The Impact of Transitioning Towards Smart Economies in the Geometry of the New Global Order

Document Type : Original Article

Authors

1 Assistant Professor, Department of Economics and Islamic Banking, Faculty of Economics, Kharazmi University. Tehran Iran.

2 M.A in Economics, Faculty of Humanities, Islamic Azad University, Firuzkoh Branch, Tehran, Iran.

Abstract

A review of the historical course of global economic development shows that the rise of knowledge-based economies first occurred in the mid twentieth century. During this era, we first observed the development of information and communication technologies, and subsequently the rise of the internet economy, the electronic economy and digital economy. Furthermore, with the advancement of this age we observe the formation of a new sector termed the ‘smart economy’. The rise of this sector has in turn gave rise to a new order within the world economy, whereby the countries with the strongest knowledge-based economic sectors have benefited greatly in terms of increases in influence and wealth. Accordingly, from the middle of the first decade of the 21st century, ‘smart economy’ has become a subject of discussion within the theoretical literature of economic growth and development. By this light, the present article seeks to design a macro-evolutionary model for the transition from agricultural and industrial economy to a smart economy.
In order to achieve the main goals of this article, we started by collecting data through semi-structured interviews, observation and documentation review. Next, we analyzed the data through three-stage coding based on grounded theory. The results obtained indicate that we are observing a transition from large multinational companies to smaller economies. This transition has in turn leveled the playing field, allowing smaller actors to play an important role in creating the world of tomorrow. In this transition, electronic chips, smart investment, and high-quality human capital will be the drivers of this transition. Lastly, the paper ends by presenting the most important requirement for devising a strategy for macro-transition towards a smart economy based on the results of the grounded theory.

Keywords

Defense Economics and Sustainable Development
Volume 7, Issue 26
March 2023
Pages 103-117

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