Business, Management and Economics Engineering

Abstract

This study aims to identify The Role of Digital transformation in the Transition to the Knowledge Economy in Iraq, Egypt and South Korea, the study relies on the inductive approach, which is based on collecting and analyzing data and information, by forming the theoretical framework for the study and collecting related scientific material from primary and secondary sources. The study also used the standard method to reach the results of the study, by following the ARDEL model to test the relationship between variables, as well as the error correction model was used to find out the type of relationship between variables in the long and short term using the E-Views program. Study finding concluded that Work on the use of modern methods in the field of digital transformation and the use of modern technologies in the field of transition to the knowledge economy in Iraq , also Paying attention to studying the experiences that countries have undertaken in the field of digital transformation and how to achieve a knowledge economy, especially the experiences of Egypt and South Korea, and to benefit from the methods they used to overcome the challenges and difficulties they faced in this field.

Full text

Business, Management and Economics Engineering
ISSN: 2669-2481 / eISSN: 2669-249X
2023 Volume 21 Issue 01
528
Copyright © 2023 The Author(s). Published by Vilnius Gediminas Technical University
This is an Open Access article distributed unde r the terms of the Creative Commons Attribution Lice nse (https://creativecommons.
org/licenses/by/4.0/), which perm its unrestricted use, distribution, and reproduction in any medium, provided the original author and
source are credited.
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE
KNOWLEDGE ECONOMY IN IRAQ, EGYPT AND SOUTH KOREA
Dr. Yaseen Othman Abdullah
College of Administration and Economics - Salahaddin University - Erbil
Yaseen.abdulaah@su.edu.krd
Abstract :
This study aims to identify The Role of Digital transformation in the Transition to the
Knowledge Economy in Iraq, Egypt and South Korea, the study relies on the inductive
approach, which is based on collecting and analyzing data and information, by forming the
theoretical framework for the study and collecting related scientific material from primary and
secondary sources. The study also used the standard method to reach the results of the study,
by following the ARDEL model to test the relationship between variables, as well as the error
correction model was used to find out the type of relationship between variables in the long
and short term using the E-Views program. Study finding concluded that Work on the use of
modern methods in the field of digital transformation and the use of modern technologies in
the field of transition to the knowledge economy in Iraq , also Paying attention to studying the
experiences that countries have undertaken in the field of digital transformation and how to
achieve a knowledge economy, especially the experiences of Egypt and South Korea, and to
benefit from the methods they used to overcome the challenges and difficulties they faced in
this field.
Keywords: Digital transformation - Transition - Knowledge Economy – Iraq - Egypt - South
Korea
1. Introduction
Economic activity is undergoing profound change, As the economy of the industrial age
recedes in favor of the economy of the age of knowledge and the Internet, just as the shift from
the agricultural era to the industrial age brought about fundamental changes in the methods of
organizing and managing economic activity. The shift to the knowledge economy is capable of
changing and achieving new events that affect the economic interests of countries that have to
absorb and invest them (Udaltsova, 2020).
Where the economies of the industrialized countries have witnessed structural
transformations since the seventies of the twentieth century, which helped them to move from
the ranks of industrial economies based on capital and human resources to economies based on
the exploitation of knowledge, and since then knowledge and innovations have become one of
the most important factors of production and Wealth development, which prompted the
governments of these countries to formulate the features of the new economy, and this trend
reinforced the outstanding developmental achievements of developing countries that used this
technology to establish a prominent position in the world, and these achievements showed that

529
529 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
the countries that were able to invest in this technology enjoy wider opportunities to overcome
obstacles structure, and a greater ability to achieve its economic and social objectives. As a
result, the conviction became entrenched that social and economic development in the twenty-
first century could not be achieved in isolation from the transition to the information society
(Azarenko, et al 2018).
Most developing countries, sought to develop ambitious strategies for the development of
digital transformation within the framework of the comprehensive development strategy. And
foreign affairs in this field, and created a suitable environment to absorb these investments to
liberalize markets and develop targeted policies, and remove all obstacles in front of
investments. Thus, all these elements together led to the growth of digital transformation,
which in turn creates an encouraging work environment and a solid economy, as the world
moves towards a knowledge economy in which the rate of cognitive value-added increases
significantly, and in which transformation has become knowledgeable goods or commodities.
Fundamentally in the growth of the knowledge economy (Attaran, et al 2020).
The research problem lies in the role of digital transformation in the transition towards a
knowledge economy in Iraq, where the world is experiencing a real revolution in the field of
digital transformation, and no country can no longer aspire to achievement, development, and
development without this sector being one of its main pillars, as digital transformation is one
of The most important factors that enable economic and social development in Iraq, through
new technologies that work to develop the knowledge society, which can accelerate the
development process, create job opportunities, and help society shift to a knowledge economy.
Where the economic system witnessed rapid developments, the most prominent of which
were the developments in the technological field, especially those related to information
processing and dissemination or what is known as information and communication technology,
where the problem of researchers and those seeking knowledge was summed up in the
difficulty of reaching the required information, either because of its scarcity or because of the
difficulty Access to it and its high cost, and with the advent of digital transformation and its
rapid spread, the problem has become centered in choosing the information to be obtained
amidst a large number of references and data that are permanently available, especially in
information networks. With the advent of the twenty-first century, the global economy is
moving more and more towards the knowledge economy, which relies mainly on information
and communication technology and digital transformation. Here we must stand on what
opportunities the knowledge economy will bring? What are the challenges you will face in
Iraq?
The world is also witnessing a steady increase in the role of knowledge and information in
the economy: knowledge has become the engine of production and economic growth, and the
principle of focusing on digital transformation as one of the basic factors in the economy has
become a matter of course. New terms began to multiply in this field, such as 'digital
transformation', 'knowledge economy', 'education economy', 'third wave' and others. The low
status of Iraq's knowledge on the global map and its occupation of a late position and the
existence of many challenges that impede the building of the Iraqi knowledge economy in line
with global economic development, especially in the field of knowledge and technology
transfer and the development of communication systems and increase the number of its users

530
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
Hence the problem of the study lies in how to adapt the digital transformation in the transition
to the knowledge economy in Iraq and improve Iraq's knowledge position on the global map.
And how Iraq can benefit from the experiences of the countries under study and the strategies
followed in each of them in order to move to a knowledge-based economy and to know the
weaknesses and strengths of each international experience and work to transfer them in line
with the available capabilities and serve the goals and challenges facing Iraq at the local,
regional and global levels. In order to try to make up for what it missed and to appear on the
global map as before, as the reports of the knowledge economy do not include the State of Iraq,
despite the inclusion of some of them to approximately 188 countries, and with the help of the
comparison countries, we will discuss how Iraq benefits from the experiences of one of the
Arab countries, which is Egypt, and one of the countries The leading Asian country, which is
South Korea. It should also be noted that the indicators of the knowledge economy are divided
into what was before 2017 and beyond, as before that there were only 4 indicators identified
by the World Bank, which are (Global Knowledge Index Report, 2012):
o Information and communication technology.
o education.
o innovation.
o Economic incentive and institutional system.
However, after the previous date, a new report on the knowledge economy was issued by the
Mohammed bin Rashid Al Maktoum Foundation in the UAE, and a new number of sub-
indicators were identified, and they can be summarized in the following figure (1):
Source: Global Knowledge Index Report, 2017
figure (1) : Knowledge economy indicators
Global
Knowledge
Index
enabling data
Information and
communication
technology
Research,
development
and innovation
Higher Education
Technical
education and
vocational
training
University
education
Economy

