1. Tony Weir Australian Bureau of Statistics Measuring a Knowledge Based Economy and Society (email: tony.weir@abs.gov.au)

2. A knowledge-based economy is an economy in which the production, distribution and use of knowledge is the main driver of growth, wealth creation and employment across all industries. (OECD 1996, APEC 2000) Definition

3. “The ability to create, distribute and exploit knowledge is increasingly central to competitive advantage, wealth creation and better standards of living…While the overall trends are clear, large differences remain within the OECD area.” (OECD (2001) Motivation

4. Approaches to KBE/S measurement Statistical indicators within the context of a descriptive framework A KBE/S index Direct measurement of knowledge

5. Why create a KBE/S framework? ABS thought it important to present measures of the knowledge based economy and society. A framework provides a structure and logic for statistical content. We call our framework a “descriptive framework”.

6. Basis of the KBE/S framework OECD New economy: beyond the hype (2001) Asia-Pacific Economic Co-operation (APEC) Towards KBEs in APEC (2000) ABS work on social capital etc.

7. Structure of the KBE/S framework Three core dimensions –Innovation and entrepreneurship –Human capital –Information and communications technology. Two supporting dimensions –Context –Economic and social impacts.

8. Simplified framework structure

9. Structure of the framework (ctd) Each dimension is described in terms of: –characteristics –indicators (quantitative measures of characteristics)

10. Example Dimension: –Human capital One characteristic from the dimension: –Stock of skilled people One indicator of this characteristic: –Highest completed level of educational attainment of the population, by age and sex.

11. Indicators of the framework Ideally an indicator should be: –relevant to the characteristic it is measuring –supported by relevant and timely data –sensitive to what it is measuring –intelligible –available for several periods, including recent ones –available for other countries.

12. Status of the ABS framework Publication of a Discussion Paper in August 2002 Parallel release of HTML version –with hot links to data sources for statistical indicators Much data already published elsewhere.

15. Proportion of skilled occupations, 1989-2001

17. “Workers will require the ability to create, analyse and transform information and to interact effectively with others…. Learning will increasingly be a lifelong activity.” -Alan Greenspan (July 2000)

18. Percentage who have NOT completed school 1999

23. Korea Australia Canada S’pore Bus Env ICT Innov Sys HRD

24. “If governments and their citizens are not to be swept away in the ‘gales of creative destruction’ marking the evolution of the knowledge economy, they will need to fill the vacuum in understanding which currently exists.” - A. Burton-Jones, Knowledge Capitalism (1999)

25. Comments are sought on all aspects of the framework theoretical and empirical basis structure and choice of dimensions & characteristics range of indicators proposed including priorities dissemination possibilities –comprehensive compendia –thematic publications –frequent summary releases in paper or via Web.