KNOWLEDGE - KEYSTONE OF THE MODERN ECONOMY
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1 KNOWLEDGE - KEYSTONE OF THE MODERN ECONOMY Veselin Draskovic, Radislav Jovovic Mimo Draskovic and Borut Jereb Celje Osijek Czestochowa Kotor 2013
2 Veselin Draskovic, Radislav Jovovic, Mimo Draskovic and Borut Jereb KNOWLEDGE - KEYSTONE OF THE MODERN ECONOMY /Electronic edition/ Publication available at: Reviewers: Yochanan Shachmurove, Evgeny Popov, and Miomir Jaksic Lector: Magdalena Reljic Illustration: Miodrag Kankaras Design by: Milojko Pusica Published by SPH Scientific Publishing Hub founded by University of Maribor, Faculty of Logistics, Celje, Slovenia, J.J. Strossmayer University of Osijek, Faculty of Economics in Osijek, Croatia, Czestochowa University of Technology, Faculty of Management, Poland, and University of Montenegro, Maritime Faculty of Kotor, Montenegro Editor in Chief: Prof. dr Dušan Radonjić This work is licensed under a Creative Commons Attribution-NonCommercial- NoDerivs 3.0 Unported License. CIP - Cataloguing in Publication National and University Library, Ljubljana 001:33 KNOWLEDGE - keystone of the modern economy / Veselin Draskovic... [et al.] ; [illustration Miodrag Kankaras]. - 1st ed. - Celje [etc.] : SPH - Scientific Publishing Hub, 2013 ISBN ISBN (pdf) 1. Drašković, Veselin
3 CONTENTS PREFACE Part 1: THE NEW ECONOMY 1 I 1. THE KNOWLEDGE SOCIETY Box 1 - What is Knowledge Society? Box 2 - Sustainability Paradigm, Knowledge Society and Sustainability Metrics Box 3 - Understanding the Knowledge Society 2. PARADIGMATICS OF NEW ECONOMY 2.1 Economic Theory and the New Economy 2.2 The New Economy and Progress 2.3 Paradigm of the New Economy Skills 2.4 The New Economy and the Choice 2.5 The Characteristics of the New Economy 2.6 Information as a Specific Resource 3. OLD AND NEW ECONOMY 3.1 Information Asimmetry 3.2 Transaction costs and information 3.3 Information Technology and Economic Performance 3.4 Analysis of the Differences Between the Old and New Economy 4. THE NETWORK ECONOMY Box 4 - Exploring Network Economics 4.1 A Network Clustering of the Economy 4.2 The Process of Value Chain in the Network Economy Box 5 - Transparency in the Networked Economy
4 IV KNOWLEDGE KEYSTONE OF THE MODERN ECONOMY Part 2: THE KNOWLEDGE ECONOMY PARADIGMATISM OF THE KNOWLEDGE ECONOMY Box 6 - Knowledge Economy Form and History 1.1 Concept, Types, Characteristics and Importance of Knowledge Box 7 - What is the Impact of Knowledge Set Free? 1.2 Innovations Box 8 - The Innovation Death Spiral Box 9 -: Innovation Models Box 10 - Management Innovation 1.3 Process of Innovation 1.4 Innovations and knowledge economy 1.5 Institutional effect on innovations 1.6 Montenegro and Croatia Case 2. CONCEPT OF SOCIAL CAPITAL Box 11 - Definitions of Social Capital Box 12 - Social Capital: Prospects for a New Concept 3. CONCEPT OF INTELECTUAL CAPITAL Box 13: Impacting Future Value: How to Manage Your