531
531 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
The previous figure shows the subcomponents of the Global Knowledge Index in its first
edition in 2017, as it is added to the aforementioned components of the knowledge economy
in that it separated the unified education index in the knowledge economy index into three
indicators, namely, pre-university education, technical education and vocational training, and
education The indicators of research, development and innovation, and the index of
communication and information technology were maintained, and the economy index, reality
analysis, and sub-indicators of the economy of the country under study were added, and the
institutional framework was measured by enabling data.
2. Research Methodology :
The study relies on the inductive approach, which is based on collecting and analyzing
data and information, by forming the theoretical framework for the study and collecting
related scientific material from primary and secondary sources. The study also used the
standard method to reach the results of the study, by following the ARDEL model to test
the relationship between variables, as well as the error correction model was used to find
out the type of relationship between variables in the long and short term using the E-Views
program.
2.1.Research problem
From the previous presentation, the study questions can be identified as follows:
 What is the role of digital transformation in the transition to a knowledge economy in
Iraq, Egypt and South Korea?
 What are the lessons that Iraq can benefit from the experiences of Egypt and South Korea
in benefiting from digital transformation in achieving the knowledge economy?
2.2.Research Objectives
 Determine the role of digital transformation in the transition to a knowledge economy
in Iraq, Egypt and South Korea?
 Determine the lessons that Iraq can benefit from the experiences of Egypt and South
Korea in benefiting from digital transformation in achieving the knowledge economy?
2.3.Research Importance
The importance of this study lies in its discussion of the various dimensions that affect the
development of digital transformation in Iraq and enhance its contribution to the growth of a
knowledge-based economy. Iraq, in order to consolidate the status of Iraq and place it on the
global knowledge map
2.4.Research Hypotheses
Ho1: The statistically significant positive impact of the level of (digital transformation) on the
level of (knowledge economy) in south Korea
Ho2: The statistically significant positive impact of the level of (digital transformation) on the
level of (knowledge economy) in Egypt
3. Literature Review
3.1.Concept of digital transformation
According to Pilík, et al (2017) Digital transformation is defined as making changes in
how individuals perceive, think, and act, and seek to improve the work environment by

532
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
focusing on the use of information and communication technology, in addition to changing
organizational assumptions about jobs, so that they include organizational philosophy and
values, organizational structures, and organizational arrangements that shape the behavior of
individuals. Consistent with the nature of information and communication technology.
Due to Kochetkov, (2020). Digital transformation is also defined as “taking advantage of
the information and communication revolution to provide services and products in an
innovative way that generates a distinctive experience at all levels.” of the value of its product.
As Morkovkin, et al (2020) mention that Digital transformation is also defined as “the process
of converting printed materials, or stored on microfilm or microfiche, and materials in analog
form, such as audio tapes, video tapes through scanning, and / or re-entry into digital form
materials, which is the form in which The computer can deal with it by organizing it into
separate units of data called 'bytes', and storing them on internal storage media such as hard
disks, and / or external ones such as laser discs.
3.2.Digital transformation goals :
The digital transformation is one of the features of today's civilization, and it is the basic
step that must be taken in order to deal with the electronic computer with the elements of entry
and exit, and the digital transformation represents the essence of the basic function performed
by the input units. From this we conclude that digital transformation aims to (Geyda, et al
2022):
o Take advantage of information and communication technology.
o Improving and facilitating the provision of services and products to citizens.
o Use the innovation method to achieve the best results.
3.3.Requirements for achieving digital transformation (Yankovskaya, et al 2021):
o In the multiplicity of concepts of digital transformation, we find that digital
transformation depends on knowledge and the integration of information and
communication technology in all fields. Therefore, the requirements of digital
transformation require the following:
o Determining the vision precisely, i.e. defining the shape and goal to be transformed and
reaching it in the future.
o Continuous review of the digital transformation plan and comparing the achieved with
the target.
o The continued vitality of leadership and administrative support for digital
transformation efforts, through focusing leaders and all officials on administrative
practices related to technology, providing human, financial and material resources, and
the necessary legislation.
o Developing existing organizational structures by moving away from complex
structures, striving to find flexible organizational structures, and focusing on effective
work teams.
o Building a digital transformation strategy in the light of analyzing the market and its
needs, analyzing strengths and weaknesses, and surveying opportunities and threats in
the external environment.

533
533 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
o Focusing on the technological dimension: by renewing the basic infrastructure of
information technology in terms of providing modern devices and various programs.
o Developing human resources: by observing the recruitment and appointment process,
and developing the skills and capabilities of all young people through training and self-
development programmers.
o Changing the prevailing organizational culture: by spreading the culture of using
technology and the Internet, and this requires changing and managing the culture as a
competitive advantage.
o Accordingly, the success of the digital transformation process does not depend on the
effectiveness of the transformation process only, but rather it requires the capabilities,
skills and personal characteristics of leaders and all members of society that reflect the
extent of their faith and commitment to the digital transformation process and its stages.
Therefore, strategies should be developed in addition to building the capacities of
leaders and individuals. With the aim of supporting and endorsing change and in the
light of the concepts of integrating information and communication technology in all
areas and activities of society.
Also There are many definitions that dealt with the knowledge economy, the most important
of which is as Popkova, (2019) mention:
Definition of the World Bank WB: The Bank defined the knowledge economy as the economy
in which knowledge is the main engine of economic growth.
Definition of the Organization for Economic Cooperation and Development (OECD): Where I
defined the knowledge economy as the economy in which the processes of knowledge
production, distribution and use are among the most important engines of economic growth,
wealth creation and work in all sectors.
Definition of the United Nations Development Program 2003: Where he indicated that the
knowledge economy is the dissemination, production and employment of knowledge
sufficiently in all areas of economic, social, civil, political and private life in order to improve
the human condition, i.e. the establishment of human development, and it requires building
possible human capacities and distributing them optimally.
Definition of the United Nations Economic and Social Commission for Western Asia: Where
she defined the knowledge economy as “the economy in which the sectors that use and produce
information play the main role in the economy in contrast to the traditional sectors, in which
the processes of using raw materials and energy form the main role in generating output, such
as agriculture and industry.” According to this expression, the economy is considered
knowledge when the numbers exceed Employment in information economic sectors
Employment in other economic sectors.
The technological revolution has led to maximizing the role of companies working in the field
of information technology globally, and after the emergence of the knowledge economy, which
has achieved superiority over the traditional economy, in order to achieve the competitive
advantage of these establishments. The knowledge economy focuses on information that
provides the following (Ragulina, 2019):
o A stream of data that flows easily and quickly between all branches of the economy.

