of post-secondary education. But the assumption that every single person now needs a traditional four-year college degree is not accurate.

First, every student needs solid foundational skills in reading, writing, math, history, science, social studies, and problem solving, which they should be receiving in the K-12 system. Depending upon the individual's career interests, the next route can often be specialized career training that could take anywhere from several months to several years. Some of our economy's best-paying positions - ones that employers can't readily fill - require specialized credentials obtained outside the traditional college avenues. Ask yourself why a Cadet can graduate from the Great Lakes Maritime Academy and walk straight into an $80,000 position, or why several local, thriving companies cannot fill $50,000/year jobs in advanced machining, or how a savvy young entrepreneur is making $100,000/year after a year or two of web design courses. For many people, the traditional four-year Bachelors Degree is still the best path to a rewarding career, and there's much to be said for the overall value of a liberal arts education for many great careers. We just miss the mark by thinking it is the only road in the post-secondary journey of the Knowledge Economy.

Yes, this economic transition is as significant as the one from the agricultural age to the industrial age. No, we do not yet fully understand it. What we do know, though, is that the term "economic capital" has taken on tremendous new meaning. It's no longer primarily the building, the machines, and the working cash. Although those elements are still important, the most important ingredient now is the talent of the workforce. Today knowledge is the currency that drives business and industry, and gives companies - and countries - the competitive advantage.

Elaine Wood is Deputy Director of the Northwest Michigan Council of Governments which administers programs for the ten counties of Northwest Michigan. Primary service categories are: workforce development; business & economic development; regional planning & community development; community safety. For more comprehensive information about NWMCOG programs, visit our Web site at: http://www.nwm.org

Article Source: [http://EzineArticles.com/?What-Do-We-Really-Know-About-the-Knowledge-Economy&id=1987927] What Do We Really Know About the Knowledge Economy