The Information and Communication Technology Revolution: International Experiences in the Knowledge Economy

The revolution in information and communication exchange is one of the most dangerous scientific and technological revolutions. Every corner of the world and every individual in it has become capable of overcoming all physical and political barriers between countries. (Toffler) confirmed the end of the industrial civilization and the beginning of the third wave of human civilization, through the rapid expansion in the production and use of “microprocessors,” biotechnology, and the overlap of information in transportation. All of this led to the creation of new materials with amazing characteristics, accompanied by social, human, demographic, and political changes, and a direct link was established between science, technology, and society.

International Experiences in Transitioning to the Knowledge Economy

There are many countries that have decided to keep pace with the rapid development in the field of the economy and to keep pace with the information and communication revolution, so their economies have transformed into the knowledge economy. The United Nations program indicates that the discovery of gold mines and the control of industrial mechanisms no longer lead to economic greatness. The new ways are the ability to produce information programs and the possibility of deciphering genetic codes. Among the most prominent applications of the transition to the knowledge economy are:

1. Scandinavian Countries: (Sweden) Sweden has a population of about 9 million, distributed over 450,000 km2, and Sweden is a very advanced country in the field of the knowledge economy, as the information technology sector is witnessing tremendous growth. Sweden invests in information and communication technology as a percentage of the gross national product more than any other country, and the investment rate reaches about 7.72%, which is higher than the rate in the United States (7.29%), according to the European Information Technology Observatory (EITO). Sweden also comes first in knowledge investment, culture, training, research and development, and accordingly, Sweden has become one of the most technologically advanced countries. In 1998, the software sector witnessed a growth of 40% due to the increasing sales of Swedish companies in the world, knowing that there are 600 Swedish software companies in Sweden, in addition to the presence of a number of multinational companies in the field of communications. Scandinavia is the most developed region in the field of e-commerce, where Sweden also occupies an important center.
2. India India is characterized by the growth of added value in the field of exporting technology and services. India also creates many manufacturing jobs, although this sector is still less effective and less widespread than its counterpart in China. Studies indicate that engineers in India are more training-efficient than their counterparts in China, and that India’s inexhaustible pool of qualified graduates is approximately twice the Chinese capabilities in this field. India is currently a candidate to be an advanced base in the field of the knowledge economy. It has made great strides in the transition from an economy with agricultural activities, traditional industries, and simple services to a developed economy, especially with the presence of effective economic reform programs. Among the most important factors for India’s success in the transition to the knowledge economy are the following:
   1. Geographical Location Advantage: India has been able to benefit from its geographical location, as the Indian time differs from the US time by (12) hours. It is known that the United States of America is the largest global market for software, and this feature has allowed American companies to establish branches in India or to conclude contracts with Indian companies, which contributed to making their software projects work around the clock. The (12) hour difference in time is a great advantage that has allowed continuous work in software projects.
   2. Human Resources: India has the second largest group in the world of technically specialized manpower who are fluent in the English language, and only the United States of America precedes India in this field, and India has an advantage over it, due to the low cost. The software industry in India started in 1985 and had (6800) software specialists, and within (12) years, India was able to achieve a leap in the number of programmers to reach (340) thousand programmers in 2000. The global demand for programmers reaches two million programmers in Japan, the United States, France, Germany and the United Kingdom, and India can provide (60) thousand programmers every year, and thus India can respond to global demand.
   3. Low Cost: The strong Indian growth in the software industry is attributed to the low cost of Indian programmers, as they were receiving the equivalent of (15-20%) of what their counterparts in the developed countries were receiving, which prompted Indian companies to set a low level for pricing software projects, and the advantage of low cost was exposed to fading during the period from (1990 – 2000), and an increasing number of Indian programmers have been receiving high wages that match global standards. Despite this, India still provides a good opportunity and a real value important for the money invested in the field of software.
   4. A Wide Range of Services: India can offer a wide range of software services, starting from technical support and data processing to the most advanced and complex software systems. Due to the low cost of software companies’ operations and the availability of an experienced workforce on all levels, Indian companies can offer intensive work services to implement large software projects, and to offer quality solutions that include advanced software systems.
   5. Not Abandoning Old Technology: India was fortunate to enter the world of the software industry relatively late (mid-eighties). Unlike European countries and Japan, which were forced to comprehensively renew their equipment and software, India did not bear the cost of such renewal, and very few Indian companies had to invest in a second generation of equipment, because it started investing seriously in the mid-eighties.
3. Malaysia Malaysia developed its strategy in 1986 to transform its industry from relying on assembly only to implementing all operations in the industrial value chain, and from operating industrial projects in a relatively isolated manner to operating them within cluster industrial complexes that benefit from each other. To this end, the Malaysian state launched two major programs to achieve these goals: the project development program and the industrial complex building program, which adds value to Malaysian products. Malaysia put its first political plan for science and technology in 1986, as mentioned above, followed by drawing a plan for industrial development in 1990, and during more than two decades, it succeeded in developing and strengthening infrastructure and building human capacities in the field of science and technology. It adopted a policy of seven axes or keys to transform its economy into a developed knowledge economy, which are as follows:
   1. Enhancing national capabilities in research and technology by opening scientific research centers.
   2. Encouraging the marketing of research results by establishing contemporary electronic and non-electronic scientific research journals.
   3. Developing human capabilities through continuous and contemporary workshops and encouraging joining them.
   4. Promoting the culture of science, innovation, and entrepreneurship, and establishing scientific and research forums such as conferences, seminars and workshops.
   5. Disseminating and applying technology on a large scale, which leads to strengthening the market and research and development to adapt and improve technology.