The Knowledge Economy

  • Created by: LML09
  • Created on: 01-06-15 11:46

What is it?

  • The knowledge economy is where intellectual skills, knowledge, understanding and ideas are central to economic activity and more important than physical effort
  • The pharmaceutical industry is a good example
  • It is the idea that we use our brains to make our living rather than our hands and manual labour
  • It is about how new technologies have helped transform the way we think and act
  • Ideas and knowledge can drive economic growth, and the government has estimated that over 60% of production is created by knowledge workers
1 of 3

Implications to businesses

  • More emphasis on R&D (Research and Development)
  • A need to invest in new technology and communications and keep updating
  • A need to adapt to rapidally changing markets
  • Employees may need training and updating
  • Managers will need to keep up with new developments
  • New ideas will need protecting
  • There will be more competition from both home and abroad
2 of 3

Implications to the wider economy

  • Education becomes more important
  • Retraining of those with non transferrable skills is necessary
  • Certain skills such as IT and science need encouraging
  • Investment is needed in infrastructure such as broadband and transport
  • IPR (Intellectual Property Rights) need to be protected
  • Areas of structual decline need investment and help
3 of 3


No comments have yet been made

Similar Business Studies & Economics resources:

See all Business Studies & Economics resources »See all The Knowledge Economy resources »