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1. Japan’s Carbon Neutrality and Green Growth Strategy

Author:
Gyu-Pan Kim
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Japan is mobilizing all its policy capabilities for energy transition from fossil fuels to renewable energy and hydrogen energy from the perspective of realizing carbon neutrality by 2050. Among them, the overseas development and return of hydrogen energy to Japan and the domestic green hydrogen development are making great progress since the announcement of the basic hydrogen strategy in December 2017. Japan promotes the green growth strategy (December 2020) as a national strategy to achieve the 2030 GHG reduction target of 46% (compared to 2013) (NDC) and to realize ‘carbon neutrality by 2050’. Japan's green growth strategy sets 14 areas as key development industries, including offshore wind power, hydrogen, nuclear power, automobiles and batteries, semiconductors, and information & technology. It also presents action plans in the key 14 areas such as R&D, demonstration projects, introduction expansion, and self-reliance/commercialization according to the growth stage of each area. In this WEB, we would like to explore which part of Japan's energy transition policy and green growth strategy the Korean government will refer to in order to achieve the task of realizing carbon neutrality by 2050, and cooperate with Japanese government.
Topic:
Climate Change, Economic Growth, Fossil Fuels, Carbon Emissions, Hydrogen, Energy, and Green Transition
Political Geography:
Japan and Asia

2. Components of Industry Resilience to Maintain Sustainable Economic Growth under COVID-19 Within the Knowledge-Based Economy Frame-work: A Comparative Study Between Iran and South Korea

Author:
Marzieh Asaadi
Publication Date:
11-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
COVID-19 was first reported in Wuhan, China, in December 2019 and spread rapidly across the globe. Then on March 11, 2020, the World Health Organization (WHO) declared the COVID-19 outbreak a pandemic, causing more than 600 million confirmed cases and 6.49 million deaths around the world so far. The effects of the pandemic on societies can be examined mainly by two criteria: 1) the number of lives lost due to the disease (Mortality Rate), and 2) the number of jobs lost due to social distancing rules (fall in GDP). Both have a wide consequence for economic growth and other key macroeconomic indicators. An important explanatory factor for the significant difference between Case Fatality Rate (CFR) for Iran and Korea can be related to the Worldwide Governance Indicators (WGI) components (Daliri and Asaadi 2021). The WGI is a composite index consisting of six measurement factors, including voice and accountability, political stability, government effectiveness, regulatory quality, the rule of law, and control of corruption. Furthermore, another critical factor is COVID-19 governance which can be monitored by calculating Government Stringency Index. This index is a composite measure based on several indicators which monitor the state of lockdowns and social distancing and range to values between 0-100, while 100 presents the most restrictive. In addition to the governance of COVID-19, from the perspective of public health and lives saved, maintaining jobs and supporting the resilience of industries to achieve SEG has been another important concern for nations and governments worldwide. As stated by Bernanke (2020), it is widely believed that the global economic crisis caused by COVID-19 is different from past crises in terms of cause, scope, and severity that suddenly disrupted economic activity. These necessitate research on the potential determination factors influencing the response of countries, companies, and individuals to the COVID-19 crisis. The key to ensure Business Continuity and SEG is to identify factors that increase the resilience of businesses under COVID-19 circumstances and other potential public health crises. Theoretical and empirical studies confirm that three main explanatory factors are at play: 1) macroeconomic structure and governance, 2) financial resilience of companies which is traced by available capital (i.e., the physical and human capital), and firms' adopted strategies and 3) digital evolution state and momentum and the adaptation of countries to technological innovations and Digital Intelligence, which is an indicator of transmission to KBE. By examining these components, it is possible to evaluate the structure and response of countries to the pandemic and post-COVID era. Thus, the report seeks to contribute to the literature on sustainable economic growth under crisis through a comparative study of Iranian industries with South Korea. The main research question here relates to the components of successful covid-19 governance from the perspective of SEG and business continuity within a KBE environment.
Topic:
Economic Growth, Industry, Resilience, COVID-19, and Knowledge Economy
Political Geography:
Iran, Middle East, Asia, and South Korea

