The Importance of Knowledge for Wellbeing of Society in the Contemporary World
DOI:
https://doi.org/10.2298/FID1704136MKeywords:
Globalization, knowledge, education, wellbeing, competitiveness, migrationsAbstract
Following the recent wave of globalization, the possession of different types of knowledge became even more important for economic development than the possession of physical resources. The ability of a society to adopt existing and create new knowledge thus gained fundamental importance for its wellbeing. In this paper, we identify important aspects of the relationship between education, creation of knowledge, economic growth, as well as both material and immaterial wellbeing of a society. We describe potential problems that prevent societies from maximizing the benefit from the effort its members invest in acquiring knowledge. The problems of failure of the national markets for education as well as the global migrations which lead to drain of knowledge towards economically highly developed countries are especially analyzed. In the long run, they lead to a decline in both national competitiveness and different aspects of the immaterial wellbeing. As the basis for solving these problems we propose a combination of economic theory and the concept of solidarity between more and less developed countries, individuals and societies of their origin, respecting the free will of individuals.
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Ramachandran, J. Manikandan, K.S. and Pant, A. (2013), “Why conglomerates thrive (Outside the US)“, Harvard Business Review 91(12): 110-119.
Romer, Paul (1990), “Endogenous technological Change”, Journal of Political Economics 89(5): S71-S102.
Rugman, Alan and Verbeke, Alain (2003), „Internationalization and Strategic Management Perspective“, Journal of International Business Studies 34(2): 125-137.
Rugman, M. Alan and D’Cruz, R. Joseph (1993), “The Double Diamond Model of International Competitiveness: The Canadian Experience”, Management International Review 33(2): 17–39.
Rugman, M. Alan and D‘Cruz, R. Joseph (1995), “The Theory of the Flagship Firm“, European Management Journal 15(4): 403-412.
Sala-i-Martin, Xavier Gernot, Deppelhofer and Ronald, I. Miller (2004), “Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach”, American Economic Review 94 (4): 813-835.
Sheksnia, Svetislav (1998), „Western Multinationals’ Human Resource Practices in Russia“, European Management Journal 16(4): 460–465.
Skeldon, Ron (2005), „Globalization, Skilled Migration and Poverty Alleviation: Brain Drains in Context“, Sussex, Working paper T15: 1-39.
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Vernon, Raymond (1966), “International Investment and International Trade in the Product Cycle“, The Quarterly Journal of Economics 80(1): 190-207.
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Barney, Jay (1991), “Firm Resources and Sustained Competitive Advantage“, Journal of Management 17(1): 99 – 120.
Barro, J. Robert (1991), “Economic Growth in a Cross Section of Countries”, The Quarterly Journal of Economics 106 (2): 407-443.
Barro, J. Robert and Xavier Sala-i-Martin (1995), Economic Growth. NY: McGraw-Hill.
Beata, Smarzynska Javorcik (2004), “Does Foreign Direct Investment Increase the Productivity of Domestic Firm? In Search of Spillovers through Backward Linkages“, The American Economic Review 94(4): 605–627.
Benhabib, Jess and Mark. M. Spiegel (1994), “The Role of Human Capital in Economic Development: Evidence from Aggregate Cross-Country Data“, Journal of Monetary Economics 34(2): 143-74.
Bils, Mark and Peter J. Klenow (2000), “Does Schooling Cause Growth?”, The American Economic Review 90 (5): 1160-1183.
Booz & Co, „The Eight Overarching China Automotive Trends That Are Revolutionizing the Auto Industry“, (internet) available at: https://www.strategyand.pwc.com/media/file/The_Eight_Overarching_China_Automotive_Trends_en_part_1.pdf (viewed 2 August, 2017).
Boulet Gaj (2015), (internet) available at: https://elearningindustry.com/difference-between-knowledge-and-skills-knowing-not-make-skilled (viewed 2 August, 2017).
Cohen, Daniel and Marcelo Soto (2007), “Growth and human capital: good data, good results.”, Journal of Economic Growth 12:51–76.
Davies, Howard and Ellis, Paul (2000), “Porter’s Competitive Advantage of Nations’: Time for Final Judgement?”, Journal of Management Studies 37(8): 1189–1213.