534
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
o Converting data into information and then converting information into knowledge for
decision makers.
o Converting previous operations by the decision maker into profit.
o A legal and legislative environment and an appropriate general climate that guarantees
complete freedom and transparency in the circulation of information and the removal
of obstacles.
o A strong communications environment that allows for fast and easy data flow between
the various units of the economy.
o Full openness to tools for dealing with information (Internet, electronic business,
various information systems).
3.4.International indicators for the countries of South Korea, Egypt and Iraq
3.4.1. Indicators of digital transformation in South Korea:
Here we will discuss the current situation of the system of scientific research and technological
development in South Korea to see the improvement of the mechanism of economic indicators,
and this situation can be inferred by analyzing the most important indicators of that system
contained in the following table during the period under study as follows:
Table No. (1) - Indicators of the scientific research and technological development system in
South Korea during the period 2000-2020
Indicator
s
200
0
200
2
2004 2006 2008 2010 2012 2014 2016 2018 2020
D&R
spending
as a share
of GDP
2.2 2.3 2.5 2.8 3.1 3.5 4 4.3 3.99 4.52 4.81
Number
of
researche
rs (per
million
populatio
n(
234
5
303
4
3301 4175 4868 5380 6361 6899 7086 7980 8714
High-
technolo
gy
exports
% of
manufact
ured
goods
exports
35 31.5
33 32 28 29 26 27 27 36 36
Advance
d
54 47 76 93 100 132 130 149 135 193 164

535
535 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
technolo
gy
exports
(in
current
US
dollars)
billion $
Patents
A - for
residents
728
31
765
70
1052
50
1254
76
1271
14
1318
05
1481
36
1640
73
1634
24
1625
61
1804
77
B - for
non-
residents
291
79
295
66
3486
5
4071
3
4351
8
3829
6
4077
9
4621
9
4540
6
4743
1
4628
2
Scientific
and
technical
journal
articles
159
05
200
92
2766
2
3686
0
4409
4
5058
9
5626
8
6070
5
6273
5
6637
6
----
Source / by the researcher based on the World Bank database for multiple years. Available at
the link https://data.albankaldawli.org/indicator ON 8 - 1-2023
Note: (---) indicates that the data is not available
From the data of the previous table, it is clear that:
o Looking at the indicator of spending on scientific research and technological
development as a percentage of the gross domestic product, we find that this
percentage is constantly increasing from 2.2% of the gross domestic product in
2000 until it reached 4.3% in 2014, which reflects the extent of South Korea's
interest in spending on research and development. The gross domestic product is
constantly increasing, as it was $ 562 billion in 2000, and it continued to increase
continuously until it reached $ 1.41 trillion in 2014. However, the proportion of
spending on research and development in South Korea increased and reached
4.81 in 2020.
o As for human resources, the data indicates that the number of researchers per
million of the population has increased from 2,345 researchers in 2000, to 4,175
researchers in 2006, and then to 6,899 researchers in 2014. Researchers and
providing an appropriate environment for them, providing appropriate
technology, and appropriate support, and the number of researchers reached
8,714 researchers in 2020.
o As for high-tech exports, the total exports of goods made in South Korea during
the study period from 2000 to 2020 amounted to about 17% on average, and this
is a very high percentage when compared to Egypt, which is less than 1% during
the same period.

536
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
o Looking at advanced technology exports (at current prices in US dollars) billion
$ during the same period, we find that during the year 2000 it was $ 54 billion,
then it increased to $ 93 billion in 2006 and reached $ 118 billion in 2016, and
this indicates that the share of high-tech exports In Korea, it is increasing at great
rates during the study period, which reflects the technological development of
Korea, and the increase in global demand for its products.
o Looking at the system of scientific research and technological development in
South Korea, we find that with regard to the total patents granted to residents, it
increased from 72,831 patents in 2000 to about 125,476 patents in 2006, and then
to 163,424 in 2016.
o As for non-residents, it reached 29,179 patents in 2000, then to 40,713 patents in
2006, reaching 45,406 patents in 2016, and the large difference between patents
for residents and non-residents is clear in favor of residents, and this reflects the
outputs of Korean education and its policies that are in favor of technological
development And provide outputs that meet market requirements, and reached
46,282 patents in 2020.
o Through the previous presentation of the most important indicators throughout
the study period, we find that South Korea has paid great attention to the
development of its technological infrastructure, and that it has achieved great
successes in this field, especially in high-tech exports, and the return from them,
providing human resources capable of achieving the hoped-for Korean goals,
And it has the ability to compete in the international markets.
o That is, the policies implemented by South Korea, especially those related to
human capital and research and development, are policies that have succeeded
to a large extent.
3.4.2. Indicators of digital transformation in Egypt:
Here, the current situation of the system of scientific research and technological
development in Egypt will be presented to see the improvement of the economic indicators
mechanism, and this situation can be inferred by analyzing the most important indicators of
that system contained in the following table during the period under study as follows:
Table No. (2) - Indicators of the scientific research and technological development system in
Egypt during the period 2000-2020
Indicators
200
0
200
2
200
4
200
6
200
8
201
0
201
2
201
4
2016 2018 202
0
D&R
spending as
a share of
GDP
0.19 ---- 0.27 0.26 0.27 0.43 0.51 0.64 0.71 0.72 0.96
Number of
researchers
(per million
population(
---- ---- ---- 631 439 492 517 675 689 687 838

537
537 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
High-
technology
exports % of
manufacture
d goods
exports
---- ---- ---- ---- 1 1 1 1 1 1 3
Advanced
technology
exports (in
current US
dollars)
billion $
---- ---- ---- ---- 98.8 105 79 168 56 125 343
Patents
A - for
residents
534 627 382 488 481 605 683 752 920 997 978
B - for non-
residents
108
1
788 312 999 164
9
162
5
152
8
138
4
1258 1258 122
9
Scientific
and
technical
journal
articles
270
5
306
0
360
1
400
5
496
1
660
8
834
5
917
2
1110
9
1332
7
----
Source / by the researcher based on the World Bank database for multiple years. Available at
the link https://data.albankaldawli.org/indicator ON 8 - 1-2023
Note: (---) indicates that the data is not available
From the data of the previous table, it is clear that:
o Looking at the indicator of spending on scientific research and technological
development as a percentage of GDP, we find that this percentage, although it
is very small, is constantly increasing from 0.19 of GDP in 2000 until it reached
about 1% in 2020.
o As for human resources, the data indicates that the number of researchers per
million of the population has increased from 641 researchers in 2000 to 838
researchers in 2020.
o With regard to high-tech exports, the total exports of manufactured goods in
Egypt during the study period from 2000 to 2020 amounted to 1% in most years
of the study, but during the year 2020 the percentage increased and reached 3%.
o Looking at the exports of advanced technology (at current prices in US dollars)
billion $ during the same period, we find that during the year 2000 it was $ 99
million, then it increased to $ 168 million in 2016 and reached $ 343 million in
2020, and this indicates that the share of high-tech exports In Egypt, it is