3. International Spread of Anti-dumping Measures and Diversification of Investigation Methodologies

Author:
Moonhee Cho, Cheon-Kee Lee, Min Ji Kang, and Min-chirl Chung
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
As global economic growth has lost momentum due to the COVID-19 pandemic and the tension between U.S. and China, among other developments, concerns about the spread of protectionism are growing. In particular, anti-dumping (AD) measures are more likely to expand in the future in that they are relatively easy to take and have a direct effect on international trade compared to other protectionist trade policies. This study reviews the spread of AD measures and the effects of AD measures on trade. We also pay attention to the fact that AD investigation methodologies are being diversified. Focusing on particular market situation (PMS) and adverse facts available (AFA) provisions, which have been applied in many recent AD investigations on Korean export goods, we analyze the logic of investigation authorities.
Topic:
Economic Growth, Trade, COVID-19, and Protectionism
Political Geography:
China, Asia, North America, and United States of America

4. Achieving Inclusive and Innovative Growth with Competition Policies

Author:
Minsoo Han and Subin Kim
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
In recent years, inequality has grown worse worldwide. Recent studies have pointed out weakening market competition and deepening industrial concentration as one of factors for this phenomenon. Therefore, the role of competition policies in promoting market competition should also be considered as a countermeasure against deepening inequality beyond the traditional view about competition policies. Against this backdrop, we empirically analyze cases of the US, the EU and Korea, and then propose a competition policy direction to achieve inclusive and innovative growth pursued by the Korean government.
Topic:
Inequality, Economic Growth, Innovation, Inclusion, and Economic Competition
Political Geography:
South Korea, United States of America, and European Union

5. Boom-bust Cycles Revisited: The Role of Credit Supply

Author:
Hyo Sang Kim, Sangyup Choi, and Yuri Kim
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This study investigates the impacts of credit supply on economic growth and financial crisis. Excess credit supply can make the economy and financial markets more vulnerable. While credit supply can drive economic growth by reallocating resources, it can also make the economy and financial markets more fragile. Asset prices sharply fall when deleveraging occurs in the case of a negative shock to the financial or real sector in a system where credit is excessively supplied. Furthermore, economic activity might be substantially reduced, extending the length and breadth of the recession.
Topic:
Markets, Financial Crisis, Economy, Economic Growth, and Credit
Political Geography:
Global Focus

6. Analysis of the Healthcare Sector in Africa and Its Policy Implications for Korea

Author:
Young Ho Park, Munsu Kang, Yejin Kim, Kyu Tae Park, and Young-Chool Choi
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
One of the main changes in Korea’s foreign affairs in recent years is the expansion of official development assistance (ODA), among which Africa is showing particularly rapid growth. Korea’s ODA to Africa accounted for 15% of its total ODA budget in 2010, and rose to 25% in 2019 as Korea emphasized its role in international development. Korea ranks 11th in terms of the cumulative size of ODA to the African healthcare sector between 2011–2019, totaling 674 million USD. As Korea’s expansion of ODA and solidarity in international development aid to respond to COVID-19 are related, the expansion of ODA in the African healthcare sector is anticipated to continue. This study analyzes features of the healthcare sector in Africa in an effort to suggest various plans for development cooperation, based on an evaluation of Korea’s ODA project design to enable the effective provision of ODA.
Topic:
Foreign Policy, Development, Health, Economic Growth, COVID-19, and Foreign Assistance
Political Geography:
Africa, Asia, and South Korea

