Analysing Knowledge Disparity and Value Creation: Towards a K-Gini Coefficient

Abstract

In this article, the impact of knowledge on economic activity is discussed. We posit that a significant disparity in the knowledge level of its people is not conducive to the continued, long-term growth and development of a society. Hence, a measure for the disparity of knowledge within society is needed. Following a brief review of the literature on post-industrial societies and the Gini coefficient, a measure of knowledge disparity within societies based on their capability to link knowledge to value creation is formulated.

This claim is tested with published data from reliable and authoritative sources. Using statistics from economies across three blocs based on metrics for human development and value creation, we verify a causal relationship between our proposed K-Gini coefficient and a society’s propensity for growth and development. In this manner, a graphical framework that captures knowledge disparity and its inverse impact on value creation is derived. The idea of a Gini coefficient for knowledge disparity intuitively appeals to macro policy planners in that too much disparity may be stifle value creation and growth.

Keywords: knowledge society, development policy, knowledge disparity measures