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4 A L t L M I N I S T R Y O F E D U C A T IO N A N D N A T IO N A L E C O N O M IC S T R A IN IN G O F V IE T N A M U N IV E R S IT Y PRE-CONDITIONS FOR VIETNAM'S DEVELOPMENT TOWARD A KNOWLEDGE-BASED ECONOMY A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR OBTAINING THE DEGREE OF M A S T E R O F SC IE N C E IN D E V E L O P M E N T EC O N O M IC S BY NGUYEN MINH GIANG taro ĐAI HOC KTQD D A I n v J L ts^ I TR U N G T A w tS THÕNG TIN ĨH Ư V IỆ N HANOI, 2004 c M59 T A B LE OF CONTENTS IN TROD U CTIO N Background Purposes Research questions .: Research method CHAPTER 1: TH EO RETICA L FR A M EW O R K 1.1 Micro knowledge econom ics ■ • 1.2 Macro knowledge economics ••• 11 1.3 Knowledge gap and Intellectual Property rights 16 CHAPTER : EX PER IEN C ES OF SELECTED C O U N T R IE S 21 Australia Strategy 2.2 2.3 2.4 EU Accession countries China Strategy ••••• Lessons for developing countries 25 29 CHAPTER : VIETN AM SITU A TIO N 38 3.1 Knowledge Assessment Method 38 3.2 Major economic indicators of Vietnam 40 3.3 Knowledge Assessment of Vietnam •••••47 CHAPTER : VIETN A M STRA TEG Y TO A KN O W LEDGE-BASED EC O N O M Y •••••• ••••■ ••••' 51 4.1 Analysis of objective 53 4.2 Stakeholders A nalysis ■•••••• 54 4.3 Logframe M atrix CONCLUSION R E F E R E N C E S 58 63 64 INTRODUCTION Background For the last two hundred years, neo-classical economics has recognized only two factors o f production: labor and capital This perception is now changing Information and knowledge are replacing capital and energy as the primary wealth-creating assets, just as the latter two replaced land and labor 200 years ago In addition, technological developments in the 20th century have transformed the majority o f wealth-creating work from physically based to "knowledge-based.” Technology and knowledge are now the key factors o f production We are now in the era o f knowledge economics and knowledge economy K n o w le d g e e c o n o m ic s stu d ie s th e e n tire sp e c tru m o f h u m a n k n o w le d g e p ro d u c tio n , d is trib u tio n , an d c o n s u m in g b e h a v io r in th e re la tio n s h ip to th e a llo c a tio n o f s c a r c e r e s o u r c e s K n o w le d g e -b a s e d e c o n o m y is a n e c o n o m y in w h ic h k n o w le d g e is th e k e y re s o u rc e Many countries are preparing and implementing national strategies to knowledge-based economy Each country, based on its conditions and situation, should select an appropriate way o f achieving these goals Developing countries, including Vietnam, have to face many challenges in economic development Poor countries and poor people differ from rich ones not only because they have less capital but also because they have less knowledge N a rro w in g an d c lo s in g th is g ap ta k e s lo n g tim e , b u t i f d e v e lo p in g c o u n trie s p o s o n e th e ta s k to in c r e a s e th e ir c a p a c ity to u s e k n o w le d g e , th e y w ill fa ll b e h in d ad v an ced on es, an d d isa p p o in ted seq u en ces fo r th e ir d e v e lo p m e n t p ro s p e c ts w ill b ẹ h a rd to re m e d y This is the right time for Vietnam and other developing countries to elaborate and implement national strategies to transition to a knowledgebased economy This thesis is expected to contribute to this cause by giving an outline of strategy to establish pre-conditions for Vietnam’s development toward a knowledge-based economy Purposes The thesis attempts to pursue following aims: 1) To review, develop theoretical framework o f knowledge economics 2) To construct a strategy outline to establish pre-conditions for Vietnam moving toward a knowledge-based economy Research questions The thesis seeks to answer the following questions: What are knowledge economics studies about? What is a knowledge-based economy and the roles o f knowledge in economic development? How other countries plan and implement their national strategies to a knowledge-based economy? What lessons may be useful for developing countries? What is the current economy situation in Vietnam in comparison with other countries and the process o f transition to a knowledge based economy? How can we elaborating a strategy to establish pre-conditions for Vietnam 's development toward a knowledge-based economy? Research method • The study combines historical and comparative as well as analytical method to examine the posed problems In Chapter One, the paper reviews