Importance of KBD for Sustainable Success in a Digitized World

Importance of KBD for Sustainable Success in a Digitized World 1
IMPORTANCE OF KBD FOR SUSTAINABLE SUCCESS IN A DIGITIZED WORLD
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Importance of KBD for Sustainable Success in a Digitized World 2
Abstract
The global economy is changing and the application of human knowledge and creativity is
becoming increasingly important. Wealth creation through the application of human knowledge,
for instance, has already outpaced creation of wealth through extraction and processing of natural
resources which indicates that Knowledge-based development (KBD) has been vital for
sustainable development. The concepts of knowledge city convey a collection of cultural,
technological, scientific, academic and innovation potentials in cities and regions that foster
economic growth. KBD has acted as a framework of collaborative development that offers
guidelines to the public, academic, and private sectors in developing future strategies capable of
attracting and retaining talent in addition to establishing knowledge intensive policies on urban
and regional centers. KBD has made it possible to acquire the supporting framework and policies
that leverage the process for improved development gains and act as a guide to a sustainable
pattern. To sum it up, knowledge-based development has become vital to sustainable success in
this digitized world where growth and productivity have come to be dependent on knowledge.

Importance of KBD for Sustainable Success in a Digitized World 3
Importance of KBD for Sustainable Success in a Digitized World
The global economy is changing and the application of human knowledge and creativity
is becoming increasingly important. Creation of wealth through the application of human
knowledge, for instance, has already outpaced creation of wealth through extraction and
processing of natural resources (Yigitcanlar and Bulu 2015, p.90). Book values in recent years
have greatly been exceeded by market values of private corporations. Business corporations'
capacity to earn now relies more on its intangible knowledge assets over tangible assets. With
increased digitalization of the world, knowledge has become vital for sustainable development.
Revolution in information and communication technology and globalization has created
atomized economies and societies (Yigitcanlar and Bulu 2015, p.90). And with the behavior of
information and knowledge as economic goods, dramatic changes are arising in the value
creation modalities (Asongu 2017, p.13). Knowledge-based development has become vital to
sustainable success in this digitized world where growth and productivity have come to be
dependent on knowledge. This paper describes the significance of KBD for sustained success in
a digitized world.
Definition of Knowledge Based Development (KBD) at a Macro Level
KBD is a technical and theoretic field formed from a movement and a disciple. The
discipline is the Growth Theory (GT) and the movement of origin is the Knowledge
Management (KM) (Tchamyou 2017, p.1200). Growth Theory lays emphasis on the
understanding of the principles of macroeconomic which defines upsurges in total production in
regions and countries. Knowledge Management, on the other hand, arose in business as a
response to the desire to identify, value, and capitalize knowledge-based factors of values
(Tchamyou 2017, p.1200). A knowledge-based development (KBD) like knowledge

Importance of KBD for Sustainable Success in a Digitized World 4
management has evolved considerably in its existence. KDB programs distinguish from KM
approaches based on the focus of their actions of development that is on the understanding of
knowledge. The basic understanding of knowledge is that it is an object or a capacity transfer in
the age of knowledge management practice (Secundo et al, 2015). KBD approach can be defined
based on three levels which include social knowledge substructure, expansion of human capital,
and social capital system expansion (Secundo et al. 2015, p.280). When these three approaches
are combined, KBD can be defined as a substructure to enhance the social stock of knowledge, a
strategy for economic development and a policy to satisfy the flow of knowledge.
Knowledge Cities, And Innovation Engines
Knowledge-based development has been evident in the day to day growth at urban,
regional, national, and supranational levels. However, evidence suggests that success comes at a
cost much more than goodwill (Del Rosario González Ovalle et al, 2004, p.120). For business
sustainability in urban centers, three pillars of corporate sustainability are essential. These are the
environmental pillar, the social pillar, and the economic pillar. The three pillars are formally
regarded as people, planet, and profits (Oiu and Wu, 2017). The pillar that often attains the most
attention is the environmental pillar as the focus of most companies lies on carbon footprints
reduction and waster packaging. The social pillar is defined by the concept of social license
where a viable business needs to be supported and approved by employees and stakeholders. The
economic pillar of sustainability is where organizations believe they are on firm ground. This
pillar is on the notion that for sustainability to be realized, profitability is necessary (Del Rosario
González Ovalle et al, 2004, p.121). Other activities under this pillar include risk management,
proper governance, and compliance.