538
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
constantly increasing, despite the decline in Egypt's share and contribution to
the global market.
o Looking at the system of scientific research and technological development in
Egypt, we find that with regard to the total patents granted to residents, it
increased from 534 patents in 2000 to about 605 patents in 2010, and then to
978 in 2020.
o As for non-residents, it reached 1081 patents in 2000, then 1625 patents in 2010,
then decreased to 1229 patents in 2020.
o Through the previous presentation of the most important indicators throughout
the study period, we find that Egypt has made many efforts at all levels in order
to achieve an improvement in the indicators of technology, digital
transformation and the knowledge economy.
3.4.3. Indicators of digital transformation in Iraq:
Here, the current situation of the system of scientific research and technological
development in Iraq will be presented to see the improvement of the economic
indicators mechanism, and this situation can be inferred by analyzing the most
important indicators of that system contained in the following table during the period
under study as follows:
Table No. (3) - Indicators of the scientific research and technological development
system in Iraq during the period 2000-2020
Indicators
200
0
200
2
200
4
200
6
200
8
201
0
201
2
201
4
201
6
201
8
202
0
D&R
spending as
a share of
GDP
---- ---- ---- ---- 0.03 0.04 0.04 0.04 0.04 0.04 0.04
Number of
researchers
(per million
population(
---- ---- ---- ---- 391 432 441 70 65 111 141
High-
technology
exports % of
manufacture
d goods
exports
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Advanced
technology
exports (in
current US
dollars)
billion
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Patents ---- ---- ---- ---- ---- ---- ---- ---- 335 653 635

539
539 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
A - for
residents
B - for non-
residents
---- ---- ---- ---- ---- ---- ---- ---- 102 77 98
Scientific
and technical
journal
articles
92 106 93 248 310 554 826 866 123
6
607
3
----
Source / by the researcher based on the World Bank database for multiple years.
Available at the link https://data.albankaldawli.org/indicator ON 8 - 1-2023
Note: (---) indicates that the data is not available
o Looking at the indicator of spending on scientific research and technological
development as a percentage of the gross domestic product, we notice a low
percentage during the study period compared to the countries under study.
o As for human resources, the data indicates that the number of researchers per
million of the population has decreased from 391 researchers in 2008 to 141
researchers in 2020.
o With regard to scientific and technical articles, we find a significant increase in
the numbers of these journals from 92 articles in 2000 to 826 articles in 2010.
It is also noticeable that there is a significant increase, as the number of articles
increased from 1236 in 2016 to 6073 scientific articles in 2018.
o That is, through the previous presentation of the most important indicators over
the course of the study period, we find that Iraq should study the situation of the
countries under study and try to benefit from the experiences of those countries.
3.4.4. South Korea indictors in the global map of the knowledge economy:
The knowledge economy indicator and its sub-indicators can be clarified through the following
table:
Table No. (4) Indicator of the knowledge economy of the State of South Korea during the
period from 1995 to 2012.
indicators
global
ranking
knowledge
economy
index
Communication
and information
technology
index
Economic
incentive
index and
institutional
system
Creativity
index
education
index
1995 25 8.18 8.34 6.93 8.22 9.13
2000 24 8.42 9.21 6.83 8.58 9.06
2012 29 7.97 8.05 5.93 8.8 9.09
Source: prepared by the researcher based on KAM Knowledge Assessment Methodology
(KAM) 1995, 2000, 2012.
From the data of the previous table, it is clear that:

540
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
 The data shown in the previous table indicate that during the period from 1995 until the
latest report of the Knowledge Economy Index published in 2012, we find that Korea
is among the top 25% of countries in 2012 by ranking 29 globally. It declined from 25th
in the world in 1995 to 29th in 2012, through a slight improvement in the period from
1995-2000, when it ranked 24th globally. Balanced with regard to both the indicators
of communication and information technology and the creativity index.
 That is, South Korea succeeded in its efforts to maintain a fairly stable and balanced
level on the map of the knowledge economy during the study period, as Korea was able
to lead the global indicators regarding information technology and remain with the top
25% of the first countries in the knowledge economy index.
3.4.5. Egypt indictors in the global map of the knowledge economy:
Egypt occupies a late position among the group of countries studied by the World Bank, which
are 146 countries, as they are located within the group of countries in the Middle East and
North Africa, and the value of the knowledge economy index in Egypt is:
Table No. (5) Knowledge economy index for Egypt during the period from 1995 to 2012.
indicators
global
ranking
knowledge
economy
index
Communication
and information
technology
index
Economic
incentive
index and
institutional
system
Creativity
index
education
index
1995 87 4.68 4.87 4.14 5.08 4.64
2000 88 4.29 ....... ....... ........ ......
2012 97 3.78 3.12 4.5 4.11 3.37
Source: Prepared by the researcher based on KAM 1995, 2000, 2012.
 Egypt occupies the 97th place out of 146 countries, and at the global level, Egypt has a
low position on the global map compared to the developed economies with high income
and the middle-income countries - the upper segment - while it enjoys a better position
compared to the low-income countries and the lower segment of the countries with middle
income
 The knowledge economy index for Egypt declined on the global economy map from the
87th position in 1995 with an index value of 4.68 to the 88th position in 2000 with a value
of 4.29 and then to the 97th position in 2012 with a value of 3.78. With the improvement
of the performance of some other economies, which led to the regression of Egypt's
position to a position that is later than what was previously
Table No. (6) Internet users (per million people) during the period from 2010 to 2020
The statement numbers are in thousand
2010 2012 2014 2016 2018 2020
Iraq ---- 1 1 4 11 17
South Korea 175 268 408 721 2066 5939

541
541 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
Egypt 2 5 8 14 33 42
Source / by the researcher based on the World Bank database for multiple years.
Available on the link ON 9 - 1-2023
https://data.albankaldawli.org/indicator/IT.NET.SECR.P6?locations=EG-
IQ&view=chart
3.5.Global Knowledge Index 2017:
The Arab Knowledge Index was established to measure knowledge from the
perspective of development in the Arab region, taking into account the specificities of
the Arab region, its cultural contexts, needs and challenges, and the pivotal role of Arab
youth as one of the most important elements for building knowledge societies.
The Arab Knowledge Index focuses on a number of vital sectors such as pre-university
education, technical education and vocational training, higher education, information
and communication technology, the economy, and research, development and
innovation, containing more than 300 indicators in various of these sectors. The Arab
Knowledge Index is distinguished in that it It takes into account, for the first time, new
sectors such as technical education and vocational training, as well as the interaction
between research and development on the one hand and innovation on the other, as well
as the interaction between different sectors.
In 2017, the Arab Knowledge Index was developed to include 131 countries from all
over the world under a new title “Global Knowledge Index”, thus becoming an index
of knowledge at the global level, so that the Arab Knowledge Index was published in
2015 and 2016. And in 2017, it was launched The Global Knowledge Index, for the
same previous indicators in addition to the enabling environment index, Switzerland
came in first place, followed by Singapore and Finland in the ranking of countries in
the report, while Yemen came in 131st and last place in the report, while the United
Arab Emirates achieved first place at the Arab level and 25th At the global level,
followed by the State of Qatar in second place in the Arab world and 41st globally
Table No. (7) The ranking of Korea and Egypt in the new global knowledge index
2021 2020 2019 2018 2017
18 19 19 25 19 South Korea
88 72 82 99 95 Egypt
Table No. (7) The ranking of Korea and Egypt in the new global knowledge index
https://www.knowledge4all.com/ar/dashboard
It is clear from the previous table the ranking of Korea and Egypt in the new global
knowledge index during the period from 2017 to 2021, as well as the clear relative
stability of Korea’s ranking during the same period, which demonstrates the success of
Korea’s policies in preserving its sub-indices and its knowledge index, as evidenced
Egypt's ranking in the index improved during the same period. During 2017, Egypt's
ranking was 95 globally, and it improved to 82 during 2019. There is also a noticeable
improvement in the following year, as Egypt achieved a rank of 72 globally, which