7. China’s FDI in Europe and Europe’s Policy Response

Author:
Pyoung Seob Yang, Cheol-Won Lee, Suyeob Na, Taehyn Oh, Young Sun Kim, Hyung Jun Yoon, and Yoo-Duk Ga
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
China’s investment in the European Union (EU) increased significantly during the European financial crisis, but has been on the decline in recent years. The surge of Chinese investment has raised concerns and demands for analysis on the negative effects it could have on the EU companies and industries. In this context, the present study aims to analyze the main characteristics of Chinese investment and M&A in Europe, major policy issues between the two sides, the EU’s policy responses, and prospects of Chinese future investment in Eu-rope, going on to draw important lessons for Korea. To summarize the main characteristics of China's investment in Europe, the study found that the EU's share of China's overseas direct investment has continued to increase until recently. Second, investment in the Central and Eastern European Countries (CEECs) is gradually increasing, although it is still insignificant compared to the top five destinations in the EU: Netherlands, Sweden, Germany, Luxembourg and France. Third, China's investment in the EU is being made in pursuit of innovation in manufacturing and to acquire high-tech technologies. When it comes to China's M&A in Europe, the study found that the proportion of indirect China's M&As (via third countries (e.g. Hong Kong) or Chinese subsidiaries already established in Europe) was relatively higher than direct ones. Empirical factor analysis of investment also shows that China's investment in the EU is strongly motivated by the pursuit of strategic assets. Other factors such as institutional-level and regulatory variables are found to have no significant impact, or have an effect contrary to expectations. This suggests that China's investment in the EU is based on the Chinese government's growth strategy, and accompanies an element of national capitalism Today, It is highly expected that the COVID-19 pandemic will have a reorganizing effect on the global value chain (GVC) and Foreign investment regulation in the high-tech sector motivated by national security is emerging as a global issue as the US and the EU are tightening their control. As Korean companies are not free from the risk of falling under such regulations, a thorough and careful response is required. And for the Korean government, it is necessary to prepare legal and institutional measures regulating foreign investment in reference to the US and the EU.
Topic:
Foreign Direct Investment, Financial Crisis, European Union, Economy, Economic Growth, Global Value Chains, and COVID-19
Political Geography:
China, Europe, Asia, Korea, and United States of America

8. Changing Environment for Opening of Chinese Financial Sector and Implications

Author:
Sangbaek Hyun, Suyeob Na, Young Sun Kim, Koun Cho, and Bongkyo Seo
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The opening of China's financial sector has progressed at a very slow pace, unlike the manufacturing and trade sectors that have pushed for an active opening to the outside world. The Chinese economy has been growing rapidly while serving as a global production base, but since 2012, it has become necessary to modify its approaches to achieve growth as it enters an era of medium-speed growth. Recently, new reform and opening measures have been taken in various fields to improve the quality of the Chinese economy, and the need for reform and opening in the financial sector has also increased. Internally, the financial system centered on China's state-owned commercial banks has focused on indirect financing, which has served as a major obstacle to upgrading China's economy and industry to the next level, further increasing the need for reform and opening of the financial sector. Moreover, externally, the U.S.-China conflict which began in earnest in 2018, is applying strong pressure toward reform and opening in China’s financial sector. The Chinese government began to show a proactive attitude toward financial opening amid such internal needs and external pressure, and an important development was seen in China’s financial opening when President Xi Jinping declared further opening measures at the Boao Forum in April 2018. The Chinese financial authorities have prepared follow-up measures related to financial opening, and the Chinese government’s efforts toward financial opening in the three years from 2018 to 2020 yielded more results than the ten-year opening period since its accession to the WTO. Against this backdrop, this study examines the main contents of China’s financial opening process, which has been accelerating recently, and derives evaluation and implications.
Topic:
Finance, Economy, Economic Growth, and Banks
Political Geography:
China, Asia, and Korea

9. Digitalization in Asia-Pacific Region: Ready for Growth, but Ready for Inclusion?

Author:
Yungshin Jang
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The Asia-Pacific Economic Cooperation (APEC) has been promoting digital transformation as a key mean for regional economic growth and economic integration. The digitalization agenda within APEC is further accelerating since the COVID-19 pandemic. Recently at the APEC Leaders’ Meeting in November 2020, the APEC Putrajaya Vision 2040 was adopted, which includes “Innovation and Digitalization” addressing inclusive economic participation through digital economy and technology as a focus area for the next 20 years. However, it is still difficult to expect visible outcomes in the field of digital inclusion within APEC. Upon this backdrop, this article examines the progress of digitalization in the Asia-Pacific region, compares and analyzes the digital transformation policies of major economies in the region, demonstrates the effect of the digital gap on economic performance in the region, and goes on to produce policy implications.
Topic:
Economic Growth, COVID-19, Digitalization, and APEC
Political Geography:
Asia-Pacific

