Knowledge economy

Knowledge Economy

A knowledge economy is one in which the generation and the exploitation of knowledge has come to play the predominant part in the creation of wealth. The term "knowledge economy" highlights the shift from the industrial era to the information age. Nowadays, central resources for competitive advantage and economic success are effective utilisation of intangible assets such as knowledge, skills, technical expertise and practical know-how. An increasing number of firms rely upon knowledge-based capabilities for production - what R. Florida (1991) calls "innovation-mediated production".

References

Centre for Strategic Economic Studies (2000), "A Primer on the Knowledge Economy", CSES, Victoria University.

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