In the developed nations of the world, there has been a gradual shift away from certain types of low wage, low skill labour towards occupations that run on knowledge. The increasing popularity of ITIL training and certification is just one example of this transition.
The knowledge economy offers prospective workers new opportunities in a range of industries.
This development has been driven by the innovation in the field of digital technology. Specifically, experts have used the term knowledge economy to define and categorise the new processes that have developed. One example could be the rise of IT service providers that connect companies with customers in new ways. A 2012 Gartner report found that IT outsourcing is a $246.6 billion industry.
In Australia's economic landscape, the term has become a familiar buzzword. However, its acceptance has led policymakers and business leaders to implement strategies to harness its potential for greater economic activity and thus increased employment. For instance, the New South Wales government has been implementing a strategy that aims to develop an education system orientated towards knowledge-based roles.
Back in 2002, the New South Wales government released its Technology Education Action Plan (2002-2006) aimed at inculcating in young people the capabilities they will need to fulfil these new knowledge-based occupations.
The report emphasised that "innovation, along with the knowledge development and management, are the building blocks of an information society and a knowledge economy".
What does the knowledge-based economy mean for employment?
According to a 2004 annual review by researchers from Stanford University and the Santa Fe Institute, the knowledge economy relies on intellectual pursuits rather than manual labour or natural resources.
"We define the knowledge economy as production and services based on knowledge-intensive activities that contribute to an accelerated pace of technological and scientific advance as well as equally rapid obsolescence," said the authors.
The main transition point for advanced industrial economies has been the reduction of jobs that rely on manual labour and physical characteristics and an upsurge in opportunities that emphasise intellectual capabilities. Further, educational programs in traditional industries such as construction have become less attractive than other courses, such as those related to IT security training.
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The article uses the example of an automobile to emphasise this point.
A new vehicle today is a smart machine, whereby the majority of parts utilise computer technology – rather than solely metal, plastic and rubber. Aspects such as safety and performance are no longer the sole responsibility of the metal encasing, instead, technology plays an important part in the form of components such as anti-lock braking systems.
Further, there has been a general shift in the production of tangible goods to the development of digital products.
PRINCE2 and job opportunities in the new economy
One of the most important aspects is the types of jobs available to workers.
This is especially relevant to the current state of Australia's economy. With the flattening off of the mining boom, technological and knowledge-based companies are rebalancing the economy.
One of the most popular ways to access this new mode of economic activity is through project management and more specifically PRINCE2 training.
According to the Knowledge Train, from 2005 to 2012 there has been a 249 per cent increase in PRINCE2 examinations in the Australasian region.
PRINCE2 is a sophisticated management framework that allows users to properly govern large projects, such as the construction of a new building or the implementation of a new data analytics system.
It was initially developed by the UK government and saw extensive use in the public sector, however since its inception, the best practice framework has been utilised by private industry in a range of fields.
If you would like to find out how PRINCE2 training can help you expand your potential, talk to ALC training today and get your future started,