Abstract
Effective Knowledge Management KM is an important process for handling information which is essential for implementing successful projects and makes improvement to the knowledge based economy. KM deals with how knowledge is produced, shared in a secure manner, and used by organizations or individual for the benefit of the economy. In order to achieve an effective KM that contributes to the overall knowledge economy, there should be a proper way to measure it according to well known set of criteria. In this paper an analytical method has been devised based on different performance indicators to verify the availability of useful knowledge which is linked successful knowledge investment and its business continuity. Unlike other methods that focus on descriptive approach, the analytical method relies on qualitative approach that is based on how the probability of the knowledge factors can occur in a certain environment. This new method would allow managers to evaluate the performance of knowledge based economy of different nations an assist them in identifying the reason for lacking economy growth, and therefore plan for improvement. [PUBLICATION ABSTRACT]