2.1.6 The Twenty-First Century Knowledge Economy and its Social and Economic Impacts Flashcards
What is the quaternary economy?
- Forms the major activity of the 5th Kondratiev wave
- Characterised by the rise of communication and computer/information technologies
- Clustering occurs and it is happening in cities
- Lots of intra-industry spill overs
What is the knowledge economy?
Innovation
What are Knowledge Intensive Business Services (KIBS)?
- Highly localised despite ICT systems
- In city centres
- 50% of KIBS jobs are taken by graduates
What is the digital economy?
Includes ICT (software development, broadband networks, hardware, software, sales, marketing) and digital content (digital media, publishing, design, music, advertising)
What are the creative industries?
Includes product design, software development, broadcasting, advertising, libraries, museums
What is biotechnology?
Includes medical research, legal, accountancy and management consultancy
What are unicorns?
Companies that have recently started but are now worth over $1 billion
What is a patent?
The legal right to an invention
Where is Silicon Valley?
- Between San Francisco and San Jose
- Extends the length of the Santa Clara Valley in Northern California
How have triggers given rise to the growth of the knowledge economy in the valley?
- Pre 1940s, radio enthusiasts were attracted to the area due to the Mediterranean climate and cheap property prices
- Hewlett Packard located in Paulo Alto where they developed oscillators
- This triggered people to follow
How have universities given rise to the growth of the knowledge economy in the valley?
- Stanford, Berkley, Caltech
- Research professors and students are a constant source of inspiration and have spawned many companies
How have inspirational individuals given rise to the growth of the knowledge economy in the valley?
- Terman (dean of engineering at Stanford) set up Stanford Industrial Park where 150 firms are
- Socklet set up a laboratory and associates made semi-conductors/silicon chips (which late become Intel) when they broke away
- Brin and Page (former Stanford students) set up Yahoo and Google in 1998
How has the family tree of companies given rise to the growth of the knowledge economy in the valley?
- A company called Fair child was a parent company of Apple, Cisco etc.
- Google, Yahoo, eBay and Netscape piggybacked on growing power of hardware from these companies
- Software developed at the same rate
- Agglomeration
How have military needs given rise to the growth of the knowledge economy in the valley?
- World War 2 Ames Research Centre is at Moffett
- Among the first computers developed in the world
- Same site evolved into an air force and NASA base
- Google and government share the site
How have young entrepreneurs given rise to the growth of the knowledge economy in the valley?
- Highly skilled graduates refuse to leave the area
- Many have set up their own companies
How has the inertia of young talent given rise to the growth of the knowledge economy in the valley?
- Highly skilled, talented, young graduates refuse to leave the area
- Companies have to locate there then to attract them
How has the transport provision given rise to the growth of the knowledge economy in the valley?
- Regionally and internationally interconnected
- Freeway 101, Caltrain and 3 airports (San Francisco International Airport, Oakland International and Mineta San Jose)
- San Carlos is a small airport for wealthy entrepreneurs
How has the ability of firms to recruit talent from around the world given rise to the growth of the knowledge economy in the valley?
- Talent is attracted to area by increasingly diverse amenities, restaurants and social provision available
- Not only employment