Knowledge Economy
What Is the Knowledge Economy? The knowledge economy is a system of consumption and production that is based on intellectual capital . In particular, it refers to the ability to capitalize on scientific discoveries and basic and applied research. This has come to represent a large component of all economic activity in most developed countries. In a knowledge economy, a significant component of value may thus consist of intangible assets such as the value of its workers' knowledge or intellectual property. KEY TAKEAWAYS The knowledge economy describes the contemporary commercialization of science and academic scholarship. In the knowledge economy, innovation based on research is commodified via patents and other forms of intellectual property. In the Information Age, the global economy has moved further toward the knowledge economy. The Knowledge Economy Explained Less developed countries tend to have agriculture and manufacturing-based economies. A developing country has a man