Intellectual Capital Box 14 - Intellectual Capital Statement Box 15 - Intellectual Capital: Current Issues and Policy Implications Box 16 - Intellectual Capital: Defensive and Offensive Roles 3.1 Skandia Navigator 3.2 Components of Intellectual Capital 3.3 Capital Structure of the Company in the Knowledge Economy Part 3: THE KNOWLEDGE MANAGEMENT CONCEPT OF KNOWLEDGE MANAGEMENT Box 17 - Multidisciplinary Nature of KM Box 18 -Individuation 2. MODELS OF KNOWLEDGE MANAGEMENT 2.1 Models of Knowledge Transformation 2.2 The Knowledge Creation 2.3 Organizational Learning
5 Contents V Box 19: A Conceptual Model of LO and KM 2.4 Strategic Knowledge in the Function of Developing Dynamic Capabilities of the Company 3. THE KNOWLEDGE APPLICATION 3.1 Bloom s Taxonomy of Learning Objectives 3.2 The Knowledge Application at Various Levels 3.3 The Knowledge Reuse 4. INNOVATION OF THE KNOWLEDGE PROCESS Box 20: Innovation processes and knowledge processes 4.1 The Knowledge Flow and its Dynamics SUMMARY 237 REFERENCES 241 INDEX REVIEWS 263 LIST OF FIGURES 1.1 MARKET EQUILIBRIUM FOR NETWORK GOODS 1.2 HIERARCHICAL ORGANIZATION AND NETWORK CONNECTIVITY 1.3 THE DIFFERENCE BETWEEN THE INDUSTRY AND NETWORK ECONOMICS 1.4 MARKET EKONOMY MODEL AND NETWORK EKONOMY MODEL 1.5 MASS PRODUCTION OF KNOWLEDGE: EVOLUTION OF MAIN FACTORS OVER TIME 1.6 RESOURCES AND CAPABILITIES OF A FIRM 1.7 A CORE COMPETENCE AS A UNIQUE BUNDLE OF INTANGIBLE ASSETS 1.8 BUSINESS PROCESS VALUE CHAIN 2.1 LEVELS OF ATTENTION GIVEN TO THE KNOWLEDGE 2.2 STRUCTURE OF THE NEW PARADIGM OF KNOWLEDGE 2.3 HIERARCHY OF KNOWLEDGE 2.4 THE PROCESS OF CREATING KNOWLEDGE - ONTOLOGY ASPECT 2.5 ESSENCE OF INNOVATION 2.6 THE PROCESS OF INNOVATION 2.7 MODELS OF INNOVATION
6 VI KNOWLEDGE KEYSTONE OF THE MODERN ECONOMY 2.8 MODEL OF SUSTAINABLE DEVELOPMENT STRUCTURE IN THE KNOWLEDGE ECONOMY 2.9 DEVELOPMENT FORMULA OF KNOWLEDGE ECONOMY 2.10 SOCIAL CAPITAL FRAMEWORK 2.11 LEVELS OF SOCIAL CAPITAL 2.12 ELEMENTS OF SOCIAL CAPITAL 2.13 CONCEPTUALIZATION OF SOCIAL CAPITAL (DEVELOPED BY GROOTAERT AND VAN BASTELAER) 2.14 CONCEPTUAL FRAMEWORK: LEVELS AND TYPES OF SOCIAL CAPITAL 2.15 CONCEPTUAL FRAMEWORK: LEVELS AND TYPES OF SOCIAL CAPITAL 2.16 NETWORK OF RELATIONSHIP: AN ENGAGING EXPERIENCE 2.17 COMMUNITY SOCIAL CAPITAL MODEL 2.18 SOCIAL CAPITAL IS ONE OF THE THREE MAJOR BUSINESS CATALYSTS 2.19 SKANDIA NAVIGATOR 2.20 SKANDIA S CLASSIFICATION OF THE INTELLECTUAL CAPITAL 2.21 COMPONENTS OF INTELLECTUAL CAPITAL 2.22 RELATIONSHIP AMOGN STRUCTURAL ELEMENTS OF INTELECTUAL CAPITAL 2.23 RELATIONSHIP AMONG INTELECTUAL CAPITAL, INTANGIBLE ASSETS AND INTELLECTUAL PROPERTY 2.24 INTELLECTUAL CAPITAL FRAMEWORK: ITS RELATIONSHIP TO MARKET VALUE 2.25 THE INTEGRATION PYRAMID OF INTELLECTUAL CAPITAL 2.26 LOGICAL MODEL OF KNOWLEDGE MANAGEMENT IN THE FIRM 3.1 INTERACTION BASCIC FORMS OF IC 3.2 KNOWLEDE MANAGEMENT GOAL PYRAMID 3.3 DIAMOND OF KNOWLEDGE 3.4 HUMAN, ORGANIZATIONAL, AND TECHNOLOGICAL FACTORS OF KNOWLEDGE MANAGEMENT 3.5 LIFE CYCLE OF THE KNOWLEDGE MANAGEMENT AND ORGANIZATION 3.6 MODEL FOR KNOWLEDGE & COMPETENCE MANAGEMENT 3.7 SPIRAL MODEL OF KNOWLEDGE CREATION 3.8 THE COMBINED MODEL OF KNOWLEDGE - CYCLIC (PHASE 4), AND THE SPIRAL OF KNOWLEDGE 3.9 ORGANIZED LEARNING MODEL 3.10 INTEGRATED KNOWLEDGE MANAGEMENT CICLE 3.11 KNOWLEDGE HIERARCHY 3.12 KEY ELEMENTS OF KNOWLEDGE BASED ENTERPRISE
