Knowledge Absorption and Economic Diversification: the Case of Bahrain
Amer Al-Roubaie
Amer Al-Roubaie, Professor, Department of Economics, Ahlia University, Bahrain.
Manuscript received on 15 June 2019 | Revised Manuscript received on 11 July 2019 | Manuscript Published on 17 July 2019 | PP: 450-455 | Volume-8 Issue-1C2 May 2019 | Retrieval Number: A10740581C219/2019©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Knowledge is critical for socio-economic transformation. Countries that are lacking to financial and natural resources can invest in knowledge production to promote innovation and diversify the economy. Knowledge is a global good available for all interested in its use. Building capacity for ICTs could facilitate knowledge acquisition, absorption and distribution. In recent years, Bahrain has been making serious initiatives to diversify its economy from a resource-based to a knowledge-based economy. This is to reduce global financial vulnerability and foster economic growth. The aim of this paper is to examine Bahrain’s capabilities to promote economic diversification through participation in the global markets. Access to the global markets helps the country to reduce costs and speed up the process of development. Global access increases collaboration and encourages partnership between local and foreign firms to produce goods and services. In doing so, Bahrain can benefit from skills acquisition, technology transfer and innovation. The paper focuses on the importance of external knowledge in enhancing capabilities to diversify the economy. Bahrain needs to strengthen the fundamentals for building capacity for diversification by investing in ICTs, education, institutions and innovation.
Keywords: Knowledge, Globalization, Diversification, Innovation.
Scope of the Article: Social Sciences