10. Data-and AI-driven Economic Growth in a General Equilibrium Model

Author:
Kyu yub Lee and Hyun Park
Publication Date:
02-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
We attempt to characterize a data- and AI-driven economy and establish a general equilibrium growth model in order to describe the data economy and examine how data and AI can affect the economy in the long run. To sum up, this article provides three policy implications. First, the authority should have a balanced view between privacy protection and data usage in economy-wide technology in terms of long-run growth. Privacy should not be considered only as utility loss, but must be considered as a contributor to loss in growth rates. Second, economic growth can be achieved by using higher amounts of data as well as continuous development in AI technology. A caveat is that AI-technology can boost economic growth only when it applies to all industries as general purpose technology. Lastly, the authorities should keep considering how to deal with new issues that include data ownership, outlaw data sharing, data market, AI bias, and so forth. Our model can be used as a starting point to such examinations.
Topic:
Science and Technology, Privacy, Economic Growth, Economic Policy, and Artificial Intelligence
Political Geography:
Asia and South Korea

11. Analysis of Economic Cooperation between Kazakhstan and South Korea

Author:
Yessengali Oskenbayev
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This article investigates the potential direction of the Kazakh-Korean economic relationship. The two countries have become major partners in their economic relationship. It is important for Kazakhstan to establish economic relations with South Korea, to diversify its economy. Kazakhstan’s economy is strongly dominated by mineral resources extractive sectors, and the country’s rapid economic growth during the period from 2000 to 2007, and afterward due to oil price increases, was not well translated into substantial growth of non-extractive sectors. Kazakhstan could employ strategies applied by Korean policymakers to sustain business and entrepreneurship development.
Topic:
Development, Bilateral Relations, Economic Growth, Economic Policy, Diversification, Trade, and Economic Cooperation
Political Geography:
Central Asia, Kazakhstan, Asia, and South Korea

12. Chinaʹs Startup Ecosystem Policy and Implications

Author:
Sangbaek Hyun, Hyojin Lee, Yunmi Oh, and Koun Cho
Publication Date:
07-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The Chinese government is moving toward a qualitative growth model in the era of “New Normal,” transitioning from the existing quantitative growth model. In line with the transition, since 2015 the Chinese government has been implementing a strategy of “mass entrepreneurship and innovation,” which involves building a startup ecosystem in order to solve youth unemployment and create new growth engines. Thanks to the success story of China’s BAT (Baidu, Alibaba, Tencent) and these new policies by the Chinese government, the startup entrepreneurship boom in China has grown rapidly, together with an explosive expansion of infrastructure and platforms for startups. To determine whether China’s economy can be transformed into an innovative economy, we need to carefully examine and evaluate China’s strategy and status of developing the startup ecosystem.
Topic:
Entrepreneurship, Economic Growth, Unemployment, and Startup
Political Geography:
China and Asia

13. Exchange Rate Flexibility, Financial Market Openness and Economic Growth

Author:
Il Houng Lee, Eunjung Kang, and Kyunghun Kim
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
With global recovery not in sight, along with calls for stronger structural reform, international policy coordination is again under spotlight. Correcting global imbalance would contribute towards closing the demand gap. Emerging economies in particular should allow greater exchange rate flexibility and not intervene in the foreign exchange market to reflect fundamentals. Yet, the impact of greater exchange rate flexibility is unclear as they also struggle to keep their growth momentum alive and hedge against greater exposure to potential capital reversal than ever before. With the loss of monetary policy independence, emerging markets (EMs) are running out of policy options. Against this background, unless international policy coordination is fundamentally recast, a comprehensive review of all emerging market economies’ policy options are in order, including both macro policy instruments, micro measures, and global safety net aimed at attaining the best possible solution to escaping global recession.
Topic:
Markets, Finance, Economic Growth, and Exchange Rate Policy
Political Geography:
Global Focus