and develops some fundamental concepts and theories o f knowledge economics, knowledge for development In Chapter Two, appropriate national strategies are selected to review based on their economic situations and the similarities between these countries and Vietnam In Chapter Three basic knowledge economic indicators will be analyzed to understand the position o f Vietnam on the way to a knowledge-based economy Using a modem and effective method, Logical Framework Approach, the last chapter will frame an outline o f strategy to establish pre-conditions for Vietnam's development toward a knowledge-based economy in four key areas: 1) Economic and institutional regime 2) Innovation system 3) Information infrastructure 4) Education system CHAPTER 1: THEORETICAL FRAMEWORK General Knowledge Economics was developed by Joseph Schumpeter and Friedrich Hayek in the 1920s and 1930s and formalized by Kenneth Boulding and Fritz Machlup during the 1950s They shifted attention to the roles played by the production o f new knowledge in economic growth A typical works, "The Production and Distribution o f Knowledge in the United States" - Machlup (1962), reported the first research on the economics o f knowledge Machlup introduced the concepts o f the “brain worker,” “knowledge industry,” “information economics,” and “information economy” that have influenced popular writers such as Robert Solow , Alvin Toffler, Peter Drucker, Edward Swanstrom as well as other academic scholars In this chapter, the thesis reviews and develops fundamental concepts and theories o f micro knowledge economics, macro knowledge economics and knowledge for development 1.1 Micro knowledge economics Knowledge economics Knowledge economics is a science, applied science, and a profession As a science, it is the study o f how society and organizations allocate resources when producing, distributing, and consuming knowledge It is the study of the entire spectrum o f human knowledge production, distribution, and consuming behavior and activities in the relationship to the allocation o f scarce resources It answers the questions of: - What knowledge should we produce/diffuse/use? - How much knowledge should we produce/diffuse/use? - For whom should it be produced/diffused? - Who should produce/diffuse/use it? Knowledge economics is now being constructed, and these questions are now being answered Knowledge economics inputs knowledge from all fields o f study such as microeconomics, macroeconomics, international economics and economics o f development Knowledge production The creation o f a knowledge claim, practice, or knowledge good is knowledge production Firms creating, manufacturing, or producing knowledge are called knowledge producers Examples o f these firms include: Consultants firms - executing tacit knowledge and transferring tacit and codified knowledge to firms requiring knowledge as an input Scientific Labs producing patents, Schools, Universities, Institutes, Research and reporting firms, Training firms These are typical knowledge producers However, any agent can be a knowledge producer in wider aspects People and firms who seek to exchange tim e, attention, money, and/or other currencies, to knowledge are called knowledge consumers While not all firms engage in external market activities, they, including individuals, have internal knowledge market activities where knowledge is exchanged for time, attention, recognition, and other currencies An example o f an internal knowledge market is a community o f practice where practices are supplied by practice producers to practice consumers in exchange for attention, time, recognition, and other forms o f currencies There are even markets in the brain where new knowledge is competing with older knowledge to gain greater credit Knowledge goods B y viewing knowledge as a good,, we begin to see knowledge in economic terms A good example that is easy to visualize is a book It is filled with knowledge claims, and it is obviously a good It has a price It has value, perhaps more value to one person than to another How people choose one book over the other? Am attractive cover? A quote from an expert extolling the value o f the knowledge in the book? Consumers decide on which book to buy based on its perceived utility Cost benefit analysis will help you decide i f your investment o f time and energy to read the book is really worth the knowledge you get out o f it Perhaps a book that is easier to read and