7 Contents VII 3.13 NONAKA KNOWLEDGE FLOW THEORY 3.14 EXTENDED MODEL WITH KNOWLEDGE FLOWS LIST OF BOX FIGURES B1 KNOWLEDGE AND SUSTAINABILITY INDEX B2 ALICT S PILLARS OF THE KNOWLEDGE SOCIETY B3 POSITIVE FEEDBACK B4 NETWORKED ECONOMY B5 TRANSPARENCY IN THE NETWORKED ECONOMY B6 CHANGING ECONOMICS OF THE INFORMATION-BASED ECONOMY B7 KNOWLEDGE FLOW CYCLE B8 DOMAINS OF KNOWING B9 WHAT IS KNOWLEDGE B10 COMPETITIVE INNOVATION MATRIX B11 DIFFERENT TYPES OF INNOVATION NETWORKS B12 MANAGEMENT INNOVATION PROCESS FRAMEWORK B13 A CONCEPTUAL MODEL OF SOCIAL CAPITAL B14 CLASSIFICATION OF INTELLECTUAL CAPITAL B15 FIVE-STEP INTELLECTUAL CAPITAL MANAGEMENT MODEL B16 UNDERPINS CAPABILITIES AND CORE COMPETENCIES B17 VISUALIZING THE RELATIVE IMPORTANCE OF KEY RESOURCES B18 ICS STRUCTURAL MODEL B19 CONCEPTUAL ROOTS OF INTELLECTUAL CAPITAL B20 DETERMINING THE ROLES FOR INTELLECTUAL CAPITAL B21 INTERDISCIPLINARY NATURE OF KNOWLEDGE MANAGEMENT B22 DEVELOPMENTAL PHASES IN KM HISTORY B23 INDIVIDUATION B24 A CONCEPTUAL MODEL OF LO AND KM LIST OF TABLES 1.1 INDUSTRIAL AND NEW (INFORMATION) ECONOMY 1.2 KNOWLEDGE ECONOMY AND MASSIVE ECONOMY 1.3 THE DIFFERENCE BETWEEN OLD AND NEW ECONOMY
8 VIII KNOWLEDGE KEYSTONE OF THE MODERN ECONOMY 1.4 DIFFERENCES BETWEEN THE INDUSTRIAL ECONOMY AND THE KNOWLEDGE ECONOMY 1.5 DIFFERENCE BETWEEN NETWORK AND HIERARCHICAL ORGANIZATIONAL STRUCTURE 1.6 KEI FOR SELECTED COUNTRIES IN CHARACTERISTICS OF TRADITIONAL AND INFORMATIONAL RESOURCES 2.2 COMPARATIVE VIEW OF KEI AND GCI INDEX (FOR INSTITUTIONS) BASED ON THE POSITION IN THE RANK LIST IN SOCIAL CAPITAL DEFINITION 2.4 DEVELOPMENT OF I.C. CONCEPTION 2.5 YEARS, AUTHORS AND WOKRS IMPORTANT FOR DEVELOPMENT I. C. CONCEPTION 2.6 MARKET VALUE OF THE ORGANIZATION STRUCTURE 2.7 COMPONENTS OF INTELLECTUAL CAPITAL 2.8 DETAILED STRUCTURE OF I.C. FIRM 2.9 COMPARATIVE REVIEW OF THE BASIC INTERPRETATION OF I. C CLASSIFICATION OF INTELLECTUAL CAPITAL 2.11 TOBINS COEFFICINET FOR SELECTED MONTENEGRIN FIRMS 2.12 THE FLEXIBLE ENTERPRISE 3.1 VARIOUS SCHOOLS OF KNOWLEDGE MANAGEMENT 3.2 THE PROCESS OF CONSTRUCTION; USING, TRANSFORMING AND IMPLEMENTING THE KNOWLEDGE 3.3 ORGANIZATIONAL LEARNING AND MARKET POSITIONING 3.4 BLOOM S COGNITIVE DOMAIN TAXONOMY 3.5 REVOLUTIONARY STEPS IN STORING DATA LIST OF BOX TABLES B1 PROGRESS IN CONCEPTUALIZING INNOVATION: ROTHWELL S FIVE GENERATIONS OF INNOVATION MODELS B2 TYPOLOGY OF INNOVATION NETWORKS TYPE OF INNOVATION PRIMARY PURPOSE / INNOVATION TARGET NETWORK B3 DEFINITIONS OF SOCIAL CAPITAL
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