14. Inclusive Growth and Structural Reforms in APEC Member Economies

Author:
Moonsung Kang and Geunhyo Kim
Publication Date:
12-2019
Content Type:
Special Report
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This paper empirically analyses the simultaneous impacts of structural re-forms - trade liberalization, capital account liberalization, and financial liberal-ization - on inclusive growth using panel data for 17 APEC member econ-omies covering years from 1970 to 2016. The results show that capital ac-count liberalization and growth of market capitalization are positively associ-ated with inclusive growth of APEC member economies, especially non-high-income member economies. Trade liberalization has a negative impact on inclusive growth only of the whole income group. We further find the robust evidence that the expansion of domestic credits provided by financial sectors had a negative impact on inclusive growth. These results give implica-tions that governments of APEC member economies need to design trade policies in a way of expanding outcomes of trade liberalization in a more inclusive way and of increasing extensive margins of export sectors. In addi-tion, they need to design policies to increase access to the financial sector for the poor and socially marginalized people.
Topic:
Reform, Economies, Economic structure, Economic Growth, and Inclusion
Political Geography:
Global Focus

15. Financial Market Integration and Income Inequality

Author:
Jae Wook Jung and Kyunghun Kim
Publication Date:
07-2018
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Benefits of financial market integration include cheaper and alternative op-tions of saving and borrowing for households and entrepreneurs. In the global financial market, asset choices for households widen so that individu-als can manage their idiosyncratic income risk more effectively. On the other hand, financial market integration makes investors who hold foreign assets more vulnerable to global financial shocks. In the recent financial crisis, finan-cial market distress which initially arose in the U.S. had an enormous impact on the peripheral countries. This example shows that the strong shock prop-agation occurs via integrated financial markets. The existing literature shows that financial market integration has a sizable impact not only on business cycles in the short run, but also on economic growth in the long run. However, there has been little attention to income distribution, specifically in related to the financial market integration. In this paper, we fill the void in the literature by focusing on the following two styl-ized facts: income inequality has been exacerbated in most countries over the past two decades, and the financial market has been integrated across coun-tries during the same period. In particular, we answer three research questions to investigate the relationship between the two facts. First, how does financial market integration affect income inequality? Second, how do financial market integration and financial market development interact to change income ine-quality? Third, what components do theoretical model need to explain the interaction effect of financial market development and integration on income inequality? We test hypotheses that the effect of financial market openness on inequality is conditional on the level of domestic financial market development when the financial market opens. An empirical study with panel data comprised of 174 countries for the period 1995-2017 finds that the overall effect of finan-cial integration on income inequality is nonlinear. Financial market integration creates the intensive and extensive margins of credit supply which may de-pend on the development level of financial market disproportionally. This paper uncovers a novel empirical evidence that financial market integration and financial market development interact to change income inequality. When other things are controlled, the effect of financial market integration on in-come inequality depends on financial market development. In a country with underdeveloped financial market, income inequality gets worse as financial market opens. On the other hand, when financial market is highly developed, the effect of financial market openness on income inequality is mostly insig-nificant in a statistical sense. The results are still valid with different measures of financial market development, integration, and income inequality. We check that the results are robust as an endogeneity issue among financial market development and integration is controlled. We also suggest some important structures for the conventional economic model to account for our empirical finding as theoretical implications. Based on these implications, extensions of the conventional small open economy model with financial constraints having suggested components such as het-erogeneous holdings of foreign assets across income and asset levels and entrepreneurial shocks will be necessary to understand an interaction of fi-nancial market openness and domestic market development on the distribu-tion of income in a country. Our finding also echoes that studying an eco-nomic mechanism in which economic growth, financial market outcomes, and inequality are endogenously determined.
Topic:
Development, Income Inequality, Financial Markets, Economic Growth, and Integration
Political Geography:
Global Focus

