Multilevel Upgrade of the Knowledge Economy Pyramid Model - The Correlation between Productivity and Competitiveness, and Impact on the Standard of Living

This work is describing the process of knowledge in the socio-economic global context, a pledge of the Endogenous Growth Theory extrapolated at macroeconomic level. There is a direct correlation between increased value of knowledge, improved productivity, increased competitiveness and enhanced welfare. A threefold approach of knowledge environment is consisting of scientific perspective, strategic perspective, and capacity building perspective. At the end of the process, the outcome is a higher standard of living for the individuals who contribute to the value creation of knowledge. Multilevel upgrading of the KEP model is a logical framework of generating value through the use of knowledge. The cycle is completed only when all the levels are acquired, from bottom to the top, and all the correlations are in place. The active role of the stakeholders determines the outputs and the outcomes of the knowledge system created. Once the standards of living are enhanced, the cycle is starting again from the bottom, but on a superior premise. Basically speaking, multilevel upgraded KEP model is an on-going knowledge process where innovation, creativity, leadership, and entrepreneurship, are reliable tools to achieve the welfare of the population. Today, the accent of the competition is moved from the vertical fields or sectors in the economy, such as manufacturing or retailing, agriculture or transportation, to horizontal functionalities, such as innovation, creativity, leadership, or entrepreneurship. The most adapted economies to this transformation will succeed to take advantage of competitiveness.