In the last issue of Kerala Economy, we articulated Kerala budget 2021-22 as a blueprint for a great leap forward given its focus on transforming Kerala to a Knowledge Economy.  There is hardly any economy which is not knowledge based. However, a knowledge economy is different in the sense that it is based increasingly on knowledge-intensive activities, implying greater reliance on intellectual capital rather than physical inputs. Hence, unlike the traditional economy wherein land, labour, capital and organisation are considered basic factors of production, 'knowledge' is the key resource in a knowledge-based economy. The knowledge could be scientific which is often codified and an outcome organised scientific enquiries. In contrast to the scientific knowledge, there could be synthetic knowledge which is often experience based and remain tacit and uncodified.

If knowledge is the key resource, learning has to be the key process. Hence, the key challenges in transforming Kerala to a knowledge economy include; First, creating an institutional architecture that facilitates learning of individuals and organisations regardless of their economic and social status. Secondly, and more importantly, to ensure that all types of knowledge are fully utilised to guarantee an inclusive knowledge economy with shared prosperity. Kerala budget 2021-22 aimed at addressing these challenges through building the infrastructure for the knowledge economy, innovation system and facilitating the process of skilling, re-skilling and upskilling.

Addressing these challenges is easier said than done because the road ahead is rocky. Hence, Gulati Institute of Finance and Taxation (GIFT) organised an international consultation towards articulating the know-how of transforming Kerala to a knowledge economy by harnessing its unique characteristics. Jointly organised with GLOBELICS (an international network of innovation scholars; www.globelics.org), the consultation had the participation of the Chief Minister and Finance Minister of Kerala apart from senior policy makers and, technocrats. The deliberations and sharing of experience by the scholars of eminence from about 25 countries from Japan to Costa Rica was especially insightful.

This special issue of Kerala Economy, co-edited with Dr. P V Unnikrishnan, intends to present succinctly the outcome of the international consultation while full deliberation will be brought out as a book. The issue is broadly organised into three parts. It opens with the addresses that set the context for the new vision for Kerala. The second part articulates the key pillars of the knowledge economy and the reflections from scholars of eminence followed by the last part highlights the way forward.  

It is our hope that the readers will find it useful.