Proceedings of the 12th European Conference on Knowledge ...

Behiye Çavuşoğlu and Mustafa Sagsan
investments in ICT would play a crucial role to improve <strong>the</strong> TRNC‘s per capita income. One <strong>of</strong> <strong>the</strong>
most important factors which effects GDP per capita is domestic investment to GDP ratio as well as
knowledge variables has a positive impact besides telephone main line on GDP per capita. In this
case, TRNC policy makers should consider that <strong>the</strong> investments which creates directly positive effect
on GDP per capita direct to <strong>the</strong> knowledge economy variables in order to make NKMS.
The result from <strong>the</strong> analysis suggests that TRNC’s economy is not a knowledge economy yet, but
main knowledge variables have a positive and significant effect on GDP per capita <strong>of</strong> <strong>the</strong> country. By
this point <strong>of</strong> view, in order to make NKMS for <strong>the</strong> country, <strong>the</strong> decision makers need to improve
educational capacity, information literacy, knowledge assets, technological infrastructure, innovative
and creative skills for <strong>the</strong> pr<strong>of</strong>essionals. Fur<strong>the</strong>rmore, <strong>the</strong> capacity <strong>of</strong> intellectual usage and economic
incentive regime, those also indicate for being information and knowledge society, are important
factors to make NKMS for <strong>the</strong> TRNC.
4. Conclusion and directions
In order to make NKMS for <strong>the</strong> TRNC, which indicates <strong>the</strong> characteristic <strong>of</strong> small island economy, <strong>the</strong>
model helps us to focus on <strong>the</strong> specific variables. It is obviously seem that, <strong>the</strong> investments play
important role for <strong>the</strong> GDP per capita. If <strong>the</strong>se investment can directed on knowledge variables by <strong>the</strong>
policy makers, economic growth <strong>of</strong> <strong>the</strong> country will be accelerated by considering NKMS. Although <strong>the</strong>
country has sufficient capacity on knowledge economy, for example, 100 % literacy rate, 81% higher
education enrolment ratio and $16, 158 GDP per capita, <strong>the</strong>re is no specific NKMS within <strong>the</strong> country.
The lack <strong>of</strong> awareness about making long term objective policy on information and knowledge, <strong>the</strong>
lack <strong>of</strong> pr<strong>of</strong>essional employees on knowledge management, inadequate domestic manufacturing
industry and <strong>the</strong> existence <strong>of</strong> isolations are some <strong>of</strong> <strong>the</strong> barriers that <strong>the</strong> TRNC should overcome in
order to adopt knowledge economy. More specifically, TRNC has to:
follow efficient training policies to protect knowledge divide and intellectual capital
make stable macroeconomic policies in particularly on investments by considering <strong>the</strong> knowledge
assets such as patents, trademarks, copyrights, etc.
follow low-cost leadership strategy in order to produce technological hardware and s<strong>of</strong>tware
support openness to trade and foreign direct investments
create awareness on <strong>the</strong> knowledge based economy indicators at <strong>the</strong> governmental level by
using e-government and e-governance index
ga<strong>the</strong>r more data based on <strong>the</strong> knowledge economy indicator from <strong>the</strong> society and related
organizations periodically
work collaboratively benefiting from <strong>the</strong> best practices <strong>of</strong> countries which have small island
economy
establish a ministry as soon as possible, related to information and knowledge works in <strong>the</strong>
country in cooperating with <strong>the</strong> o<strong>the</strong>r ministries
has to improve e-government efforts in order to get positive feedback from <strong>the</strong> citizens based on
<strong>the</strong> knowledge economy variables
focus on <strong>the</strong> tacit dimension <strong>of</strong> knowledge; because it requires lateral hierarchy, which allows
public organizations to create more knowledge assets within <strong>the</strong> socialization environment based
on <strong>the</strong> NKMS.
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