Contents -- Foreword -- Acknowledgments -- Introduction: Knowledge-The Heart and Mind of Economic Development -- 1. Toward Knowledge Economies: Global Trends and Issues -- A Brief Historical Retrospective -- Knowledge as the Foundation of Development -- How Knowledge Reshapes Economies -- Challenges and Opportunities -- 2. The Knowledge Economy: Analytical Framework and Benchmarking Elements -- A Four-Pillar Framework -- Measuring and Benchmarking Knowledge-Based Economies -- The Knowledge Economy and Economic Performance -- Annex 1 The Knowledge Assessment Methodology -- Annex 2 The Knowledge Economy and Economic Growth: Econometric Calculations -- 3. The Process of Building a Knowledge Economy -- Drawing on the Lessons of Success -- Adopting Conducive Attitudes -- Adapting Policy Actions to Development Levels -- Managing Reform Processes -- Exploiting Entry Points: Driving Sectors and Cities -- Dealing with a Country's Context -- 4. Improving the Economic and Institutional Regime -- General Considerations of Governance and Business Climate -- Obstacles to Business Development -- Regulation -- Finance -- Trade -- Clusters and Related Measures -- Local Reforms -- 5. Fostering Innovation -- General Considerations -- The Institutions and Instruments of Innovation Policy -- Stimulating and Supporting Innovators -- Research and Technology Infrastructure -- Programs for the Diffusion of Basic Technology -- Export Sector Policies -- Intellectual Property Rights -- 6. Strengthening Information and Communication Infrastructure -- A Holistic Approach -- Key ICT Dimensions -- An Enabling Environment -- Access -- Usage -- Developing ICT Skills -- Evolving Agendas -- 7. Upgrading Education -- Basic Education -- Tertiary Education -- Lifelong Learning -- Governance of Education Systems -- International Mobility of Human Resources.

8. Strategic Directions for Selected Countries and Country Groups -- China and India: The Emerging Giants -- Active Reformers -- Economies with Untapped Potential -- Low-Income Beginners -- Conclusion: Moving Ahead to a Knowledge Economy -- Putting KE at the Heart of Development Strategies -- Adapting KE Policies to Country Specificities -- Acting Ambitiously on the Four KE Pillars -- Making the State and Institutions Responsive to KE Needs and Opportunities -- Epilogue: Better Knowledge and Understanding of Society for Promoting Knowledge Economies -- Appendix: World Bank Publications on the Knowledge Economy -- Bibliography -- Boxes -- 1.1 Theories of Growth: Integrating Knowledge in Economic Models -- 1.2 Why Growth Performances Differ: Total Factor Productivity -- 1.3 The Green Revolution in India -- 2.1 Knowledge and Growth-Empirical Evidence -- 2.2 Other Benchmarking Methodologies: WEF and UNIDO -- 3.1 Vietnam's Development and KE Elements -- 3.2 Botswana: Investments Supporting KE Development -- 3.3 Chile: Exemplary KE Efforts, but a New Push Needed -- 3.4 Key Bodies for KE Reforms in Finland -- 3.5 Korea's KE Transition: Bottom-Up Initiatives and Government Action -- 3.6 Dubai's Transition to a Knowledge Economy -- 3.7 Differences between Eastern and Western Cognitive Processes -- 4.1 Improving Governance in Low-Income Countries -- 4.2 Success in Achieving Significant Economic and Institutional Reforms: The Case of Botswana -- 4.3 Obstacles to Firm Growth in Developing Countries: What Are the Binding Constraints? -- 4.4 Successful Deregulation in Mexico -- 4.5 Creating a Venture Capital Industry: The Network of Overseas Chinese -- 4.6 What the 1990s Revealed about Trade Reforms -- 4.7 Public Policies That Encourage Cluster Development -- 4.8 China's Special Economic Zones -- 5.1 Pride of Place: Innovating Successfully in Rural Areas.

5.2 Ireland's National Linkage Program, 1987-92 -- 5.3 The Institutional Features of Finland's Innovation Policy -- 5.4 Innovation Policy Schemes in OECD Countries -- 5.5 India's Council of Scientific Industrial Research: From Self-Sufficient Technological Development to Competitive Market-Driven R&D -- 5.6 The Malaria Research and Training Center of Bamako University in Mali -- 5.7 Basic Technology and Capacity-Building in Rwanda -- 5.8 The Fundación Chile Model for Promoting Innovation -- 5.9 Open Source Software: An IPR Regime Friendly to Developing Economies -- 6.1 "e-Sri Lanka" and a Holistic Approach to ICT -- 6.2 Using "Older" ICT in Three Countries -- 6.3 Rwanda: ICT Vision and Leadership -- 6.4 Overcoming Capacity Constraints for Telecommunications Reform in Mauritania -- 6.5 The Impact of Effective Regulation in Morocco -- 6.6 The Chilean Telecommunications Development Fund -- 6.7 Using ICT to Improve the Delivery of Services to Rural Populations in India: Three Examples -- 6.8 Brazil and the Internet -- 6.9 Estonia: Applying the "e" to All Aspects of Life and Work -- 6.10 Developing the IT Skills of Poor Women in Kerala -- 7.1 The Education for All-Fast Track Initiative -- 7.2 Higher Enrollment and Better Learning Outcomes in Ghana -- 7.3 Multilingual Education in Africa -- 7.4 Colombia's Telesecundaria: Reaching the Rural Poor -- 7.5 The Jordan Education Initiative: New Methods for Improved Teaching -- 7.6 Vocational Education and Training in the Informal Sector -- 7.7 Mozambique's Tertiary Education Reforms -- 7.8 Millennium University of the Monterrey Institute of Technology in Mexico -- 7.9 Use of Educational Television in India, Brazil, and Mexico -- 7.10 School Management and Student Performance: Results from PISA -- 7.11 Initiatives to Encourage Highly Skilled Migrants to Return Home -- 7.12 The Global Scot Network.