Importance of KBD for Sustainable Success in a Digitized World 5
In the modern media, the concepts of knowledge city convey a collection of cultural,
technological, scientific, and academic and innovation potentials in cities and regions that foster
economic growth. Recent decades have witnessed an increase in the role of dominant cities in
nations that acquired industrialized economies as the generation and use of knowledge achieved
localization (Carrillo, 2015). These cities have had predominant service oriented activities as
well as a very qualified workforce. When you come right down to it, you realize that despite the
difference in the development trends of cities, a trend is emerging where a number of cities turn
to knowledge-based as opposed to resource-driven industrial fields. There has been a shifted
focus towards a conducive environment for highly qualified human resources by city regions at
the expense of the development of a business environment (Carrillo 2015, p.15). These regions
have attempted to establish a living space capable of attracting and retaining talented people
aimed at creating a symbolic knowledge base (Yigitcanlar 2017, p 3). This knowledge-based
development is what defines a city's growth path. The question raised by KBD, therefore, is on
the type of improvements needed to integrate a city into a knowledge-based economy. The
answer to this question can be obtained from the model of knowledge-based urban development
(KBUD). KDB, as outlined by Carrillo et al. (2014, p.347), a process of social learning that
develops a sustainable urban center through the use of knowledge capital.
Policies and Practices at National & Regional Level that support the Growth of Knowledge
Cities
The concept of KBUD is further characterized by Yigitcanlar (2014), as a framework of
collaborative development that offers guidelines to the public, academic, and private sectors in
developing future strategies capable of attracting and retaining talent in addition to establishing
knowledge intensive policies on urban and regional centers (Yigitcanlar 2016, p.203). According

Importance of KBD for Sustainable Success in a Digitized World 6
to the interpretation by Asongu, knowledge-based urban development takes into consideration
the knowledge and relevant territorial unit with a distinct weight (Asongu 2017, p.13). By
defining knowledge-based development as a process, we set the center knowledge and evaluate
changes resulting from outside influences. When the knowledge-based urban development is
product driven, our focus lies in the knowledge at the expense of territorial unit. This is what is
referred to as the peripheral factor (Yigitcanlar 2018, p.25). In another approach, it is referred to
as an acquisition guided one where knowledge is depicted as a mere factor in the process of
development which seems entrenched to the cultural, economic and social processes. When these
three are used in combination, what result is a result that is proper and satisfactory?
In countries that are still developing, urbanization has brought about immense changes in
the spatial distribution of people, resources together with land use and consumption (Page 2017,
p.27). Such a process has been linked to social and economic development through most
countries still lack the supporting framework and policies to leverage the process for improved
development gains and a guide to a sustainable pattern (Page 2017, p.27). Although urbanization
performs a vital function in the creation of wealth and opportunities as well as enable the good
use of assets and creation of new ones, many countries are yet to harness these aspects of
development (Hong et al. 2017, pg.59). Actually, these countries are yet to realize meaningful
development plans as urbanization challenges outstrip the gains of development. For
urbanization to be harnessed and its negative externalities mitigated, a coordinated approach and
clear policy directions are needed. Many countries are yet to realize this as a majority of
government departments are committed to dealing with various aspects of urban challenges.
Furthermore, the overall understanding of cities in national development has become limited as
urbanization has failed to feature as a national development opportunity. The key step to reassert