understand would be more valuable because it does not require as big an investment (o f time or attention) from you Perhaps a book that is harder to read is worth the effort for it might have greater utility than the one that was easier to read A knowledge consumer will have to determine whether or not money, time, attention, and cognitive costs make him worth reading the more difficult books A g ood o r e ommodity i s a ny t angible e conomic p roduct that contributes directly or indirectly to the satisfaction o f human needs Knowledge goods are any combination o f tacit and explicit knowledge, along with any cognitive artifacts, that is delivered by a knowledge supplier to a knowledge consumer Knowledge can range from very tacit to very explicit Knowledge also faces scarcity similar to other goods For each technological change, new knowledge comes in while old knowledge is sometimes discarded When imiovations are introduced to a firm, there is never enough knowledge to actually put that innovation to use When knowledge is scarce, the value o f the knowledge is high Once knowledge becomes more abundant, the cost and value o f that knowledge decreases Herbert Simon hit upon the commodity/scarcity conundrum regarding knowledge economics He said, "In an information-rich world, the wealth o f information means a dearth o f something else: a scarcity o f whatever it is that information consumes What information consumes is rather obvious: it consumes the attention o f its recipients Hence a wealth of information creates a poverty o f attention." For attention, one can also substitute "time." Knowledge can also be exploited by speculators An example is a patent It controls access and usage for the creator A speculator might buy up patents or copyrighted materials for the purpose o f brokering them to knowledge consumers Hence, the information in the patent really is a good Knowledge markets A powerful concept in economics and for knowledge manager is knowledge markets Knowledge markets are places where knowledge is exchanged for other goods or money An obvious market is a bookstore, but a work group in a firm is also a knowledge market Your co-workers want your knowledge They definitely exchange time, attention, and cognitive resources for that knowledge They can also pay in social capital by giving you credit and reputation for that knowledge When they choose to spend their resources for your knowledge rather than someone else's, there is an opportunity cost In knowledge markets, consumers need knowledge just as they need food Both have a price It is up to the consumer to decide i f he or she wants to pay the asking price for that loaf o f bread or that knowledge good Sometimes the price is too high, and the consumer will choose to "purchase" another item instead For knowledge consumption, the price might concern money It could include the total time, attention, cognitive, and social price you pay for that knowledge Anyone who is a source o f knowledge is a potential supplier A design engineer supplies the knowledge gained through her skills to the rest o f her team You, as a knowledge manager, supply your expertise to your company Recent corporate catchphrases such as "Delight the Customer" and other programs to satisfy customers' are applicable to knowledge suppliers There are both internal and external knowledge customers Your boss, when he asks you for some know-how, becomes your customer or consumer You supply him with what she needs It is economics at work Knowledge supplv/demand expenditure on education was 2.3 per cent o f GNP, Malaysia spent 5.3 per cent, Thailand 4.2 per cent, Korea 3.7 per cent, and Vietnam 1.7 percent This analysis, based on the data available, has briefly summarized the results o f Vietnam’s knowledge assessment in a comparative way and pinpointed some key issues in Vietnamese current system o f knowledge acquisition, adaptation, creation, and application With this background, we can elaborate a national strategy to establish pre-conditions for Vietnam's development toward a knowledge-based economy in the next chapter 50 CHAPTER : VIETNAM STRATEGY TO A KNOWLEDGE-BASED ECONOMY After reviewing, developing knowledge economics theories in Chapter 1, examining some national strategies to knowledge-based economies in Chapter 2, and making a knowledge assessment o f Vietnam in Chapter 3, we can reach our final goal: National strategy to establish pre-conditions for Vietnam's development