8.1 Lifelong Learning in China: The Need for a Broad Action Plan -- 8.2 Bangalore's Innovation System -- 8.3 Malaysia's Multimedia Super Corridor and Expansion Project -- 8.4 Tunisia: Developing Technopoles -- 8.5 Mexico's Monterrey Urban Cluster -- 8.6 Mendoza's "New Industrial Policy"-Public-Private Institutions Providing Public Goods and Services -- 8.7 Bangladesh: Reforms and Industrial Development -- 8.8 Research and Innovation in Francophone Africa-Some Examples -- Figures -- 1.1 Time, Substance, Life, and Energy: An Evolution Through Time -- 1.2 World Growth in Key Information and Communication Technologies, 1991-2004 -- 1.3 GDP Growth in Republic of Korea and Ghana over 50 years -- 1.4 Growth in World Trade in Manufactures, by Level of Technology of Traded Goods, 1994-2003 -- 1.5 The Growing Contribution of Services to GDP -- 1.6 The Rise of Human Capital -- 1.7 Changes in Job Tasks and Skill Demands in the United States, 1960-98 -- 1.8 Investment in Knowledge as a Share of GDP, 2002 -- 1.9 Contribution of Intellectual Assets to U.S. Market Value, 1982-2002 -- 1.10 The New Competitive Arena -- 1.11 Uneven Innovation Underlying Fluctuations in Total Factor Productivity and Economic Growth -- 1.12 Mobile Telephone Subscribers per 100 Inhabitants, by Region, 1994-2004 -- 1.13 Average Annual Growth of Internet Users per Capita -- 1.14 Typical Division of Labor in Global Production Networks -- 2.1 The Economic Dividend of Good Public Governance -- 2.2 The Four Interactive Pillars of the Knowledge Economy -- 2.3 Human Capital and FDI Performance -- 2.4 Knowledge-Based Competitiveness and Growth -- 2.5 The KAM Basic Scorecard for China and India -- 2.6 Relative Performance Over Time of Selected Countries on the Knowledge Economy Index -- 2.7 The Knowledge Economy and Current Economic Performance.

2.8 Country Scores on the Knowledge Economy Index in 1995 Correlated with Future Economic Growth -- 2A1.1 Basic Scorecard (Diamond Chart): Slovak Republic -- 2A1.2 Custom Scorecard: The Education Pillar in Estonia and Europe and Central Asia -- 2A1.3 Custom Scorecard: The Information Infrastructure Pillar in Finland, Korea, and South Africa -- 2A1.4 Relationships of KAM Indexes and Indicators -- 3.1 Enrollment Rates in Korea, 1970-2004 -- 3.2 The Stages of Industrial and Economic Development in Finland -- 3.3 Time Sequencing to Create a Virtuous Cycle of Change -- 4.1 How Do Firms in Developing Countries Rate Various Investment Climate Constraints? -- 4.2 More Competition Means More Innovation -- 4.3 Poor Countries Regulate Business the Most -- 4.4 Different Cluster Actors -- 5.1 Structure of Industrial Technology -- 6.1 Prerequisites for Capturing ICT-Induced Benefits -- 7.1 Trends in Gross Secondary Enrollment from 1995 to Most Recent Year -- 7.2 Some Countries Achieve Both High Performance Standards and Equitable Distribution of Learning Outcomes -- 8.2 Stylized Structure of the Indian Economy -- 8.3 Inward FDI Flows: India and China -- 8.4 WEF Growth Competitiveness Index Rankings: Active Reformers -- 8.5 Improvements in the Knowledge Economy Index in Eastern Europe, 1995-2005 -- 8.6 Economies with Untapped Potential as Revealed by the Knowledge Economy Index -- 8.7 Economies with Untapped Potential as Revealed by the Knowledge Index -- 8.8 Hierarchical Design and Sector Separation in the Soviet Innovation System -- 8.9 Benchmarking the Economic and Institutional Regime (EIR) in Selected African Countries and Comparators -- 8.10 Adult Literacy Rate in Selected African Countries, 1990-2004 -- 8.11 Gross Postsecondary Enrollment Ratio in Selected African Countries, 1991-2004.

8.12 Telephones (Mainlines and Mobile Phones) in Selected African Countries, 1990-2004.