16. Vietnam’s Low National Competitiveness: Causes, Implications and Suggestions for Improvement

Author:
LE Quoc Phuong
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The WEF’s annual assessment using the GCI index in 2006-2017 shows that Vietnam’s national competitiveness has been low. Globally, Vietnam has ranked in the middle of economies surveyed. Regionally, Vietnam has been in the middle of ASEAN countries. With regard to the level of development, before 2015 Vietnam was in stage 1 (factor-driven), together with Cambodia, Laos and Myanmar. Since 2015 Vietnam has shifted toward a transition to stage 2 (efficiency-driven), which also includes Brunei and the Philippines. The country, however, has lagged behind Indonesia and Thailand (in stage 2), Malaysia (in transition to stage 3) and Singapore (in stage 3, innovation-driven). To complement the WEF’s assessment, this study provides an in-depth anal-ysis of main causes of Vietnam’s low competitiveness from the country’s perspective. These are structural problems due to its factor-based growth model, expansionary policies to aid growth, slowly improved business envi-ronment, low R&D expenditure, poorly performing higher education and under-developed infrastructure. Further, the research examines implications of these shortcomings for Vi-etnam. These are low productivity, diminishing GDP growth, middle income trap, macroeconomic instability, low business competitiveness, low technolo-gy level, low human capital quality and environmental degradation. Based on the analysis of the shortcomings and their consequences, policy measures are proposed to improve Vietnam’s competitiveness. Major sugges-tions include structural reforms to change the growth model from factor-based to productivity-based, raising technology level and enhancing human capital quality, improving the business environment, ensuring macroeconomic stability, upgrading infrastructure and learning from advanced economies.
Topic:
Infrastructure, Economic Growth, and Economic Policy
Political Geography:
Vietnam and Southeast Asia

17. Redefining Liquidity for Monetary Policy

Author:
Kyunghun Kim, Il Houng Lee, and Won Shim
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This paper proposes a monetary aggregate “Liquidity” that could serve as a useful indicator for gauging the appropriateness of monetary policy. If liquidity rises above a certain threshold, it is signaling that monetary policy is losing traction due to structural and other impediments even when the inflation gap remains open. This indicator supplements the financial cycle approach but adds value by providing a benchmark that is derived from the national account, and not based on its own trend. Over the last two decades, each time this measure rose above the threshold range, it was followed by a decline in GDP growth. The latter was greater when accompanied by a high physical asset value to GDP, e.g., an elevated property market.
Topic:
Monetary Policy, GDP, Economic Growth, Property, and Liquidity
Political Geography:
Asia, Korea, and Global Focus

18. KNOWLEDGE ECONOMY PYRAMID: Transforming Knowledge Value in Increasing Productivity and Competitiveness

Author:
Octavian Serban
Publication Date:
12-2018
Content Type:
Special Report
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The global economy’s landscape needs a new economic model where knowledge is used as a valuable resource to stimulate innovation, creativity, and entrepreneurship in order to increase productivity and competitiveness for sustainable growth as a premise for social welfare. The policymakers have to design the new public policy for productivity and competitiveness considering the Knowledge Economy frontier and to establish the institutional capacity to manage the knowledge perspective of development. The Knowledge Economy Pyramid model is a catalyst of knowledge ecosystems from education, research, technology, business, innovation, government and local communities, capable to create a collaborative environment with synergy effect: transforming knowledge value in increasing productivity and competitiveness. The Knowledge Economy Pyramid is a robust framework based on the four pillars of Knowledge Economy with three effective and powerful structures build upon: Knowledge Triangle, Triple Helix, and Smart Specialization. The main axis which unifies these structures is education-business and all the other stakeholders from research, science, technology, government, administration, clusters, and community are equal contributors to process the knowledge along the central shaft. Considering the Knowledge Economy Pyramid model, this research work is defining the coordinates of the public policy for productivity and competitiveness which will be implemented by the institutional capacity – Productivity and Competitiveness Center. This institution is a concrete and accurate representation of the Knowledge Economy Pyramid model with the scope to implement the principles of Knowledge Economy to increase productivity and competitiveness as outputs of the process. Moreover, the capacity building will provide the premises to conclude the new public policy into outcomes: standard of living, well-being, quality of life, and green growth. Knowledge Economy Pyramid provides a toolkit for policy/decision- makers to take action in order to improve the activity at any stage of development or maturity for an economy or institution related with productivity and competitiveness and it is able to measure the gap between actual development level and the knowledge edge. From an economic perspective, to analyze the concepts of productivity and competitiveness in Knowledge Economy, this study is a very complex work where the tangible is mixed with the intangible, human with technology, economic growth with people prosperity. This study is a “one-stop shop” for all the policy/decision-makers, leaders, representatives, officials, professors, researchers, specialists and practitioners, all engaged in the work to transform the traditional economic model into a new one, according to the Knowledge Economy Pyramid framework.
Topic:
Economic Growth, Innovation, Strategic Competition, Knowledge Production, Productivity, Knowledge Economy, and Specialization
Political Geography:
Global Focus