Moving towards the knowledge-based economy: A comparative study between Malaysia and South Korea

Abstract

This paper attempts to draw an attention on knowledge-based economy as it is the main part of economic and social development process of any country. Developing countries are way forwarding towards the new economic models of development by tremendous use of information and knowledge asset. In this advancement process Malaysia and South Korea are incorporating knowledge based economic model in order to create unique opportunities of business and gaining competitive advantages in the world market. ICT development, Innovation, Economic Incentive, Information Structure, as well as enhancement of Human Capital are the main pillars to regulate Malaysia and South Korea following a new model of development called knowledge-based economy. ICT competition appears enormously in the global market and countries are shifting from old paradigm to new information of knowledge. Thus knowledge-based economy opens a new horizon of opportunities and mediates an economic imbalance among countries. Based on this understanding and recent outrage practice of this theory helps this paper to illustrate the consecutive factors of knowledge economy and exemplifies the ways of economic and social development process implemented in Malaysia and South Korea for last decade.