Globalization: Knowledge-based economy in Europe

It is a fact that today’s European economy is strongly impacted by globalization. European firms have the opportunity to go to the global market. In order to be successful and to achieve a local and international development, those companies have to adapt and to reinvent their strategies. The challenge today is not anymore to have the largest plants, the higher number of employees, or the biggest cash flow. The global aim is to get the knowledge in order to optimize all those factors. By controlling the knowledge, firms are able to reduce their costs and to become more efficient and powerful. European authorities are aware of the importance of knowledge to achieve a global goal of growth and prosperity for all European stake holders. That’s why the Lisbon Strategy has been decided in 2000. Its aim was to make the Europe the number one knowledge-based economy of the world by 2010. “Be Competitive through innovation” this is what Europe wants; its firms have to do that to compete in the global world. As it’s possible to see in that investigation, knowledge is the key for European firms to keep a real competitive advantage in term of innovation. This is true especially because today Europe is under a pressure that comes from emerging countries. In that research paper we develop the idea that, the way that emerging countries can innovate by improving their knowledge performance, is a real threat for European leadership. Compare to the USA, Europe is considered to have a quite different way to deal with globalization and Knowledge management. US individualistic culture leads them to a negative competitive approach of knowledge. In Europe, firms have a better approach of Knowledge management; more consensual. European companies have the ability to share innovation project, even if they are competitors. There is a long way for Europe to become the global Knowledge leader. If European authorities really want to help their firms, they need to stimulate education, research and innovation. Continue to empower European’s human capital is a crucial aspect to succeed.

Keywords: Globalization, Knowledge based-economy, Innovation, Lisbon Strategy.

[...] Origin of the Knowledge-Based Economy Codification Learning Networks Employment Government policies Knowledge Based Economy: research, innovation and creation Knowledge production Knowledge transmission Knowledge transfer Government policies Knowledge management in Europe How European firms create Knowledge II) European Firms pragmatic strategic and operational approach When’s regional firms go global Other strategic options Anticipation and identification of possibilities Managerial implications Multinational Firm’s approach Importance of domestic market Classification multinational firms A new business relation between partners Key of success to deal with Asian business partners How it used to work in China Chinese domestic market opportunities The necessity to trust Chinese regular partners European way to outsource III) Knowledge-Based Economy: US vs. [...]

[...] In 2000 the recognized goal of the European Council is become the most competitive and dynamic knowledge-based economy in the world by 2010, capable of sustainable economic growth with more and better jobs and greater social cohesion[10]”. The EU has since initiated a lot of programs in order to encourage innovation. That specific development plan for EU is call the “Lisbon Strategy”[11]. These projects demonstrate the changes that are taking place in the nature of the economy and identify the main causes in value creation. [...]

[...] [9]According the OECD : Scoreboard 2001 Towards a Knowledge-Based Economy [10]Presidency Conclusions on the Lisbon Strategy 2000-2003 by Theme (European Council, 2003) [11]It was imagined and support by the European Council that was in the Portuguese capital during that period. The 2003 European intangibles summit’ (Prism, 2003) part based on an Interview of Leif Edvinsson , Intellectual Capital Expert and world's first Corporate Director of Intellectual Capital at Skandia of Stockholm [14]Interview of Leif Edvinsson Feiwel, G., R., The Intellectual Capital of Michal Kalecki: A Study in Economic Theory and Policy (University of Tennessee Press, 1975) [16]foundations for a sustainable knowledge economy [17]How do clusters create knowledge? [...]