Industrialization, innovation and development: what does knowledge management change?

This paper reviews the relationship between knowledge management and development. First it highlights the ways knowledge has become a major issue and why it matters, arguing the danger of oversimplifying its application as the new panacea for development. The paper then emphasizes the need to understand better institutional and industrial change processes through detailed investigation of production transformations 'on the ground'. The paper suggest that knowledge-based industrialization demands a change in the ways we think about development and in policies to promote industrialization, focusing on issues of knowledge transfer, local knowledge and institutions, and knowledge management. Copyright © 2000 John Wiley & Sons, Ltd.

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