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Abstract

The global economy has undeniably undergone profound transformations since the 1990s, though the nature, trajectory, and implications of these changes remain subjects of intense academic debate. Currently, the rapid pace of technological advancement has accelerated significantly, elevating the strategic importance of research and development (R&D) and knowledge-based smart industries in maintaining competitiveness within global markets. Information and Communication Technology (ICT) is fundamentally reshaping the essence, pace, and geography of economic activity by creating novel products, markets, and institutional values—technologies that have become widely accessible and relatively cost-effective despite their rapid evolution. In modern production processes, software has superseded hardware as the primary driver of enhanced efficiency and competitive advantage, while advanced industrial materials have largely replaced natural resources, leading to a marked reduction in the resource intensity of industrial products. Furthermore, when integrated with human intelligence, information technology has displaced physical capital as a core factor of production. In this era of brainpower-based industries, the traditional distinction between labor and capital has blurred, as knowledge and skills—often termed human capital—can be cultivated using the same investment frameworks that generate physical assets. While primary labor persists, its strategic significance has diminished as it becomes easily sourced from global labor surpluses. Consequently, knowledge has emerged as the definitive source of competitive advantage, where national success or failure is dictated by the ability to transition effectively toward the industries of the future, as the competitive equation is now defined by the mastery of human capital and technology.

DOI

10.33095/xnhf2m70

Subject Area

Economics

First Page

139

Last Page

158

Rights

https://creativecommons.org/licenses/by-nc/4.0

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