toward a knowledge-based economy In this chapter, to design a national strategy, we use a modern and effective approach: Logical Framework Approach (LFA) This approach is used in project management and even in wider context such as sector or national strategy Before going further in applying this approach, we should review some main ideas and techniques o f this method The LFA is an analytical tool to assist in the planning, design and management o f project It is a systematic way o f identilying the elements o f a project and the linkages between them to provide a logical, concise, and objective analysis o f project design Donor agencies, governments, firms, and individuals can use the logframe to plan, manage, monitor and evaluate projects or strategies The logframe methodology is useful throughout the project management cycle in: Identifying, Planning, Designing, Implementing, Monitoring The formulation o f a logframe involves a systematic analysis o f the different components o f a project It is a stepwise and logical process: - The first step is identification o f a goal or vision based on rationale (the reasons) for project - The second step is formulation o f the desired outcomes or objectives in consultation with all stakeholders - The third step is determination o f the outputs, which describe the expected results o f the project 51 _ The final step is the descriptions o f project activities, which are the actions to be carried out, and the resources required to implement the project The result o f this analysis is a logframe matrix, which is a convenient way o f setting out the design elements o f a project 52 4.1 Analysis of objective V IE T N A M T O A K N O W L E D G E B A S E D E C O N O M Y O B JE C T I V E S T R E E 4.2 Stakeholders Analysis Stakeholder Role, Main objective Positive impact/benefit Negative impact cost/risk Net impact Government Sector G o v ern m en t E c o n o m ic D e v e lo p m e n t, + T o f u lf ill i ts c o m m i s s i o n s C o n d u c tin g n a tio n a l s tr a te g y M in is try o f E d u c a tio n an d C o n d u c tin g e d u c a tio n s y s te m : T r a in in g - L if e lo n g le a rn in g n e tw o rk T o f u l f il l its c o m m i s s i o n s - L o w q u a litie s o f + e d u c a tio n - D is ta n c e le a rn in g s y s te m a n d s o ftw a r e - P ro v id e A c c re d ite d c o u rse s - R e s tru c tu re E d u c a tio n s y s te m and c u rric u lu m - E n c o u r a g e m o re fle x ib ilitie s an d c o m p e titio n s T o f u l f il l i ts c o m m i s s i o n s - D if f ic u lt to m a k e M in is try o f S c ie n c e an d C o n d u c tin g In n o v a tio n s y s te m : T e c h n o lo g y - F in a n c e R & D IP b e c o m e tru e - S tre n g th e n P R s y s te m - B u d g e t co n stra in + - E s ta b lis h T e c h n o lo g y M a rk e ts T o f u l f il l i ts c o m m i s s i o n s - B u d g e t co n stra in M in is tiy o f C o n d u c tin g In f o r m a tio n In fra s tru c tu re : T e le c o m m u n ic a tio n - L i b e r a l i z e t h e I T i n d u s tr y - D iffic u lt to e x p a n d - W i d e n a p p l i c a t i o n o f I T in S t a t e s e c t o r s t e le s e r v i c e s t o r u r a l - N a r r o w d ig ita l d iv id e areas + - E n f o r c e e - c o m m e r c e le g is la tu re 54 M in is try o f L a b o r T o f u lf ill i ts c o m m i s s i o n s C o n d u c tin g la b o r fo rc e : - L a r g e tio o f + u n e d u c a t e d l a b o r in - I n c r e a s e tio o f e d u c a te d an d la b o r f o r c e k n o w le d g e w o rk e rs - L o w q u a lity o f - R e s tr u c tu r e v o c a tio n a l tra in in g v o c a tio n a l tra in in g , - i m p r o v e q u a l i t y o f s k ill t r a i n i n g s y s t e m - O u td a te d to o ls fo r te a c h in g M in is try o f F in a n c e T o f u l f il l i ts c o m m i s s i o n s C o n d u c tin g p u b lic fin a n c e : - B u d g e t co n stra in + - C a p ita l d in - B u d g e t p la n n in g f o r s tr a te g y - E s ta b lis h a n d m a n a g e n a tio n a l R & D a n d v e n tu r e fu n d C e n tra l B a n k C o n d u c tin g f in a n c e a n d b a n k in g s y s te m : T o fu lf ill its c o m m i s s i o n s - D iffic u lt to + e q u a l i z e t h e le n d i n g - E n c o u r a g e m o r e co m p e titio n an d p r o c e s s f o r p u b lic e q u a lity and p riv a te se c to r - W i d e n I T a p p l i c a t i o n in b a n k i n g a n d fin a n c e s e c to r T o f u l f il l its c o m m i s s i o n s s t a t e