Post-industrial Society - Valuation of Knowledge

Valuation of Knowledge

Paul Romer, a professor of economics at Stanford, revolutionized the appreciation of knowledge as a valuable asset. As he says it is not just the "ingredients" (supply) that makes good food, it is the "recipe" (knowledge) that counts too. Better recipe, better food means better knowledge, more economic growth.

More recently, economists at Berkeley studied the value of knowledge as a form of capital, adding value to material capital, such as factory or a truck. Speaking along the same lines of their argument, the addition or 'production' of knowledge, could become the basis of what would undoubtably be considered 'post-industrial' policies meant to deliver economic growth.