The Role of Knowledge-Based Economics in Improving Competitive Advantage with an Entrepreneurial Approach

Abstract

In today’s world, knowledge-based economics has changed all the fields of commerce, economic structure, productivity, management methods and so on and possesses characteristics including trade liberation and commerce globalization, information and communication technologies, knowledge management, infrastructural alterations of economy, location and workforce changes, increasing the choosing rights of the customers, shrinking the government and electronic commerce. In order to implement knowledge in economy, entrepreneurship and creativity play a significant role in preparing the basis for change, revolution and transformation and in the arena of international competition, entrepreneurial companies have directed their cutting edge competitiveness towards organizational flexibility and continuous transformation of working processes, products and designs. Accordingly, the current paper tries to answer an important question concerning the position of knowledgebased economy in improving competitive advantage through instating it in entrepreneurial culture. In order to answer this question, knowledge-based economic measures proposed by the World Bank and ARDL econometric method are used. The results show that in industrial and service sectors, there is no stable competitive advantage which can be an indication of a weakness in implementing the trainings presented to entrepreneurs. Moreover, the results indicate the improvement in relative competitive advantage for the agricultural sector and the reliance of Iranian economy on the traditional portion of economy.