542
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
highlights Egypt's role during that period in advancing the knowledge index and sub-
indicators. He made efforts on a number of levels to achieve this improvement, and
during the year 2021 Egypt achieved the 88th ranking and Korea 18th, and since there
is no ranking for Iraq in knowledge reports, the Korean and Egyptian cases must be
studied and benefit from those experiences.
3.6.The result of countries' experiences in digital transformation and the knowledge
economy
3.6.1. Development efforts and transformation towards a knowledge economy in South
Korea: South Korea announced its national strategies for the knowledge economy in
2000, which included five main axes, including (information infrastructure, human
resources, knowledge industries, science and technology, and societal convergence in
the field of information).The most important objectives of the strategy were as follows:
 Strengthening the fundamentals of the market economy by carrying out structural
reforms in the financial sector, the government sector, the business sector, and the labor
market, in order to reduce government interference in economic activity.
 Opening up to the outside world by following liberalization policies to attract foreign
direct investment and providing a social and cultural environment that allows openness
and mobilization of internal and external resources.
 Intensifying human investment to develop creative and innovative energies by focusing
on learning, training, science and technology, research and development,
communications and information systems.
 Narrowing societal differences in levels of knowledge, technology and income.
 Stimulating research and development systems, knowledge creation processes and
patents, i.e. adopting a system of economic incentives.
 Achieving effective participation between the government, the private sector, civil
society institutions, and the people.
This should be implemented through a number of axes as follows:
3.6.1.1. the axis of communication and information technology: -
Where the Korean government focused on developing its infrastructure and information by
focusing on local technologies instead of abroad, while stimulating the private sector and
relying on these national technologies, and Korean efforts centered on implementing,
developing and benefiting from this axis, it implemented the Korea 1999 project.
The Cyber Korea project in 1999 included the following objectives:
 Defining six strategic areas to develop the competitive technical capabilities of Korean
companies at the international level (next-generation Internet, telephone communications,
optical fibers, digital broadcasting, wireless communications, computer operating
programs)
 Creating one million jobs and spending 118 trillion yuan to develop the communications
and information technology sector.
 Providing more than 5,000 enterprises with risk capital, with doubling the proportion of the
Korean component in information technology equipment.

543
543 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
 Increasing the number of Internet users to 10 million by the year 2000.
3.6.1.2. the institutional framework and the business environment:
In the aftermath of the Asian financial crisis in 1997, the Korean government adopted a set
of reform programs aimed at improving the efficiency of the financial system, providing a
stable economic climate for the business sector, enhancing market competitiveness, reducing
quantitative and non-quantitative restrictions for customs in order to liberalize trade, as well as
restructuring government institutions and adhering to the rules of good governance. In terms
of transparency and disclosure of information, this trend has helped support the knowledge-
based economy. A ministry called the Ministry of Knowledge Economy was established in
2008 in order to support the innovative and competitive capabilities of small and medium
enterprises by creating a supportive work environment to benefit from knowledge and
information and communication technology.
3.6.1.3. human capital development, research and development:
A / Human capital development
So that one of the priorities of the policies set in South Korea was the gradual shift from
investing in in-kind capital to investing in human capital, and this investment orientation for
the development of human resources resulted in the following advantages:
 Complete eradication of illiteracy as of the late nineties, after the illiteracy rate was
close to 10% in 1970.
 Maintaining full absorption in primary education (100%) as of 1975.
 The increase in enrollment rates in general secondary education from less than 40% in
1970 to more than 90% in 2004.
 The increase in the enrollment rate of general and technical secondary school graduates
in universities and higher institutes (89% and 62%, respectively, in 2004), compared to
40% and 10%, respectively, in 1970.
 Low dropout rate from intermediate education (0.8%), secondary education (2.1%) and
higher education (2.5%).
 An increase in the enrollment rate in university education to about 62% in 2004.
 The percentage of the population with higher education has increased to 39% of the
total population.
One of the most important features that distinguishes the Korean experience in caring for
education is that it is considered a model in how to adapt education to serve economic goals. It
is also considered as a strategy for other countries to follow in the same footsteps of the Korean
experience in education. The features of this strategy are as follows:
 Compatibility of the system with the requirements of the stages of economic
development.
 Continuing national plans for human resource development, and what this requires in
terms of reviewing objectives, strategies, policies and all elements of the educational
system, including institutional frameworks, and continuous follow-up of performance
indicators and output evaluation.

544
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
 The growing role of private investment in the field of education, especially secondary
and university education, which enabled the government to provide more funds for
basic education.
B/ Expenditure on research and development:
Among the most important Korean efforts in the field of research and development are the
following:
 The active role of the government sector in supporting research and development
activity by establishing scientific and research infrastructure bases in line with the
requirements of each development stage.
 Stimulating the private sector to invest in research and development as protection from
the risks of foreign competition in light of the government's adoption of the export-
orientation strategy and in light of the industrial organization's dependence on giant
companies that are able, by virtue of their size and financial resources, to finance
spending on research and development programs, and this is in addition to granting tax
benefits and financial incentives. To activate scientific research for the private sector,
and to provide technical support for small and medium-sized projects.
 Adapting the transfer of knowledge, starting with importing foreign technology,
absorbing and adapting it at a later stage, and then starting to replace local technologies
as an alternative in light of the growing national innovative capabilities and the
availability of relatively skilled technical labor produced by the educational system.
 The influx of foreign direct investment, licenses for foreign companies, and imports of
capital goods, which achieved great successes in transferring technology from abroad
to the inside, especially in the nineties.
 Focusing research and development efforts in industries with a competitive advantage,
which are industries related to communications and information systems, such as
manufacturing communication devices, semiconductors, computers, and electronic and
electrical products.
 The Korean policies also implemented many facilities in order to achieve further
development with regard to the research and development axis.
 Increasing public support directed to basic research, supporting research centers in
universities, providing incentives, designing a system that provides qualified graduates
for industry, removing regulatory obstacles that limit the movement of researchers from
public institutions to private companies, stimulating innovations in the field of small
and medium enterprises, shifting from an innovative support system to sectoral level to
enhance innovative efforts at the level of industrial clusters,
 This is in addition to coordination between the policies of ministries and agencies
concerned with innovation (educational policies, industrial policies, and science and
technology policies).
3.6.2. Development efforts and transformation towards a knowledge economy in
Egypt.

