This research proposes a different conception of knowledge economy by examining knowledge as a philosophical term and by arguing against Peter Drucker’s conception of knowledge economy. It primarily seeks to address the problem on how the Philippine education responds to the challenge posed by knowledge economy as contrastively conceived here. The research explains how the performance of Philippine education in the past decades, though demonstrating quantitative growth particularly during the 60s and 70s, failed to produce a real qualitative growth adequate to impact on the Philippine knowledge economy. It also substantiates the writer’s claim that there are types of knowledge economy, and that of the Philippines exemplifies a particular type. Though it aims to reach the type of knowledge of economy that characterized those countries in the First World, the Philippine education has to harness first the potential of its present type of knowledge economy by improving the curriculum and teacher education as well as by focusing on BPO, Service-Oriented, and low-end technological courses. This paper ends by proposing a new curriculum for its basic education, secondary education, and tertiary education. It views additional two years of education not as one of the options anymore but the only option to address the present woes in education that are slowly becoming irreversible.