Week 5 Winter 08 - Weeks5 1 TheFirmsEnvironment Suppliers Customers Competitors Government firm Civic Entrepreneurs Universities and Colleges Local

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    1 Social Context of Business Weeks 5 The Knowledge-Based Economy and Innovation
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    2 The Firm’s Environment firm Competitors Suppliers Customers Universities and Colleges Local people Government Civic Entrepreneurs
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    3 The Knowledge Based Economy What is it? In 1996, the OECD defined the knowledge-based  economy: “The term knowledge-based economy” results from a  fuller recognition of the role of knowledge and technology  in economic growth.  Although knowledge has always  been a central component in economic development, the  fact that the economy is strongly dependent on the  production, distribution, and use of knowledge is now  being emphasized.”
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    4 The Knowledge Based Economy Some characteristics of the KBE: Technology is a given Globalism is here to stay Knowledge builds wealth People are the most important raw material There’s no such thing as a smooth ride Competition is relentless Alliances are the way to get things done Place still matters - but for different reasons
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    5 The Knowledge Based Economy TECHNOLOGY IS A GIVEN Technology is not an end in itself, but the means to  productivity gains, revenue growth and better connections Michael Porter: There are no such thing as a low tech  industry -- just low tech companies The network effect - the value of a unit rises with the  number of units in use
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    6 The Knowledge Based Economy GLOBALISM IS HERE TO STAY Companies, consumers and communities can gain  access to goods, services, capital, information and  technology often with the click of a mouse As foreign producers become more efficient they can sell  their products and services in Canada and the US at a  lower price -- companies, consumers and communities  will opt for the lower price (assuming comparable quality)  thereby selecting the imports -- domestic suppliers must  either adjust or shut down!
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    7 The Knowledge Based Economy KNOWLEDGE BUILDS WEALTH IDEAS matter more than ever before An economy driven by knowledge, relationships and  services relies more on intellectual assets and less on  physical assets Market value is derived from “intangibles” -- great product  design, market insight, management know-how e.g. e- Bay
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    8 The Knowledge Based Economy PEOPLE ARE THE MOST IMPORTANT RAW  MATERIAL (1) In the U.S., only about 20 percent of workers spend their  days making things The other 80 percent move things, process or generate  information, engage in research and design, or provide  services Manufacturing workers must now understand systems,  technology and sophisticated matters of supplies and  markets
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This note was uploaded on 12/08/2009 for the course TEFLER ADM1300 taught by Professor Koppel during the Fall '09 term at University of Ottawa.

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Week 5 Winter 08 - Weeks5 1 TheFirmsEnvironment Suppliers Customers Competitors Government firm Civic Entrepreneurs Universities and Colleges Local

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