S e c u r i t i e s C o n d u ctin g S to c k M a rk e ts: C o m m is s io n - E s ta b lis h v e n tu re (h ig h te c h ) s to c k - U n d e v e lo p e d sto c k + m a rk e ts a n d in v e sto rs m a rk e t Foreign Organization + W o r ld B a n k a n d o th e r - C o n s u l t i n g a n d h e lp c l i e n t c o u n t r i e s to T o f u l f il l i ts c o m m i s s i o n s - M a y b e lo s t if e la b o tin g s tr a te g y P r o f i t f r o m le n d i n g p r o j e c t p r o je c ts fa il d o n o rs - I n v e s t in V i e t n a m f o r p r o f i t - P ro f it fro m in v e s tm e n t an d - M a y b e lo st + /- - T e c h n o lo g y tra n s fe r te c h n o lo g y tra n sfe r - C o - o p e r a t e w i t h d o m e s t i c i n s t it u ti o n - P ro f it fro m e x c h a n g e - M a y b e lo st + F o re ig n R e s e a rc h In s titu tio n s - E x c h a n g e s tu d e n ts a n d s c ie n tis t s tu d e n ts a n d s c ie n tis ts p ro te c te d k n o w h o w _ L e n d in g a n d te c h n ic a l a s s is ta n c e F o re ig n In v e s to rs - E x c h a n g e k n o w le d g e a n d id e a s - P r o f it fro m c o n s u ltin g a c tiv itie s O v e rs e a V ie tn a m e s e - K n o w le d g e tra n s fe r - P ro f it fro m in v e s tm e n t and - M a y b e lo st + /- 55 p e o p le - I n v e s t in c o u n t r i e s p r o j e c t exch an g e know how D o m e s tic O r g a n iz a tio n C o m m e rcia l B a n k s - S p o n s o r fo r R & D an d k n o w le d g e b a s e d - P r o f i t f r o m f u n d in g - H e s i t a t e t o fu n d e n te rp ris e s k n o w le d g e b a s e d firm s an d b ecau se o f no p ro je c ts c o lla te l a s s e ts + /- - M a y b e lo st S to c k M a rk e t - S p o n s o r fo r R & D a n d k n o w le d g e b a s e d e n te rp ris e s F irm s - P r o d u c e k n o w le d g e p ro d u c t fo r p ro fit - P r o f it fro m s e llin g p ro d u c ts - M a y b e lo s t - K n o w le d g e m a n a g e m e n t - C a n h ir e w e ll e d u c a t e d l a b o r - B r a i n d r a i n to - C o - o p e r a t e w i t h R e s e a r c h I n s t i tu t io n , - C ut dow n cost o th e r firm s - P ro d u c e k n o w le d g e - P ro f it fro m se llin g - L ost - C o - o p e r a t e w i t h o t h e r I n s t i tu t io n , f i r m s k n o w le d g e -g o o d s - B r a i n d r a i n to - E s ta b lis h k n o w le d g e -b a s e d firm s - G e t m o re k n o w le d g e f ro m o th e r c o u n tr ie s + /- u n iv e rs itie s a n d o th e r s c ie n tis t - L in k k n o w le d g e an d m a rk e t R e s e a r c h In s titu tio n s + o v e r s e a o rg a n iz a tio n s U n iv e rs itie s - C h a n g e th e w a y o f le a rn in g a n d - P ro f it fro m te a c h in g , - H a v e to c h a n g e te a c h in g d is ta n c e le a rn in g c o u r s e s o ld p r a c t i c e s + - I m p ro v e q u a litie s o f c o u r s e s - L i n k w it h f i r m s , m a r k e t a n d f o r e i g n in s t it u ti o n s P e o p le a n d In d iv id u a ls S tu d e n ts - L e a rn in g fo r fu tu re c a r e e r - A c q u ire m o re k n o w le d g e - C o s t o f le a rn in g - B e p o te n tia l k n o w le d g e a ss e ts - M a y b e p a id h i g h e r : - H a v e to c h a n g e - A p p ly fo r d is ta n c e le a rn in g c o u rs e s + o ld p r a c t i c e s - H a v e to c o m p e te in a g l o b a l w o r l d In v e n to rs - P ro d u ce k n o w h o w - P r o f i t f r o m h is i n v e n t i o n - B e p ro te c te d b y IP u s e s o f h i s i n v e n ti o n In v e s to rs - I n v e s t in k n o w l e d g e s t o c k - P ro f it fro m in v e s tm e n t - L ost - L o s t f o r m ille g a l + + /- 56 C u s to m e rs - P u rc h a s e k n o w le d g e g o o d s - S a tis f a c tio n w h e n u s in g - S o u rc e o f in fo rm a tio n a b o u t c u s to m e r k n o w le d g e g o o d s - M a y b e lo st needs W o rk e rs - B e t r a i n e d w i t h h i g h e r s k i l ls - M a y b e p a id h i g h e r - M a y b e in + /- u n e m p lo y m e n t sta tu s b e c a u s e o f la c k in g re q u ire d s k ills P e o p l e in r u r a l a r e a s - U s e r o f te le c o m m u n ic a tio n - S e iz e m o r e o p p o rtu n itie s fo r - W id e r g ap b e ca u se - B e t r a i n e d w i t h h i g h e r s k i l ls a n d w a y o f n a r r o w in g k n o w le d g e an d o f s lo w c a tc h up m a k in g m o n e y liv in g g a p - H ig h c o s t o f + /- e d u c a tio n an d te le c o m m u n ic a tio n S7 4.3 Logframe Matrix Strategy description Key indicators Means of