Knowledge is economic power

Riad Mannan looks at the role of the construction industry in the development of a knowledge economy.

The term ‘knowledge-based economy' has been used to describe a movement towards an economy not necessarily based on products or services, but one based on the use of knowledge.

For products and services, instead read ‘ideas' and ‘thinking'. In the knowledge-based economy, knowledge itself is the main driver of economic growth. Following the industrial age and the information age, now comes the knowledge age.

Increased competition in a globalised world is forcing governments and companies to look at how best to increase productivity and improve performance. I believe the use of knowledge will be key.

As regional governments look to achieve greater economic growth, through a drive towards the knowledge economy, companies here have to consider how best to respond to the challenge. Governments and corporations cannot drive this themselves - it is the individuals inside these organisations who will be at the forefront.

One of the biggest sectors in Middle East economies is construction. Some, such as Saudi Arabia, will actually see a growing proportion of their GDP coming from construction in the near future.

So what role can construction companies play in developing a knowledge-based economy in the Middle East and more importantly, why should they bother?

The truth is of course, that they are already in one. Knowledge has always driven construction, enabling people to build extraordinary structures, from the pyramids to skyscrapers.

The question for the 21st century construction company is how can they differentiate themselves from their competition and by doing so, drive up their performance and profits? A key part of the answer is knowledge: the knowledge - or lack of - contained within their companies will set them apart.

Individual knowledge is good, if not critical, for a company's success. The skills and expertise individuals have differentiate that company from another. Individuals who develop new ideas, technologies and processes will inevitably be employed by companies at the forefront of the knowledge-based economy.

Employees who have a strength and depth of knowledge will drive the company and indeed, the industry, forward. Best-practice employers, however, know that to get the best out of their employees, they have to invest in training and education.

Continuing professional development has always been a way towards excellence for construction professionals. Qualifications from internationally recognised industry bodies not only benefit the individuals, but also their organisation. They are an essential part of any world-class operation and companies in the Middle East are not be immune from this.

However, once knowledge is gained, it should not be lost. Developing a culture of knowledge exchange will also be a key part of the knowledge-based economy. Innovative ideas will find their way into new designs, materials and construction methods. As a result, companies will win bigger, better and higher-profile projects, leading to greater profits and increased market share. Knowledge becomes the main driver of productivity and growth.

As countries in the Middle East strive towards the knowledge economy, it is important to remember that the construction industry has a huge role to play. Leading companies within the industry will invest in individual training and education to ensure their employees have best-practice knowledge.

Certified training courses, like those being hosted for the first time in the Middle East at The Big 5 show in November, will go a long way to providing knowledge to construction professionals. Leading companies who want to be part of the knowledge-based economy should encourage their employees to take part in relevant courses. They will then be fully prepared and trained to contribute to their company's drive forward.

Riad Mannan is conference director of The Big 5.