New Economic Concept Created by Globalization: Knowledge Economy

In this study, knowledge economy, one of the new economic understandings brought by globalization that affects states, societies and organizations/firms in frequently discussed politic, economic, sociologic and technologic dimensions, is discussed. developments in information and communication technologies and accepting knowledge as an additional element to information producing elements not only strengthens globalization, but also lays the groundwork for transition to economy depended on knowledge. therefore, globalization and knowledge economy and/or the process of transition to knowledge economy influence each other. at this point, having the opportunity to execution in production and service in international arena as being depended on knowledge, the process of firms’ integration to the world economy began. this process accelerates both forming of knowledge economy and also rivalry and cooperation between the firms. the main purpose of this study is to discuss how knowledge becomes an economic power in the context of globalization, what the effects causing the occurrence of knowledge economy and the effects of knowledge economy on firms are.