verification K A M sco re card s S t a t i s t i c d a ta Assumption/Risk GOAT, V ie tn a m to K B E OBJECTIVES - T o s t r e n g t h e n E c o n o m i c a n d i n s t it u ti o n a l r e g i m e In d ic a to rs o n c o m p e titio n s 1 T o s tre n g th e n d o m e s tic a n d fo re ig n c o m p e titio n T o e s ta b lis h v e n tu re c a p ita l m a rk e t T o e n fo rc e IP R S y s te m - N o o f in v e n tio n s , an d T o i n c r e a s e r a t i o o f k n o w l e d g e w o r k e r s in l a b o r te ch n o lo g y tra n sfe rs fo rce - R a t i o o f w o r k e r s in l a b o r T o n a o w k n o w le d g e g a p fo rce 2.1 2 - « S t a t i s t i c d a ta T o e s ta b lis h a D y n a m ic in f o rm a tio n in fra s tru c tu re - T o l i b e r a l i z e t h e t e l e c o m m u n i c a t i o n i n d u s tr y - In d ic a to rs o n c o m p e titio n s R a tio o f p o o r p e o p le u se S ta tis tic d a ta T o e x p a n d c h e a p t e l e c o m m u n i c a t i o n s e r v i c e s to th e p o o r - T o e la b o te a n d im p le m e n t e -c o m m e r c e sy s te m te le c o m m u n ic a tio n se rv ic e s T o e n c o u r a g e a p p l i c a t i o n o f I T in a ll s e c t o r s - T o d e v e lo p s o f tw a r e in d u s try tra n sfe r N o o f w e b s ite an d m o n e y - W e b d a ta * N o a n d tio o f IT liz e d se c to rs - R a t i o o f s o f t w a r e in d u s tr y in GDP 3 3 T o im p ro v e e f f e c tiv e n e s s o f in n o v a tio n sy s te m - N o o f a g r e e m e n ts T o e n co u g e c o -o p e tio n s am o n g re s e a rc h - N o o f ta le n ts o rg a n iz a tio n , firm s , g o v e r n m e n t an d m a rk e t - A m o u n t o f m o n e y th e y T o a t tr a c t f o r e ig n V i e tn a m e s e ta le n ts co n trib u te an d k n o w le d g e T o e x p a n d c o - o p e r a t io n s w ith f o re ig n r e s e a r c h p a c k a g e th e y sh a re in s titu tio n s - GDP S t a t i s t i c d a ta R e p o rt A m ount o f m oney 5.8 4 T o in c r e a s e fu n d in g f o r R & D T o im p r o v e q u a litie s a n d fle x ib ilitie s o f e d u c a tio n - N o o f d is ta n c e c o u r s e s sy ste m - N P V , I R R , o th e r in d ic a to rs T o p ro v id e d is ta n c e le a rn in g co u rse T o m o d e r n iz e th e m e th o d o f le a rn in g a n d te a ch in g - I S O s t a n d a r d in e d u c a t i o n S ta tis tic d a ta - R a tio o f a p p lic a tio n m o d e m R ep o rt le a rn in g a n d t e a c h in g m e th o d IS O - N o o f in te rn a tio n a l o rg a n iz a tio n T o re s tru c tu re e d u c a tio n sy ste m 4 T o i n c r e a s e e d u c a t i o n q u a l i t i e s a n d d e g r e e to i n s t it u ti o n s a c c e p t e d V i e t n a m in te rn a tio n a l l e v e l d eg ree OUTPUTS 1 Law _ — r— - — r e g u la tio n a n d o th e r p o lic ie s o n e q u a litie s a n d c o m p e t i t i o n s in d o m e s t i c a n d f o r e i g n m a rk e ts - L a w a n d re g u la tio n s a re - N o o f la w , re g u la tio n s an d e n fo rce d d o c u m e n ts p a s s e d an d im p le m e n te d S ta tis tic d a ta - M a rk e t a cts R e p o rt - K n o w le d g e w o rk e rs a re V e n tu re c a p ita l m a rk e t - V e n tu re c a p ita l m a rk e t L a w , re g u la tio n s - o n I P R e s ta b lis h e d e m p lo y e d K n o w le d g e w o rk e rs - N o an d r a tio o f k n o w le d g e - K n o w le d g e p a c k a g e s a re u se d K n o w le d g e p a c k a g e s w o rk e rs L a w , r e g u l a t i o n s o n l i b e r a l i z i n g th e e n fo rce d d o c u m e n ts p a s s e d an d S ta tis tic d a ta C h e a p te le c o m m u n ic a tio n s e rv ice s im p le m e n te d R e p o rt L a w , p o lic ie s , re g u la tio n s on e -c o m m e rc e - P rice an d n u m b er o f - S o f tw a re a re p u rc h a s e d an d te le c o m m u n ic a tio n s e rv ic e s u sed te le c o m m u n ic a tio n in d u s try 2 - L a w a n d re g u la tio n s a re - N o o f la w , re g u la tio n s an d S o ftw a re S o f tw a re C o -o p e tio n s a g r e e m e n ts , c o n tr a c ts , m e m o n d u m ; p ro d u c ts - N o o f so ftw a re p ro d u ce d - A g re e m e n ts , c o n tr a c t c a n b e - N o o f a g re e m e n ts and im p le m e n te d c o n tr a c t s ig n e d an d P o l i c i e s ; O v e r s e a V ie tn a m e s e ta le n ts ; k n o w le d g e im p le m e n te d S ta tis tic d a ta 3 C o -o p e tio n s a g r e e m e n ts , c o n tra c ts , - V a lu e o f c o n tra c ts R e p o rt m e m o n d u m ; p ro d u c ts - M