Education, Globalisation and the Future of the Knowledge Economy

Abstract

The dominant view today is of a global knowledge-based economy, driven by application of new technologies, accelerating shift to high-skilled, high-waged European economies. This view is reflected in expansion of higher education and key role of higher education in national and European economic policy. The Lisbon agenda seeks to make European Union the most competitive and dynamic knowledge-based economy in world, capable of sustainable economic growth with more and better jobs and greater social Not only is education believed to hold key to international competitiveness but to foundations of social justice and social cohesion. This article outlines underlying assumptions of this mantra, which in many respects has changed little since 1960s when human capital theory gained increasing prominence in education and economic policy (Halsey, 1961). It examines prospects for creation of high-skills economies throughout Europe in light of new realities of global economy. This analysis is based on interviews with senior managers and executives in leading transnational companies and government policy makers in seven countries including China and India. In conclusion, authors outline a series of issues as a contribution toward a new agenda for education and knowledge economy within European Research Area. Following this essay are two responses: (1) Expanding Higher Education System and Building World-Class Universities: China's Response to Globalization and Knowledge Economy. (Wang Yingje); and (2) Education, Globalisation and Future of Knowledge Economy: Three Comments (Stephan Vincent-Lancrin). (Contains 1 figure, 1 table, and 25 notes.)