Veera BhatiaseviMahidol University. International College. Business Administration Division2015-08-202018-04-052015-08-202018-04-0520152010International Journal of Business and Management . Vol. 5, No. 1 (2010), 114-122https://repository.li.mahidol.ac.th/handle/123456789/10482This paper has attempted to study the development and growth of a knowledge based economy in two developing countries, namely Malaysia and Thailand. A summary of different economic theories states that the best theoretical grounding for a knowledge based economy is the endogenous growth theory. The conceptual framework established for statistically measuring the success of knowledge-based economy (KBE) comprise of the following variables: 1). Innovation, 2). Information and communication technology, 3). Development and 4). Business Environment. Recommended additions to the framework were proposed in this paper based on integrating the following variables: 1). Government incentives, 2). Better human capital, and 3). Institutional factors. The last section of the paper proposes policy recommendations and conclusions.engMahidol UniversityKnowledge-based economyKBEMalaysiaThailandArticleThe Canadian Center of Science and Education