o n e y is u s e d e f f e c tiv e ly - N o o f V i e tn a m e s e ta le n ts - A m o u n t o f m o n e y sp en t M oney D is ta n c e le a rn in g c o u r s e - N o an d q u a litie s o f d is ta n c e D o c u m e n ts , b o o k s , re g u la tio n s , p o lic ie s o n le a rn in g c o u r s e s a n d b o o k s m o d e r n iz in g m e th o d o f le a rn in g a n d te a c h in g - T a le n ts a r e u se d a n d e x p lo re d - N o o f e d u c a tio n fa c ilitie s - D is ta n c e le a rn in g c o u r s e s a n d o th e r m a te r ia ls a re u s e d S ta tis tic d a ta e ffe c tiv e ly 59 R e s tru c tu re d e d u c a tio n sy ste m - C h a n g e s in e d u c a t i o n 4 E d u c a t io n q u a litie s s tru c tu re R e p o rt - A c c e p t e d q u a li t ie s - I S O s t a n d a r d in e d u c a t i o n ACTIVITIES 1 E d i t a n d im p le m e n t L a w , re g u la tio n a n d o th e r _ - C o m p le te d tim e - C o n f lic tin g la w s a n d p o l i c i e s o n e q u a l i t i e s a n d c o m p e t i t i o n s in re g u la tio n s d o m e s tic an d fo re ig n m a rk e ts E d it, p a s s L a w o n V e n tu r e ca p ita l M a rk e t - I n v e s to r s a fra id o f h ig h r is k , so - C o m p le te d tim e t h e y h e s i t a t e t o in v e s t E s ta b lis h V e n tu re F u n d s E s ta b lis h M a n a g e m e n t B o a rd P r o p a g a te to p u b lic a n d in v e s to rs a b o u t th is fu n d C o m e in t o b e i n g o f t h i s f u n d s m a r k e t S tra te g y - P e o p le d o n o t w a n t to o b e y IP E d it L a w , re g u la tio n s re p o rt la w b e c a u s e t h e y c a n u s e o f E s ta b lis h a n e tw o rk su p e rv is o rs - N o o f la w , re g u la tio n s , c h e a p , ille g a l c o p ie s E s ta b lis h a n a tio n a l IP fu n d s w h ic h p a y fo r d o c u m e n t s e d it e d - B u d g e t c o n s tra in to e s ta b lis h a IP fu n d c o p y r i g h t s a n d t h e n s h a r e it w i d e l y t o p u b l i c - M a y b e lo s t in n e g o tia tio n s A c tiv e ly p a rtic ip a te in T R E P s O p e n c l a s s e s to e d u c a t e k n o w le d g e w o r k e r s D is trib u te fre e o r c h e a p a n d re le v a n t k n o w le d g e - L a c k o f k n o w le d g e o f th e p o o r - N o o f c la s s e s an d w o rk ers p a c k a g e s to ru l a r e a s a n d th e p o o r th o u g h a tte n d te le c o m m u n ic a tio n s e rv ic e s - N o o f k n o w le d g e p a c k a g e s an d fa r d is tn a c e p e o p le - fr r e le v a n t k n o w le d g e p a c k a g e s p ro v id e d 60 ,2 E d i t la w , r e g u la tio n s o n lib e liz in g th e t e l e c o m m u n i c a t i o n i n d u s t r y P u t it in p r a c t i c e 2 D istrib u te te le c o m m u n ic a tio n se rv ice s E d it la w , p o lic ie s , re g u la tio n s o n e -c o m m e r c e (e s p e c ia lly T d e la w ) - W illin g n e s s o f - N o o f l a w , r e g u l a t i o n s e d it e d te le c o m m u n ic a tio n co m p a n ie s - N o o f se rv ice s to d e liv e r c h e a p s e r v ic e s fo r th e p o o r a n d fa r d is ta n c e a re a s - L a c k o f k n o w le d g e an d - T im e c o m p le te d aw aren ess o f n e ce ssa ry o f e- B u ild in g a n e tw o rk o f n o n c a s h p a y m e n ts p r o c e s s in g o v e r n m e n t s e c t o r s co m m erce R e p la c e h a n d -b a s e d p r o c e s s b y c o m p u te r-b a s e d - L a c k o f k n o w le d g e o n IT - T im e c o m p le te d a p p lic a tio n E d it a n d im p le m e n t p re fe re n tia l p o lic ie s o n - L a c k o f c o -o p e tio n s , s o ftw a r e in d u s try a n d e d u c a tio n k n o w le d g e a n d la n g u a g e s - H a v e to f a c e w ith o th e r s tro n g c o m p e t i t o r s in s o f t w a r e in d u s trie s F in d p a rtn e rs , d is c u s s a b o u t c o lla b o tin g a c tiv itie s , sig n a g r e e m e n ts o r c o n tr a c ts , p ro d u c e - N o o f p a rtn e rs a g r e e to c o - W illin g n e s s o f p a rtn e rs to c o o p e te o p e te - C a n n o t s e llin g g o o d s b e c a u s e g o o d s and se rv ice s , p u rch a se s E d it a n d im p le m e n t p o lic ie s 3 F in d p a rtn e rs , d is c u s s a b o u t c o lla b o tin g - T im e c o m p le te d a c tiv itie s , sig n a g r e e m e n ts o r c o n tr a c ts , p ro d u c e g o o d s an d S e rv ic e s, p u rc h a s e s B u d g e t p la n n in g a n d u s in g e f f e c tiv e ly - T im e c o m p le te d S tra te g y o f s u p p ly an d d e m a n d g ap re p o rt - B u d g e t