Importance of KBD for Sustainable Success in a Digitized World 7
urban space and territoriality lies in the development of a national urban policy (Hong et al.,
2017). It is also essential in providing the direction and course of action necessary to provision
urban development. The policy provides a framework through which pressing issues related to
development in urban centers can be dealt with (Hong et al., 2017).
Rapid progress in information and communication technology has significantly increased
the rate at which knowledge is created and disseminated especially with the decreased cost in
computing and electronic networks. With computer power and electronic network increasingly
becoming affordable, their efficiency has shot up with the quality and efficiency of knowledge
(Qiu and Wu 2017, p.241). The resulting progress has resulted in the form of a range of
innovations which has resulted in huge economic returns that have brought about the rise of
various economic forces that that has attempted to drive the economy towards its goals and
objectives alongside globalization (Yigitcanlar et al. 2017, p.2281). Knowledge is the
powerhouse of growth in economy and productivity (Kamuriwo et al. 2017, p.500). Besides
focusing on information and technology, knowledge helps in understanding economic
performance. With rapid and increased speed in knowledge dissemination, modern technology
has spread rapidly which has resulted into efficient production alongside increased probability of
leaps and competition at the global level.
Factors Likely to Encourage Sharing and Transfer of Knowledge
Among the elements involved in the successful transition to the knowledge economy
includes investment in education and knowledge, modernization of information and technology
infrastructure, development of the capacity of innovation and the establishment of a conducive
environment for market transactions. Long-term strategies are necessary to foster sift to a
knowledge-based economy (Tchamyou 2017, p.1200). These include knowledge of strengths and

Importance of KBD for Sustainable Success in a Digitized World 8
weaknesses as well as the combined effort of societal actors to come up with policies and
investments relevant to trends and objectives. The distinguishing factor in a knowledge-based
economy has been the rise of knowledge-based organizations occupying the knowledge markers.
There exists a number of aspects through which the knowledge-based economy can be viewed.
One aspect can be via the speed of development in technology more so those technologies that
generate the knowledge economy like ICT. Another aspect can be drawn from the economic side
where all areas in agriculture, industry, and administration have become knowledge intensive.
All development leads and social groups depend on access to knowledge via the provision of
continuing education for all (Oiu and Wu, 2017).
Greater efforts in the areas of education and training are essential in the knowledge
economy as the new kind in education and training are required for growth. With the steady
increase in the number of information workers, there comes a growing need for the formation of
scientists and works the field and that of IT. Literacy to information technology can hinder
progress (Ergazakis et al. 2006, p.80). Lifelong training alongside a higher level of scientific and
technological employment as well as the need to acquire a better education is therefore essential
to unlocking rapid knowledge development. Workers able to deal with encoded information and
technological knowledge are accorded higher wages compared to manual labor or physical
effort. Knowledge economy in summery has the following characteristics. Knowledge is the
main factor in production. The knowledge economy is networked through the evolution of new
communication methods (Ergazakis et al. 2006, p.81). It is digital which greatly impacts
information volume, storage, and processing. Finally, it is a virtual reality where visualization
becomes a reality with digitization and networks.

Importance of KBD for Sustainable Success in a Digitized World 9
Conclusion
In conclusion, knowledge-based development has become vital to sustainable success in
this digitized world where growth and productivity have come to be dependent on knowledge.
For business sustainability in urban centers, three pillars of corporate sustainability are essential.
These are the environmental pillar, the social pillar, and the economic pillar. Knowledge-based
development has been evident in the day to day growth at urban, regional, national, and
supranational levels. In the modern media, the concepts of knowledge city convey a collection of
cultural, technological, scientific, and academic and innovation potentials in cities and regions
that foster economic growth. Rapid progress in information and communication technology has
significantly increased the rate at which knowledge is created and disseminated especially with
the decreased cost in computing and electronic networks. Among the elements involved in the
successful transition to the knowledge economy includes investment in education and
knowledge, modernization of information and technology infrastructure, development of the
capacity of innovation and the establishment of a conducive environment for market
transactions.

Importance of KBD for Sustainable Success in a Digitized World 10
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