Dunning, H. John (1993), “Internationalizing Porter’s Diamond”, Management International Review 33 (special issue): 7-15.
Dunning, H. John (2000), „The Electic Paradigm as an Envelope for Economic and Business Theories of MNE Activity“, International Business Review 9 (2): 163–190.
Foss, J. Nicolai (1996), “Research in Strategy, Economics and Michael Porter”, Journal of Management Studies 33(1): 1-24.
Grant, M. Robert (1991), “Porter’s Competitive Advantage of Nations’: An Assessment”, Strategic Management Journal 12(7): 535-548.
Hanushek, Eric A. and Ludger Woessmann (2008), “The Role of Cognitive Skills in Economic Development, Journal of Economic Literature 46(3): 607–68.
Hanushek, Eric A. and Ludger Woessmann (2012), “Do better schools lead to more growth? Cognitive skills, economic outcomes, and causation”, Journal of Economic Growth 17:267–321.
Immelt, R. Jerrfy, Govindarajan, Vijay and Trimble, Chris (2009), “How GE is Disrupting Itself”, Harvard Business Review, 87(10): 56-65.
Kaličanin, Đorđe (2001), Ekonomski rečnik, Beograd: CID Ekonomski fakultet.
Krueger, Alan B. and Mikael, Lindahl (2001), „Education for Growth: Why and for Whom?“, Journal of Economic Literature 39(4): 1101-1136.
Kupets, Olga (2015), „Skill mismatch and overeducation in transition economies.“, IZA World of Labor (internet) available at: https://wol.iza.org/articles/skill-mismatch-and-overeducation-in-transition-economies (viewed 2 August, 2017).
Laubi Sharlin (2013), “The Difference between Knowledge, Skills and Abilities” (internet) available at: https://www.hrbartender.com/2013/recruiting the-difference-between-knowledge-skills-and-abilities/ (viewed 2 August, 2017).
Linch, Richard and Jin, Zongqui (2016), “Knowledge and Innovation in Emerging Market Multinationals: The Expansion Paradox“, Journal of Business Research 69(5): 1593-1597.
Lucas, Robert (1988), “On the Mechanics of Economic Development”, Journal of Monetary Economics 22(1): 3-42.
Luo, Yadong, Qiuzhi, Xue and Binjie, Han (2010), “How Emerging Market Governments Promote Outward FDI: Experience from China“, Journal of World Business 45(1): 68-79.
Luo, Yadong and Tung, L. Rosallie (2007), “International Expansion of Emerging Market Enterprises: A Spring Board Perspective”, Journal of International Business Studies 38(4): 481–498.
Markovic, Dusan Rakita, Branko and Filipovic, Davor (2015), “Strategic Importance of Cross – Border Acquisitions for Emerging Markets Multinationals,” in Neostrategic Management, Switzerland: Springer International Publishing, pp. 189–201.
Marković, Dušan (2017), Međunarodne akvizicije – globalni izazovi i efekti u Srbiji. Beograd: CID Ekonomski fakultet.
Meir, Comte Elvire (2012), Knowledge Transfer and Innovation for Western Multinational Company in Chinese and Indian Technology Clusters. Munchen: Rainer Hampp Verlag.
Meyer, Klaus and Sinani, Evis (2004), “Spillover of Technology Transfer from FDI: The Case of Estonia” Journal of Comparative Economics 32(3): 445–466.
Michael, Porter (1998), “Clusters and the New Economics of Competition”, Harvard Business Review 76(6): 77-90.
Mingyong, Lai, Shuijun, Peng and Qun Bao (2006), “Technology Spillovers, Absorptive Capacity and Economic Growth“, China Economic Review 17(3): 300-320.
Mlađan Mrđan i Marković Dušan, (2016) , “Problem neuspeha tržišta u Srbiji prilikom prelaska na tržišnu privredu”, u Pravci strukturnih promena u procesu pristupanja Evropskoj Uniji, Beograd: Institut ekonomskih nauka, pp.130-147.
Moon, H. Chang, Rugman, M. Alan and Verbeke, Alain (1998), “A Generalized Double Diamond Approach to the Global Competitiveness of Korea and Singapore”, International Business Review 7(2): 135-150.