co n stra in C o m p ile d is ta n c e le a rn in g c o u rs e s ; s e t up ' - T im e c o m p le te d e d u c a tio n n e tw o rk ; m a rk e tin g ; p ro v id in g - N o o f m a rk e tin g s tra te g y - T h e a c c e p ta n c e o f s o c ie ty o n c o u r s e s ; g r a n t s c h o la rs h ip s an d a c c re d ite d - N o o f d eg ree q u a litie s o f d is ta n c e le a rn in g d eg rees co u rse C o m p ile d o c u m e n ts , b o o k s and O p e n c la s s to c o a c h te a c h e r s o n n e w te a c h in g m e th o d s ; a n d te a c h s tu d e n ts o n n e w le a rn in g - W illin g n e s s to c h a n g e m e th o d - N o o f c la s s e s an d te a ch e rs, S tra te g y o f le a rn in g an d te a c h in g s t u d e n t s a t te n d re p o rt - H e s ita tio n to p ro v id e fe e d b a c k m e th o d s; E s ta b lis h a f e e d b a c k m e c h a n is m b e tw e e n te a c h e rs an d le a rn e rs - N o o f f e e d b a c k in fo rm a tio n t e a c h e r s a n d s tu d e n ts flo w - A fr a id o f c h a n g in g p e rso n n e l R e s tr u c tu r e e d u c a tio n s y s te m : p e rs o n a l, o rg a n iz a tio n , p u rp o s e , a ctio n m e c h a n ism 4 in fo rm a tio n o n a ss e ss m e n t o f H e ld c o n f e r e n c e s ; e d it a n d im p le m e n t n a tio n w h e n re s tr u c tu r in g e d u c a tio n - N o o f c o n f e r e n c e s an d p e o p le s y ste m a t te n d p r o g r a m t o i m p r o v e e d u c a t i o n q u a li t ie s 62 CONCLUSION V ie tn a m is s till in th e tra n s itio n fro m a c e n tr a lly p la n n e d e c o n o m y to a m a rk e t one w ith m u lti e c o n o m ic s e c to r s o p e tin g in th e m a rk e t m e c h a n is m V ie tn a m is a ls o in th e in e v ita b le tra n s itio n to a k n o w le d g e b a s e d e c o n o m y T o c o m p le te th e s e ta s k s , our c o u n try h a s to o v e rc o m e m a n y c h a lle n g e s T h is th e s is h o p e s th a t it c a n m a k e a u s e fu l c o n trib u tio n to th e s e h is to r ic ta s k s T h e th e s is h a s iu st m a d e re s p o n s e s to r e s e a r c h q u e s tio n s sta ted in th e In tro d u c tio n s e c tio n Som e b a s ic c o n c e p ts su ch as k n o w le d g e good, k n o w le d g e m a rk e t, k n o w le d g e su p p ly , d e m an d , p ro d u c tio n , k n o w le d g e e f f ic ie n c y a re r e v ie w an d d e v e lo p e d to e s ta b lis h a m ic r o k n o w le d g e fo u n d a tio n fo r fu rth e r stu d ie s th e ro le o f k n o w le d g e in m a c ro k n o w le d g e e c o n o m ic s K n o w le d g e , te c h n o lo g y , and in fo rm a tio n a re ta k e n in to p ro d u c tio n fu n c tio n an d a g e n e l m o d e l to fin d o u t th e c o n d itio n fo r s im u lta n e o u s e q u ilib riu m in fo u r m a rk e ts: p ro d u c t, m o n e y , la b o r, and te c h n o lo g y K n o w le d g e g a p , in te lle c tu a l p ro p e rty rig h ts, an d th e ro le o f k n o w le d g e fo r d e v e lo p m e n t a re e x a m in e d to m a k e so m e s u g g e s tio n s fo r d e v e lo p in g c o u n trie s to b e n e fit m o re in a lo c a liz in g w o rld F u rth e r, in c h a p te r , th e th e s is re v ie w s n a tio n a l stra te g ie s o f A u stra lia , E U A c c e s s io n c o u n trie s and C h in a to le a rn r e le v a n t lesson 's and e x p e rie n c e s o n th e ro ad to k n o w le d g e b a s e d e c o n o m ie s B e fo re e la b o tin g a n a tio n a l stra te g y to e s ta b lis h p re -c o n d itio n s fo r V ie tn a m 's d e v e lo p m e n t to w a rd a k n o w le d g e -b a s e d e c o n o m y , th e th e s is m a k e s a p rim a ry k n o w le d g e a s s e s s m e n t o f V ie tn a m in c o m p a ris o n w ith c o u n trie s a ll o v e r th e w o rld In th e la st c h a p te r, u sin g L o g ic fra m e a p p ro a ch , an o u tlin e fo r V ie tn a m stra te g y in fo u r m a in p illa rs : 1) E c o n o m ic a n d in s titu tio n a l re g im e ) E f f e c t iv e In n o v a tio n sy ste m ) D y n a m ic In fo rm a tio n in fra stru ctu re ) E d u c a te d an d s k ille d p o p u la tio n A ll sta k e h o ld e rs in c lu d in g g o v e rn m e n t, b u s in e s s s e c to r s , a c a d e m ic s e c to rs , fo re ig n e rs and in d iv id u a ls sh o u ld an d h a v e to p a rtic ip a te in th is tra n sitio n L e t us u n ite to c o m p le te th is h is to ric ta sk 63 REFERENCES E n g lis h [1] M a cro eco n o m ic theory and p o licy - 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