Using Knowledge For Public Good

Traditionally, economics has been dealing with only two factors of production: labor and capital. This is now changing. Information and knowledge are replacing capital and energy as the primary wealth-creating assets, just as the latter two replaced land and labor 200 years ago. In addition, technological developments in the 20th century have transformed the majority of wealth-creating work from physically-based to "knowledge-based.". Technology and knowledge are now the key factors of production.

Knowledge is a product which is difficult to price on a regular market. Knowledge is usually found in the form of an intermediate good, rather than the final good. It is essential in the development, production, distribution, and sales of products.

A public good is when consumption of it by one party does not prevent consumption of it by other parties. Some examples of public good are public parks, roads, and bridges. Yet these can become private good if a person or group of persons makes excessive use of it and deprive other people the benefits of using such facilities.

The third wave of human socio-economic development is described by Charles Savage in "Fifth Generation Management". The first wave was the Agricultural Age with wealth defined as ownership of land. In the second wave, the Industrial Age, wealth was based on ownership of Capital, i.e. factories. In the Knowledge Age, wealth is based upon the ownership of knowledge and the ability to use that knowledge to create or improve goods and services. Product improvements include cost, durability, suitability, timeliness of delivery, and security.
In the Knowledge Age, 2% of the working population will work on the land, 10% will work in Industry and the rest will be Knowledge Workers (Ann Andrews).

Given the scope and reach of knowledge work, there is enormous potential for using knowledge for public good.