Governing the Global Knowledge Economy: Mind the Gap!
Globalization now extends beyond markets for goods and finance into markets for technology, knowledge workers, and innovation finance. This paper asserts the existence of a widening gap between the rapidly growing global knowledge economy and the woefully inadequate institutional framework that supports and regulates it. This gap threatens to undermine the potential gains and could slow or even stop the growth of the global knowledge economy in its tracks. In addition to describing key features of the emerging global knowledge economy, the paper highlights the asymmetric relationship between corporate strategy and government policy that results in the governance gap. The paper concludes with a preliminary discussion of design principles for bridging the governance gap and generic policy suggestions.
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