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A Knowledge Economy Paradigm and its Consequences

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Author Info

  • Soete, Luc

    ()
    (United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology)

Abstract

During the 1980s and 1990s "Active labour" market reforms opened up labour markets in Europe, making them more flexible without putting in jeopardy the essence of the social security protection model. Countries that went furthest in such "active labour" market reforms such as the UK, the Scandinavian countries, and the Netherlands witnessed not just reductions in unemployment, but also impressive increases in employment participation rates, particularly among underrepresented groups in the labour market. The challenge today appears more or less similar, but this time with respect to knowledge. Interestingly, it is those EU Member States that have succeeded most in "activating" their labour markets and developing better functioning social welfare models that have performed best in terms of knowledge investments. This suggests, that success in boosting knowledge investment generates the public resources for the development of social welfare models capable of addressing rapid change, and in particular the global changes of the 21st Century.

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Bibliographic Info

Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 001.

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Date of creation: 2006
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Handle: RePEc:unm:unumer:2006001

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Related research

Keywords: Knowledge; Human Capital; Investment; Social Welfare; Technological Change; Social Change; Globalisation;

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Cited by:
  1. Singh, Lakhwinder, 2006. "Innovations and Economic Growth in a Fast Changing Global Economy: Comparative Experience of Asian Countries," MPRA Paper 80, University Library of Munich, Germany.
  2. Arvanitidis, Paschalis & Petrakos, George, 2007. "Characteristics of Dynamic Regions in the World Economy: Defining Knowledge-Driven Economic Dynamism," Papers DYNREG19, Economic and Social Research Institute (ESRI).
  3. Singh, Lakhwinder & Singh, Baldev, 2009. "National Innovation System in the Era of Liberalization: Implications for Science and Technology Policy for Developing Economies," MPRA Paper 15432, University Library of Munich, Germany.

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