Transformation from Knowledge-Based to Creative Economy:

Lessons for Nigeria

Abstract

The global financial and economic crisis of 2008 led to a sharp decline in global demand and international trade. However, global exports of creative goods and services continued to increase reaching 592 billion dollars in 2008. This was more than double the 2002 value which indicates an annual growth of 14 percent over six consecutive years. This trend continued up to 2015. This is an indication that the creative industries hold great potential for developing countries that seek to diversify their economies. The knowledge-based economy emphasizes a system of consumption and production that is based on intellectual capital. It recognizes the role of knowledge and technology in economic growth. Creativity in itself fosters income generation, job creation and export earnings while promoting social inclusion, cultural diversity and human capital development among others. This paper therefore identifies key indices that must be within the appropriate benchmarks, for transition from knowledge-based to a creative economy to take place. These have generated increasing competitive advantage for emerging and developed economies. It proceeds to identify conceptual models of creativity and draws lessons from the economic transformation experience of some emerging and developed economies for 
Nigeria. Appropriate indicators that include: Knowledge Economy Index (KEI, KEIInnovation, KEI-Information Communication Technology), Global Competitiveness Ranking, Human Development Index, Literacy Rate and Research/Development expenditure as 
percentage of Gross Domestic Product were therefore considered and assessed. The paper recommends that realizing the gains from transformation from a knowledge-based to a creative economy will no doubt involve the government formulating the right public policy mix and strategic choices for harnessing the socio-economic potentials.