545
545 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
We review the most important developments that Egypt witnessed regarding the
communications and information technology sector, since the start of providing automated
services until the great development of the sector, as follows:
 Automated service began in Egypt in 1929 with the first electro-mechanical, rotary
exchange in Ramses. After that, electro-mechanical exchanges, the cross-pole system
and electronic exchanges were installed, and then digital electronic exchanges were
used, and this type was used for the first time in 1987 with a capacity of 40,000 lines in
the exchange. In downtown Cairo, a contract was signed to establish a new building for
digital exchanges in 6th of October City, with the participation of Telecom Egypt, the
Egyptian Company for Telephone Equipment Industry, and the German company
Siemens to produce automatic exchanges with a capacity of 250,000 lines annually.
 The development of the telephone network, as the number of telephone lines reached
510 thousand telephone lines in 1981, then the number increased to 6.4 million
telephone lines in 1999, and in 2002 the number reached 9.4 million telephone lines.
As for subscribers, the number jumped from 418 thousand in 1981 to 4.9 million in
1999, then The number reached 7.2 million subscribers in July 2002.
 As for the cities connected to the automated pager, the number reached 7 cities in 1981,
then the number jumped to 278 in July 2002.
 The integrated digital network service was introduced, through which a large number
of regular and digital telephones, faxes, computers and the Internet are provided on the
same telephone line using the end of the subscriber's terminal. The number of
subscribers in 1999 reached 50 subscribers, and the number reached 8,249 subscribers
in July 2002.
 For subscribers of the National Information Network, the number of subscribers
reached 1910 subscribers in 1999, and the number reached 2,564 in July 2002. The
network is connected to a number of other international networks at the international
level in America, France, Spain, England and Syria.
 Many advanced international communication centers have been established and
provide booths for the public service of the currency system as well as the magnetic
card for local and international communications. The number of TE booths reached 250
in 1981, and the number reached 4912 booths in July 2000.
 Microwave networks have been established between Egypt and Jordan with a capacity
of 960 circuits, and between Egypt and Libya with a capacity of 1180 circuits, in
addition to fiber optic cables between Egypt and Libya.
 Egypt has worked to benefit from the transit communications traffic by subscribing to
the international submarine cables such as the Samoy submarine cable and the Falah
international marine cable linking Japan and Europe.
 Many space stations have been established, where two stations work with the satellites
of the International Space Corporation (Intelsat), another works with the Arab satellite
Arabsat, and one station works with the satellites of the Maritime Space Corporation
Inmarsat. There are also 4 stations working to provide 11 television channels working
with Atelsat, Arabsat and Asiasat, and the Iridium system for communications via

546
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
satellite was introduced (and through the “Iridium” system, customers, both companies
and individuals, are able to use telecommunication services in remote and remote areas
where there is no coverage of fixed and mobile communications networks). The number
of subscribers to this system reached 172 in 1999, then this number rose to 204 in July
2000.
 There are many measures that have been taken in the field of data delivery networks,
where Egyptney was established in 1989 to transfer data, and this company covers
Cairo, Alexandria, Suez and the Delta governorates, and works to provide
communication with information networks in Europe, Asia and America, then followed
by the establishment of Readeptnet to transmit Data on financial markets, exchange
rates, foreign trade statistics and export opportunities. It also has contact with
commercial representation offices in Egyptian embassies abroad.
 The G.S.M900 mobile phone started working in cooperation with the French company
Alcatel and Telecom Egypt to cover the regions (Greater Cairo, Alexandria, Ismailia,
Luxor, Aswan, Sharm El-Sheikh, Hurghada, and the desert roads between Cairo,
Alexandria, Cairo and Ismailia).
 In addition to voice services, the mobile phone provides fax services and Internet
communications
 In 1999, this system was restructured so that Mobinil companies and bankers, and now
Vodafone, work to cover all parts of the Republic.
 The Internet was introduced in Egypt in 1993 through the Egyptian Universities
Network in the Supreme Council of Universities with a capacity of 64 kilobits / second,
then after that the Information and Decision Support Center headed by the Council of
Ministers and many private companies, and the total capacity of the Internet reaches
895 million pulses / second and the number of users 2.3 million users in 2002. The
Internet also covers all governorates of Egypt.
4. Econometrics Analysis
4.1.The evolution of the indicators of digital transformation and the knowledge economy
A- in South Korea

547
547 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
Figure (2) The evolution of the indicators of digital transformation in South Korea
during the period )2000 -2020 (
Figure (3) The evolution of the knowledge economy in South Korea
during the period )1995 -2012 (
B- in Egypt
2.2 2.3 2.5 2.8 3.1 3.5 4 4.3 3.99 4.52 4.81
2345 3034 3301 4175 4868 5380 6361 6899 7086 7980 8714
35% 31.5 33 32 28 29 26 27 27 36 3654 47 76 93 100 132 130 149 135 193 164
72831 76570 105250 125476 127114 131805 148136 164073 163424 162561 180477
29179 29566 34865 40713 43518 38296 40779 46219 45406 47431 46282
15905 20092 27662 36860 44094 50589 56268 60705 62735 66376
0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
D&R spending as a share of GDP
Number of researchers (per million population)
High-technology exports % of manufactured goods exports
Advanced technology exports (in current US dollars) billion $
Patents (for residents)
Patents (for non-residents)
Scientific and technical journal articles
25
8.18 8.34 6.93 8.22 9.13
24
8.42 9.21 6.83 8.58 9.06
29
7.97 8.05 5.93 8.8 9.09
1995 2000 2012

548
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
Figure (4) The evolution of the indicators of digital transformation in Egypt
during the period )2000 -2020 (
Figure (5) The evolution of the knowledge economy in Egypt
during the period )1995 -2012 (
C- in Iraq
0.19 0 0.27 0.26 0.27 0.43 0.51 0.64 0.71 0.72 0.960 0 0 631 439 492 517 675 689 687 838
00001111113
0 0 0 0 98.8 105 79 168 56 125 343
534 627 382 488 481 605 683 752 920 997 978
1081 788 312 999 1649 1625 1528 1384 1258 1258 1229
2705 3060 3601 4005 4961 6608 8345 9172 11109 13327
0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
D&R spending as a share of GDP
Number of researchers (per million population)
High-technology exports % of manufactured goods exports
Advanced technology exports (in current US dollars) billion $
Patents (for residents)
Patents (for non-residents)
87
4.68 4.87 4.14 5.08 4.64
88
4.29 0 0 0 0
97
3.78 3.12 4.5 4.11 3.37
1995 2000 2012

549
549 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
Figure (6) The evolution of the indicators of digital transformation in Iraq
during the period )2000 -2020 (
Internet users (per million people) during the period from 2010 to 2020
Figure (7) The evolution of the Internet users (per million people) during the period
from 2010 to 2020
4.2.Standard relationships between the independent variable (digital transformation)
and the dependent variables (knowledge economy)
In order to measure and analyze the effect of the independent variable (digital
transformation) and the dependent variable (knowledge economy) were calculated through the
use of a set of standard tests such as the extended Dickey-Fuller test, causality test and co-
integration test to test the relationship between variables using E-Views.
- in South Korea
0 0 0 0 0.03 0.04 0.04 0.04 0.04 0.04 0.040 0 0 0 391 432 441 70 65 111 141
00000000335 653 635
00000000102 77 98
92 106 93 248 310 554 826 866 1236
6073
0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
D&R spending as a share of GDP
Number of researchers (per million population)
Patents (for residents)
Patents (for non-residents)
Scientific and technical journal articles
0 1 1 411 17
175 268 408 721
2066
5939
25 8 14 33 42
2010 2012 2014 2016 2018 2020
IRAQ South Korea EGYPT

