JMGT_V1_N1_RP5 Ibrahim Badran Journal on Management 2230 – 715X 1 1 70 79 K-economy, civilization, innovation, technology, engineering education, productivity, investment This paper explains the concept of knowledge-driven economy (K-economy) and its relation with the progress of civilization and consequently on the development of any nation. The interaction between knowledge and economy are outlined in terms of innovation, technology, engineering education, productivity and investment, Knowledge applicability and diffusion in the developing societies. The details of the model for knowledge economy basis are also given. The concept of innovation and its interrelationship with the knowledge economy are discussed with some emphasis on productivity and building knowledge society. Case studies and analysis of past experiences are presented. June - August 2006 Copyright © 2006 i-manager publications. All rights reserved. i-manager Publications http://www.imanagerpublications.com/Article.aspx?ArticleId=429