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The Knowledge Economy: A New Development Paradigm for Latin America and the Caribbean (LAC)
Abstract
The escalating competitiveness in the international global economy has created a growing demand for the creation and diffusion of knowledge. A Knowledge Economy (KE) is one that by creating and taking advantage of new knowledge can dramatically increase the wealth of a nation. Many countries have grown to become successful knowledge economies including Finland, the United States and most recently Korea, China and India. Latin American and Caribbean countries are faced with the predicament of being left behind because of their low quality of education, their weak macroeconomic base and their poor infrastructure on information and communication technologies (ICT). There are several indicators that need to be improved to establish a base for knowledge economy such as laws, improvement and creation of research and development institutions, education infrastructure, comprehensive intellectual property rights, ICT networks, and knowledge transfers between research institutions and local enterprises. This chapter brings in the concept of the KE as a new development paradigm for Latin America and the Caribbean region.
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