EGYPT’S RANKING ON THE KNOWLEDGE ECONOMY INDEX: BARRIERS TO TRANSFORMATION IN REVOLUTIONARY TIMES

This article seeks to bridge the gap in literature between Knowledge Management as a prerequisite to innovation and transformation of developing countries such as Egypt. Several articles and research studies have been conducted on this relationship, yet none has been extended to North Africa. Egypt is currently walking a thin line between revolutionary change that can aid the country in regaining its former glory and long lasting chaos. The authors have conducted interviews with 50 junior and senior level managers in the ICT and FMCG sector in Egypt according to a structured questionnaire that seeks to identify Egypt's position on Knowledge Management and innovation. The results of the individual companies provide us with an aggregate picture of the economy, enabling us to assemble the first SWOT analysis for Egypt's current position. The Egyptian economy possesses high potential given the existence of the enabling tools that allow Knowledge Transfer. Yet, the enduring weaknesses of a deeply rooted culture that defies Knowledge Transfer, corruption and an outdated educational system pose a threat to the economy's ability to innovate and advance. These findings justify the World Bank's ranking of Egypt on both the Knowledge Index (KI) and Knowledge Economy Index (KEI) for 2009. The value of this research resides in compiling a SWOT analysis that would be of value for practitioners and policy makers in Egypt and allow them to fathom the justification behind the World Bank's ranking of Egypt. This information should formulate a solid base for Egypt's transformation path.