**3. Globalization, knowledge production, knowledge-based economy**

Globalization has influenced the way we do business especially as a driving force of the knowledge-based economies around the world. Knowledge has become a

#### *Higher Education Institutions (HEIs) in Africa Embracing the "New Normal" for Knowledge… DOI: http://dx.doi.org/10.5772/intechopen.101063*

critical resource that is needed to operate in the globalized knowledge economy. The focus is now more on knowledge as opposed to increased emphasis on the accumulation of tangible resources. As such, knowledge is looked at as a commodity or an asset and it is also seen as a catalyst in modern economics ([3], p. 291). Nevertheless, the "use of knowledge is the main driver of economic development and a powerful engine of production" ([4], p. 8). Currently, efforts to accumulate more tangible resources (i.e. building structures, computers, photocopies) without adequate or sufficient knowledge on how to use the resources seems not to make sense anymore. This does not mean that tangible resources are no longer important. However, the value of tangible resources in diminished without the knowledge on how to use them innovatively. Therefore, such people who are capable of generating knowledge or ideas leading to solutions that address current global challenges are on an increasing demand. They are on demand because they contribute both directly and indirectly towards the knowledge production. Knowledge production refers to ability to generate innovative knowledge/ideas and solutions to address real-life situations or challenges. Indeed, innovation is a product of knowledge production. HEIs should play a significant role in knowledge production and likewise incredibly contribute to innovations. In theory, one best way of becoming innovative is by engaging and interacting with innovations [5]. Therefore, HEIs must create conducive environment for students that actually represent the world of innovation through scientific research, technology and knowledge production. Indeed, developed and developing economies of the world increasingly lay much more emphasis on knowledge production in terms of generating innovative ideas and patent creation to optimize their competitive advantage in the globalized market share. "Globalization has also been an important factor in opening new markets and internationalization of trade in knowledge sectors that have exposed the world economies to international competition" ([4], p. 7). This has also stimulated "the creation of global labor markets of highly skilled workers, investment and access to new technologies, information, idea and knowledge flows from around the world that have accelerated the transition to a knowledge-based economy" [4]. Knowledge-based economy refers to economies focusing on "increased specialization, research, innovation, and learning driven by new information technologies" ([6], p. 10). The new information technologies are so important drivers of the knowledge-based economy that if Africa is to remain competitive, it needs to expand its networks for improved information sharing [3]. Most importantly, the knowledge-based economy emphasizes the use of 'knowledge' as an asset to leverage the growth and development of world economies. As a matter of fact, some countries have been so good at flexibly creating and producing new knowledge quickly to address current local, regional, and global problems facing society. These countries have been able to obtain significant economic gains through such innovation and knowledge production. Besides, these countries have continued to prosper in spite of the impact of globalization. However, the majority of third world countries have been unable to make the necessary adjustments in terms of globalization responsive curricula especially for higher education and the quality of their education systems is generally low. Consequently, they have tended to stagnate in their economic, social and technological developments. Yet if Africa to remain relevant and competitive in today's knowledge-based economy, the continent has to revamp her HEIs as centers of excellence for knowledge production.