550
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
 unit root test : To measure the stability of the model variables, the developed Dickey-
Fuller test (ADF) was used. Table (8) shows the stability of the digital transformation (X)
at its level, which shows that the chain is integrated of zero degree, and it shows the
instability of the knowledge economy (Y) at its level and stability occurred when the first
difference was taken, which shows that the series is integrated of the first degree, and
because the two series are complementary at two different degrees, the Ardle co-
integration is used
Table (8) Developed Dickey-Fuller Test
Source: E-views 12 program calculations
 Causality Test : It is clear that there are no two-way or one-way causal relationships
between the variables at the significance level 0.05
Table (9) Causality Test
Null Hypothesis: Obs
F-
Statistic Prob.
Y does not Granger Cause X 26 2.21336
0.1399
X does not Granger Cause Y 2.18216
0.1434
Source: E-views 12 program calculations
 Bounds Test : It turns out that there is co-integration between the variables at the
significance level 0.05
Table (10) Cointegration Test
F-Bounds Test
Null Hypothesis: No levels
relationship
Test Statistic Value Sign if.
I(0)
I(1)
Asymptotic:
n=1000
F-statistic 4.518192
10%
3.02
3.51
k 1 5%
3.62
4.16
2.5%
4.18
4.79
1%
4.94
5.58
Variable
s
Level 1st Difference
ADF Sig. Result ADF Sig. Result
X -7.225
0.000
stationary
Y -1.329
0.317
No
stationary
-
6.221 0.000 stationary

551
551 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
Source: E-views 12 program calculations
- in Egypt : unit root test
To measure the stability of the model variables, the developed Dickey-Fuller test
(ADF) was used. Table (11) shows the stability of the digital transformation (X) at
its level, which shows that the chain is integrated of zero degree, and it shows the
instability of the knowledge economy (Y) at its level and stability occurred when
the first difference was taken, which shows that the series is integrated of the first
degree, and because the two series are complementary at two different degrees, the
Ardle co-integration is used
Table (11) Developed Dickey-Fuller Test
Source: E-views 12 program calculations
 Causality Test : It is clear that there are no two-way or one-way causal relationships
between the variables at the significance level 0.05.
Table (12) Causality Test
Null Hypothesis: Obs
F-
Statistic
Prob.
Y does not Granger Cause X 26 0.50869
0.6102
X does not Granger Cause Y 0.44244
0.6497
Source: E-views 12 program calculations
 Bounds Test : It turns out that there is co-integration between the variables at the
significance level 0.05
Table (13) Cointegration Test
F-Bounds Test
Null Hypothesis: No levels
relationship
Test Statistic Value Sign if.
I(0)
I(1)
Asymptotic:
n=1000
F-statistic 8.948742
10%
3.02
3.51
k 1 5%
3.62
4.16
2.5%
4.18
4.79
1%
4.94
5.58
Source: E-views 12 program calculations
Variables Level 1st Difference
ADF Sig. Result ADF Sig. Result
X -6.253 0.000 stationary
Y -1.523 0.417 No
stationary
-5.936 0.000 stationary

552
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
4.2.1. The impact of the independent variable (digital transformation) on the dependent
variables (knowledge economy)
In order to identify the impact of the independent variable (digital transformation) on the
dependent variables (knowledge economy) during the period study and to test the study’s
hypotheses, a simple regression equation was calculated between the independent variable
(digital transformation) and the (knowledge economy) (dependent variable) during the period
study
- in South Korea : It became clear the significance of the model, where the value of F
was statistically significant at the level of 0.01 and the presence of a statistically
significant impact of the level of (digital transformation) on the level of (knowledge
economy) at the level of 0.01, and it was found that the independent variable (digital
transformation) explains 70.5% of the changes that occur in the dependent variable
(knowledge economy), while it returns The rest of the changes were for other variables
that were not included in the model, and it was clear that there was a positive impact of
the level of (digital transformation) on the level of (knowledge economy) and it was
clear that there was a strong positive relationship between the level of (digital
transformation) and the level of (knowledge economy), where the value of the
correlation coefficient reached 0.840 and It was found that when the (digital
transformation) increased by 1%, the level of (knowledge economy) increased by
0.632% and this explains the correctness of the first hypothesis of the study
Table (14) Impact of the (digital transformation) on the dependent variables (knowledge
economy) in south Korea during the study period
b t F
r R
2
P-VALUE
0.632 -19.371** 375.254 ** 0.840- 0.705
0.000
- in Egypt : It became clear the significance of the model, where the value of F was
statistically significant at the level of 0.01 and the presence of a statistically significant
impact of the level of (digital transformation) on the level of (knowledge economy) at
the level of 0.01, and it was found that the independent variable (digital transformation)
explains 70.5% of the changes that occur in the dependent variable (knowledge
economy), while it returns The rest of the changes were for other variables that were
not included in the model, and it was clear that there was a positive impact of the level
of (digital transformation) on the level of (knowledge economy) and it was clear that
there was a strong positive relationship between the level of (digital transformation)
and the level of (knowledge economy), where the value of the correlation coefficient
reached 0.755 and It was found that when the (digital transformation) increased by 1%,
the level of (knowledge economy) increased by 1.693%. and this explains the
correctness of the second hypothesis of the study.
Table (15) Impact of the (digital transformation) on the dependent variables (knowledge
economy) in Egypt during the study period
b t F
r R
2
P-VALUE
1.693 14.431**
208.254**
0.755
0.572 0.000

553
553 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
5. Conclusion
 The statistically significant positive impact of the level of (digital transformation) on
the level of (knowledge economy) in south Korea at the level of 0.01, and the value of
the correlation coefficient reached 0.840 and it was found that when the (digital
transformation) increased by 1%, the level of (knowledge economy) increased by
0.632% in south Korea and this explains the correctness of the first hypothesis of the
study
 The statistically significant positive impact of the level of (digital transformation) on
the level of (knowledge economy) in Egypt at the level of 0.01, and the value of the
correlation coefficient reached 0.755 and it was found that when the (digital
transformation) increased by 1%, the level of (knowledge economy) increased by
1.693% in Egypt and this explains the correctness of the second hypothesis of the study
 Work on the use of modern methods in the field of digital transformation and the use
of modern technologies in the field of transition to the knowledge economy in Iraq
 Paying attention to studying the experiences that countries have undertaken in the field
of digital transformation and how to achieve a knowledge economy, especially the
experiences of Egypt and South Korea, and to benefit from the methods they used to
overcome the challenges and difficulties they faced in this field.
 Great interest in education in general, providing appropriate support for technical
education, setting educational plans related to the goals of economic development, and
linking the outputs of the educational process to the requirements of the labor market,
as South Korea did.
 Benefiting from international expertise specialized in the field of information
technology, attracting multinational companies, foreign investment, technology
transfer, and focusing on the technological side and high-tech exports.
 Providing the appropriate infrastructure and infrastructure for the telecommunications
and information technology sector to suit the continuous changes and developments in
this field, as Egypt did.
 Paying attention to creativity and innovation, increasing research and development
expenditures, and encouraging new research and inventions.
 Provide an appropriate and appropriate institutional framework to attract international
expertise and support institutions to confront corruption, and provide a good
institutional and supervisory framework to reduce illegal operations.
 Focusing and paying attention to the pillars of the knowledge economy and setting long,
medium and short-term plans and strategies to work on developing the pillars of the
knowledge economy in a way that serves the transition to a knowledge economy, as
South Korea did.
 Diversifying the economic structure so that it leads to diversifying the production
structure and creating new income-generating sectors so that the total dependence on
the revenues of the main sector in the economy decreases, and opens new areas with
higher added value and is able to provide more productive job opportunities for the
national workforce, and this will lead to raising growth rates in the long term'.

