The Economy is Knowledge-Driven: How to Thrive in the Economy

Every economy has grease that moves its gears. In the modern economy, our protagonist is a single factor that exists in our minds rather than on the earth itself. A factor that manifests itself the more you observe, learn, and experience. One that doesn’t require strength of the muscles but of the mind. A factor known as knowledge.

A knowledge-driven economy is one whose system of consumption and production is based on intellectual capital. Economic strength and development in an economy depend on the economy’s ability to capitalize on science and applied research. In this economy, as similarly stated, knowledge is the main capital that pushes economic growth.

Thus far, intellectual capital has brought about a transition from the industrial age to the internet age, carrying with it unthinkable economic and technological advancement. Humanity went from thinking "we weren’t meant to fly" to "we could blow up the earth if we tried" in less than 50 years.

This advancement also means a lot to the average worker, if we keep it simple. Intellectual capital is the raw material that raises your value and ensures your growth in today’s knowledge-driven economy. And in this article, we’re going to discuss a few strategies you can use to fully capitalize on and thrive on knowledge in today’s economy.

Understanding the Knowledge-Driven Economy

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To understand the knowledge-driven economy, you must know what it is about, how it functions, what kinds of opportunities to look forward to, and how it can affect you. You first have to consider what characteristics of the economy you can identify.

Some of the characteristics, such as the global diffusion of knowledge, the increase in demand for workers from STEM fields, and the presence of an innovation landscape, should tell you that knowledge is being easily moved across the globe, a background in STEM (Science, Technology, Engineering, and Mathematics) will give you an advantage, and you have to be creative and innovative.

If intellectual capital is the currency that holds value in the knowledge economy, then innovation and creativity have to be cultivated as part of the economy. After all, they are the foundations of new knowledge.

And how can you as a person cultivate both qualities?

That would be by developing a growth mindset.

Developing a growth mindset

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Before you lose interest at the sound of, if not the most abused word in the self-development niche, take some time to hear us out.

A growth mindset can be said to be a lot of things, but it is mainly the belief that basic abilities can be developed through dedication and hard work. If you have been an active part of the knowledge economy, you would have noticed that both of the mentioned factors are necessary to make any form of progress.

However, dedication and hard work are not the only values worth possessing to maintain a growth mindset. Learning and adaptability are also important values to uphold if you want to thrive in a knowledge economy.

With the constant improvement of science and research, the skills required to solve particular problems become outdated and are easily replaced with faster and more efficient means. A growth mindset will keep you informed and adaptable so that you can move with trends, be up-to-date with whatever changes occur in the economy, and properly adapt to them.

After you’ve built the mindset, the next thing to do is get your hands dirty by actually acquiring knowledge and utilizing it.

Acquiring and utilizing knowledge

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Knowledge is as vast as the world itself, so in order to seek and acquire knowledge that would be useful to the economy, you have to first identify relevant and in-demand skills. Once you can identify those skills, the next thing to do is acquire knowledge that can build them up.

There are many different ways to acquire knowledge, but the most popular method is seeking formal education. Formal education is simply education acquired from schools and universities. While it costs a lot, good formal education will give you invaluable knowledge and experiences, and lifelong proofs of your capabilities in the form of certifications.

You could also leverage online learning platforms. Online platforms are more specific to the skills needed to thrive while working with the internet. However, it is cheap, highly specific, and more easily accessible. If you seek to learn highly niche skills, then leveraging online learning platforms is the right way to go.

Online platforms have been gaining popularity recently thanks to companies like Google and Microsoft, which have been employing workers who simply have the skills they require and the online certificates needed to prove their education without actually having university certificates. Nowadays, getting employed doesn’t necessarily rely on what or where you studied, but more on what skills you have to offer and how you can solve a company’s problem, which is why creativity and innovation are necessary values you must have to raise your chances of success.

Cultivating creativity and innovation

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It makes complete sense that in a knowledge economy, creativity and innovation are required to stand above the competition, as they are the foundation of new and unique knowledge and information.

Innovation and creativity go hand in hand because finding ways to be innovative requires creativity. On the other hand, creativity is usually considered an innate talent, however, it can be acquired by gaining experience and collaborating with other people across different fields, to name a few.

Working with other people gives you insight on how to solve tasks that you would originally find difficult or larger than your capacity. If you do this as time goes on, you become accustomed to solving difficult problems, giving you a number of solutions in your arsenal. No matter what the situation you find yourself in looks like, you will find a creative way around it.

Another important way to stay creative and innovative in the knowledge economy is to embrace new technology and tools that enhance productivity. There is no point in going far and wide seeking answers when there is a tool that’s only a click away. Always prioritize time and efficiency.

Balancing specialization and generalization

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Now that you’ve learned how to acquire and utilize knowledge, the next thing to do is create a healthy balance between specialization and generalization. It is easy to fall into the rabbit hole of learning anything you have access to; however, that is not a good idea. Always remember that you are prioritizing time and efficiency.

A good way to manage that is to work towards attaining the skills you need for the role you want to apply for while having basic knowledge of related fields. It is much easier to apply for roles when your area of expertise is very specific. It is also easier to gain experience that way.

Portfolio projects are a simple way to rapidly grow your skills while developing a good knowledge base. They are simple projects you do to build your portfolio. With projects like that, you get to manage as much as you give yourself room to handle. Embark on a few projects, play around with them a bit, and see how far you can go with them.

Developing strong communication skills

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Be it a portfolio project or a real assignment, you cannot handle it all by yourself. You’re going to need some form of assistance or expert opinion. Having good communication skills is going to help you bring the team you need together, and it will help you fit perfectly into the role designated for you at your place of work.

It also helps to have empathy and pay attention in interpersonal relationships. This gives you the chance to learn from what people tell you as well as from their experiences. It is the best way to optimize learning from daily human interactions.

When developing communication skills, you should also consider leveraging digital communication platforms such as Facebook, Twitter, and LinkedIn. They are powerful tools that shorten the gap between you and the experts you would like to add to your network.

Building a Strong Professional Network

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LinkedIn, for example, has a wonderful tool that helps build a professional network. Such a network can help you gain information, improve your chances of getting employed, and increase your chances of overall success.

Apart from using social media platforms, you can build your network by participating in industry events and conferences. You could also do volunteer work. While these methods are a lot more tedious, they have their advantages over online platforms. If you’re outgoing, then you will have a better chance to pitch yourself and your skillset to potential clients and employers.

In summary, here are the steps you need to take to thrive in a knowledge-driven economy:

• Understanding the knowledge driven economy

• Developing a growth mindset

• Acquiring and utilizing knowledge

• Cultivating creativity and innovation

• Balancing specialization and generalization

• Developing strong communication skills

• Building a strong professional network

The knowledge economy encourages innovation and calculated movement, which is why it is important to strategize and take a proactive approach to achieving your goals. On the outside, it may look like a daunting and confusing space to get involved with. However, it becomes easier to navigate as you take time to learn more and understand what the economy is all about.