Write a paper to compare and contrast an industrial economy with an innovation economy.
Additionally, discuss the implications of an innovative economy on your organization or an organization with which you are familiar.
Innovation Economy vs. Industrial Economy
From last two hundred years industrial economy is in existence along with neo-classical economies that has distinguished only two prominent factors of production, which are labour and capital, but in present this position of the world is changing dramatically. In present time and environment factors like information and knowledge are interchanging capital and labor as the most important wealth-creating assets, just as the latter two interchanged land and labor 200 years back (Knowledge Based Economy, 2009).
In addition to the factors like information and knowledge, technological evolutions of the 20th century had also transmuted the number of wealth-creating work from physically-grounded to knowledge-grounded (Emergence of Knowledge Economy, 2007). Currently, technology and knowledge had become key factors of production. This technology and knowledge driven economy is known as innovation economy in contrast to the old industrial economy which was directed by labor and capital. The innovation economy is also known as knowledge driven economy.
In this present innovation economy, the increased mobility of information and the global work force, knowledge and expertness can be channelized in a flash all over the world, and any reward benefitted by a company can be extinguished by competitive meliorations overnight. In this new economy, the companies can attain comparative advantage along with process of innovation that will ...
Industrial and innovative economies are compared and contrasted. The solution contains a discussion of the implications of innovative economies on organizations.