The global economy’s landscape needs a new economic model where knowledge is used as a valuable resource to stimulate innovation, creativity, and entrepreneurship in order to increase productivity and competitiveness for sustainable growth as a premise for social welfare. The policymakers have to design the new public policy for productivity and competitiveness considering the Knowledge Economy frontier and to establish the institutional capacity to manage the knowledge perspective of development. The Knowledge Economy Pyramid model is a catalyst of knowledge ecosystems from education, research, technology, business, innovation, government and local communities, capable to create a collaborative environment with synergy effect: transforming knowledge value in increasing productivity and competitiveness.
The Knowledge Economy Pyramid is a robust framework based on the four pillars of Knowledge Economy with three effective and powerful structures build upon: Knowledge Triangle, Triple Helix, and Smart Specialization. The main axis which unifies these structures is education-business and all the other stakeholders from research, science, technology, government, administration, clusters, and community are equal contributors to process the knowledge along the central shaft.
Considering the Knowledge Economy Pyramid model, this research work is defining the coordinates of the public policy for productivity and competitiveness which will be implemented by the institutional capacity – Productivity and Competitiveness Center. This institution is a concrete and accurate representation of the Knowledge Economy Pyramid model with the scope to implement the principles of Knowledge Economy to increase productivity and competitiveness as outputs of the process. Moreover, the capacity building will provide the premises to conclude the new public policy into outcomes: standard of living, well-being, quality of life, and green growth.
Knowledge Economy Pyramid provides a toolkit for policy/decision- makers to take action in order to improve the activity at any stage of development or maturity for an economy or institution related with productivity and competitiveness and it is able to measure the gap between actual development level and the knowledge edge.
From an economic perspective, to analyze the concepts of productivity and competitiveness in Knowledge Economy, this study is a very complex work where the tangible is mixed with the intangible, human with technology, economic growth with people prosperity. This study is a “one-stop shop” for all the policy/decision-makers, leaders, representatives, officials, professors, researchers, specialists and practitioners, all engaged in the work to transform the traditional economic model into a new one, according to the Knowledge Economy Pyramid framework.