554
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
 Providing a comprehensive institutional entity to encourage innovation, research and
development, and close linking with the business community, while coordinating the
encouraging initiatives set for research and development.
 Building the knowledge economy must be done through a gradual system of the four
pillars within a framework of coordination and integration with the economic phase that
the country is going through, as gradualism helps to pay attention to education, absorb
the technology workforce, supply education with modern technologies and then provide
human capabilities Capable of dealing with the great development in global
technologies.
 The effective role of the government in strengthening the foundations of the knowledge
economy, such as the establishment of an independent ministry of the knowledge
economy specialized in following up, developing and providing appropriate
opportunities for projects and others, establishing research and development
institutions, providing a modern information environment, encouraging investment in
education and training and motivating the private sector to develop and enter the fields
of information technology .
 Cooperate with international institutions interested in and supportive of the pillars of
the knowledge economy, particularly the communications and information technology
sector
References
1. Attaran, M., & Attaran, S. (2020). Digital transformation and economic contributions
of 5G networks. International Journal of Enterprise Information Systems (IJEIS),
16(4),58-79.
2. Azarenko, N. Y., Mikheenko, O. V., Chepikova, E. M., & Кazakov, O. D. (2018).
Formation of innovative mechanism of staff training in the conditions of digital
transformation of economy. In 2018 IEEE International Conference" Quality
Management, Transport and Information Security, Information
Technologies"(IT&QM&IS) (pp. 764-768). IEEE.
3. Bart van Ark , The Productivity Paradox of the New Digital Economy , (2016) ,The
Conference Board and the University of Groningen1 , Holland .
4. Baul Stephen Walker, (2011 ) , THE FIRM IN THE KNOWLEDGE ECONOMY ,
Doctor of Philosophy in Economics،University of Canterbury Christchurch, New
Zealand .Chen , Derek H. C. and others , ( 2005 ) . “ The Knowledge Economy , the
KAM Methodology and World Bank Operations “ , world bank .
5. Cheonisk , W. , (2006) , “ korea’s Lesson Learned in Pursuit of a Knowledge Economy
Strategy “ , The World Bank.
6. Chowdhury , A.R. (Raj) , ( 2002 ) , “ The Digital Economy and The Rise of Knowledge
Worker “ P.15 .
7. Dahlman , C. and others , ( 2006 ) , “ Finland as a Knowledge Economy : Elements of
Success and Lessons Learned “ . Washington , DC: The World Bank .
8. Durker , Peter , ( 1969 ) , “ the age of Discontinuity : Guidelines to Our Changing
Society “ . New York , P.20 .

555
555 | P a g e
Dr. Yaseen Othman Abdullah
Business, Management and Economics Engineering, 2023 Volume 21 Issue 1, ISSN: 2669-2481 / eISSN: 2669-249X
9. Edward T. , (2007) , “ The Shifting Nature of Chinese Industry : Chinese executives
questions How to Complete in a Changing World “ , P.3 .
10. Geyda, A. S., Gurieva, T. N., & Naumov, V. N. (2022). Conceptual and Mathematical
Models, Methods, and Technologies for the Study of the Digital Transformation of
Economic and Social Systems: A Literature Review and Research Agenda (Part II).
Administrative Consulting.
11. Global Knowledge Index Report, 2012
12. Global Knowledge Index Report, 2017
13. Hanas A. Cader ,(2008) , The Evolution of the Knowledge Economy , outh Carolina
State University , USA .
14. Harry J. Holzer , (2017) , Building a New Middle Class in the Knowledge Economy ,
McCourt School of Public Policy Georgetown University , Washington .
15. http://www.albankaldawli.org
16. Implementation Of The International Covenant On Economic , (2006) , Social And
Cultural Rights Fifth periodic reports submitted by States parties under articles 16 and
17 of the Covenant Finland, United Nation , Economic and Social Council , PP..
117:128.
17. ITU , (2013) , “measuring the information society report 2013 “ , Geneva : International
Telecommunication Union .
18. ITU .International Telecommunication Union
19. Joan Torrent Sellens , (2009) , Knowledge, networks and economic activity. Revisiting
the network effects in the knowledge economy , Internet Interdisciplinary Institute
(IN3) , Universitat Oberta de Catalunya (UOC) , Barcelona .
20. Mario , Andrea (2000) , “ Division of Labor and Economic Growth : From Adam Smith
to Paul Romer “ , University of Pisa , Italy , P.42 .
21. Mohammed bin Rashid Al Maktoum Foundation website, Global Knowledge Index,
2021, available at https://www.knowledge4all.com/ar/dashboard
22. Morkovkin, D. E., Kolosova, E. V., Sadriddinov, M. I., Semkina, N. S., & Gibadullin,
A. A. (2020). Organizational and management mechanisms for the digital
transformation of economic activities. In IOP conference series: earth and
environmental science (Vol. 507, No. 1, p. 012023). IOP Publishing.
23. OECD.organization for economic cooperation and development , (1996) , the
knowledge Based Economy Paris , P11 .
24. Pilík, M., Juřičková, E., & Adu Kwarteng, M. (2017). On-line shopping behaviour in
the Czech Republic under the Digital Transformation of Economy. Economic Annals-
XXI, 165.
25. Popkova, E. G. (2019). Preconditions of formation and development of industry 4.0 in
the conditions of knowledge economy. In Industry 4.0: Industrial Revolution of the 21st
Century (pp. 65-72). Springer, Cham.
26. porat –Escwa.Strengthening the ICT Sector to Meet the Challenges of the knowledge
Economy .report 2011 p 8.
27. Rafał Żelazny , (2015) , Journal of Economics and Management , University of
Economics in Katowice , Poland .

556
THE ROLE OF DIGITAL TRANSFORMATION IN THE TRANSITION TO THE KNOWLEDGE ECONOMY IN
IRAQ, EGYPT AND SOUTH KOREA
28. Ragulina, Y. V. (2019). Priorities of development of industry 4.0 in modern economic
systems with different progress in formation of knowledge economy. In Industry 4.0:
Industrial Revolution of the 21st Century (pp. 167-174). Springer, Cham.
29. THE KNOWLEDGE-BASED ECONOMY ، OCDE 1996،
30. Udaltsova, N. L. (2020). Digital Transformation of Economy. Quality-access to
success, 21(175).
31. UNCTAD , ( 2011 ) , ICT Policy Review : Egypt Switzerland : United Nations
Publications
32. UNDP , Malaysia : Achieving The Millennim Development Goals , ( 2015 ) .
33. World Bank, the Knowledge Economy, (2005) , the kam methodology and world bank
operation ،P2.
34. World Economic Forum , Global Competitiveness Report, 2011-2012,/ 2016-2017.
35. World Economic Forum , Global Competitiveness Report, 2011-2012/2014-2015/
2016-2017
36. World Economic Forum , Global Competitiveness Report,2005-2006/ 2011-
2012/2014-2015/ 2016-2017
37. www.escwa.org.lb
38. Yankovskaya, V. V., Osavelyuk, E. A., Inozemtsev, M. I., & Haabazoka, L. (2021).
The existing and perspective international institutions for supporting digital
transformation of economy. The institutional foundation of the digital economy in the
21st century, 165-172.