Building a knowledge economy in South Africa

Abstract

Over the past two decades the economies of leading countries have increasingly evolved into knowledge-based economies, relying less on traditional resources such as capital and labour for wealth creation and growth. It is generally accepted that the creation of new knowledge, innovation and technological change drive progress in such countries. Economic activities based on new knowledge stimulate economic growth, provide higher wages and greater employment opportunities, as well as enhance a country's competitiveness within the global environment. These positive economic trends, prevalent in many developed countries, strongly depend on new technology investments, high-technology industries and highly skilled labour. These are essential ingredients in the making of a knowledge-based economy.