Mudambi, Ram (2008), “Location, Control and Innovation in Knowledge Intensive Industries”, Journal of Economic Geography 8(5): 699-725.
N1 (2016), (internet) available at: http://rs.n1info.com/a167719/Biznis/Srbiji-potrebno-oko-15.000-IT-strucnjaka.html (viewed 2 August, 2017).
Pananond, Pavida (2015), “Breakout Multinationals: Emerging Market Multinationals in Global Value Chains”, in Handbook of Emerging Market Multinational Corporations, ed. M. Demirbag, and A. Yaprak, Massachusetts: Edvard Elgar Publishing: pp. 91–110.
Patrinos, Harry Anthony (2016), „Estimating the return to schooling using the Mincer equation“, IZA World of Labor (internet) available at: https://wol.iza.org/uploads/articles/278/pdfs/estimating-return-to-schooling-using-mincer-equation.pdf (viewed 2 August, 2017).
Porter, E. Michael (1990), “The Competitive Advantage of Nation”, Harvard Business Review 68(2): 73-93.
Prahald, C.K. and Hammond, Allen (2002) “Serving the World’s Poor” Harvard Business Review 80(9): 48-57.
Pindyck, Robert S. i Daniel L. Rubinfeld (2001), Microeconomics 5th ed. Prentice Hall: Upper Saddle River.
Ramachandran, J. Manikandan, K.S. and Pant, A. (2013), “Why conglomerates thrive (Outside the US)“, Harvard Business Review 91(12): 110-119.
Romer, Paul (1990), “Endogenous technological Change”, Journal of Political Economics 89(5): S71-S102.
Rugman, Alan and Verbeke, Alain (2003), „Internationalization and Strategic Management Perspective“, Journal of International Business Studies 34(2): 125-137.
Rugman, M. Alan and D’Cruz, R. Joseph (1993), “The Double Diamond Model of International Competitiveness: The Canadian Experience”, Management International Review 33(2): 17–39.
Rugman, M. Alan and D‘Cruz, R. Joseph (1995), “The Theory of the Flagship Firm“, European Management Journal 15(4): 403-412.
Sala-i-Martin, Xavier Gernot, Deppelhofer and Ronald, I. Miller (2004), “Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach”, American Economic Review 94 (4): 813-835.
Sheksnia, Svetislav (1998), „Western Multinationals’ Human Resource Practices in Russia“, European Management Journal 16(4): 460–465.
Skeldon, Ron (2005), „Globalization, Skilled Migration and Poverty Alleviation: Brain Drains in Context“, Sussex, Working paper T15: 1-39.
Stojkov (2016), (internet) available at: https://startit.rs/ftn-data-science-privreda-poziv/ (viewed 2 August, 2017).
Vernon, Raymond (1966), “International Investment and International Trade in the Product Cycle“, The Quarterly Journal of Economics 80(1): 190-207.
Webber, Douglas (2014), „Is the return to education the same for everybody?“ IZA World of Labor (internet) available at: https://wol.iza.org/articles/is-the-return-to-education-the-same-for-everybody/long (viewed 2 August, 2017).
Yamada, G. (2015)„The boom in university graduates and the risk of underemployment“. IZA World of Labor (internet) available at: https://wol.iza.org/articles/boom-in-university-graduates-and-risk-of-underemployment/long (viewed 2 August, 2017).
Yongbok, Jeon, Byung, Il Park and Pervez, N. Ghauri (2013), “Foreign Direct Investment Spillover Effects in China: Are They Different Across Industries with Different Technological Levels?“, China Economic Review 26 (september): 105-117.
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Published
23.12.2017
How to Cite
Mrđan M. Mlađan, D. Z. M. (2017) “The Importance of Knowledge for Wellbeing of Society in the Contemporary World”, Filozofija i društvo/Philosophy and Society. Belgrade, Serbia, 28(4), pp. 1136–1159. doi: 10.2298/FID1704136M.
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STUDIES AND ARTICLES
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Articles published in Philosophy and Society are open-access in accordance with the CC BY-NC-ND 4.0 License.
