Creating An Economic System That Works For All

There is a fundamental paradox in the determination of demand for information; its value for the purchaser is not known until he has the information, but then he has in effect acquired it without cost which arises only in the context of uncertainty. On the one hand, the purchaser is not certain of paying the price not until he knows about the information, and on the other hand, the owner is afraid of being cheated as soon as he reveals the information (Arrow 1959, pp. 9–10). Therefore , the importance of an effective intellectual property rights, as a requirement for continuity of the production process, especially knowledge-based production, seems to be more than any time before. Kamil Idris, stated in his book, which is published by World Intellectual Property Organization, that “intellectual property could be called the Cinderella of the new economy.

Economic System

In other words, it enables the possibility of estimating the implications of developments in the knowledge-based society as well as the extent of their influence in order to achieve community development. No scientific model is able to understand and measure the knowledge-based economy unless it includes basic components of a knowledge-based institutional and organizational framework in its analysis, to make the bases of the model design.

In case of establishing a knowledge-based economy, institutional framework and knowledge-based innovation will continually reinforce each other. Undoubtedly, the first step to establish a knowledge-based system is to form an institutional framework that supports productive activities.

Perhaps nowhere better illustrates capitalism’s success in post-Iron Curtain Europe than in the country of Estonia. The Triple Helix model is known as one of the most successful models of determining and understanding the underlying relations of the knowledge-based economy. Understanding this model can provide us with deep and strategic understanding of the structure of the knowledge-based economy, but there are still shortcomings and weaknesses in the model. They appear especially when the model is applied for analyzing different economic contexts. In this regard, one of the less considered points is the reward system of economy, without which the model efficiency in underdeveloped countries will be significantly reduced. It is a vital issue that the institutional framework of a country rewards which activities. The knowledge-based economy constantly changes with knowledge-based innovations the main point is to give priority to reformation of the institutional framework so as to provide the conditions for formation of productive innovations.

While presenting an overview of the Triple Helix model, the researchers in this study attempted to show the significance of reward system reformation as an essential component of production-oriented institutional framework. The Triple Helix model is an analytical model for explaining knowledge-based socioeconomic changes. Leydessdorff and Etzkowitz proposed the Triple Helix model of relations between and among university, industry, and government to explain the structure of development in a knowledge-based economy. In a knowledge-based economy, the community structure constantly changes by developments emanating from the science and technology. Accordingly, it is expected to change the community structure as well (Leydesdorff 2012, p. 2).

The Triple Helix model is also shaped on this basis by taking the characteristics of the knowledge-based economy as well as the importance of intellectual property rights of organizations into account. Knowledge-based nature of innovations has made the issue of intellectual property rights the guarantee for the achievement of this type of innovation, and the crucial key element of the knowledge-based economy. In the meantime, considering the concept of intellectual property as a critical issue is necessary for continuity and generation of the knowledge-based production system. Because, in the absence of reliable property rights system, suppliers of new ideas would not be able to sell their information to the market since the chance of reproducing and distributing such ideas has been made possible with little or no cost. But, only in return for obtaining monopoly, the owners of new ideas would reveal their thoughts.

People have an age-old tendency to compare themselves to their neighbors, especially when it comes to wealth. We are less concerned about our absolute level of wealth, but look more at what we have and own in relative terms to the people around us. Global private wealth reached a record $166. 5 trillion in 2016, an increase of 5. 3% over the previous year, according to a report by the Boston Consulting Group. 1 In 2015, the increase was 4. 4%. Faster economic growth and stock price performance mainly drove the rapid increase. Since the fall of the Soviet Union, free market systems have been implemented in numerous former Soviet States.

A drab but useful servant, consigned to the dusty and uneventful offices of corporate legal departments until the princes of globalization and technological innovation revealed her true” (Kamil Idris 2003, p. 24). In this regard, guarantee of property rights will undoubtedly play a key role in realization of a knowledge-based economy. Knowledge production and innovation in the context of the knowledge economy, knowledge society, and the natural enviroments od society. Modified frome carayannis and Campbell (2012, p. 18), Etzkowitz and Leydesdorff (2000, p. 112) and Danilda et al. Directions of other changes of the model may be assessed by determining the type and number of the most influential and dynamic sub-dynamics of the society. “The Triple Helix encouraged researchers to reflect more compared to two dynamic factors ” (Leydesdorff 2012, p. 17). Extending this model has been not limited to simply three dynamic factors.

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