Knowledge Economy
Definition of 'Knowledge Economy'A system of consumption and production that is based on intellectual capital. The knowledge economy commonly makes up a large share of all economic activity in developed countries. In a knowledge economy, a significant part of a company's value may consist of intangible assets, such as the value of its workers' knowledge (intellectual capital). However, generally accepted accounting principles do not allow companies to include these assets on balance sheets. |
|
Investopedia explains 'Knowledge Economy'Lesser-developed countries tend to have agriculture or agriculture and manufacturing-based economies, while developing countries tend to have manufacturing or manufacturing and service-based economies, and developed countries tend to have service-based economies.Most countries' economies will consist of each of these three major categories of economic activity, but in differing proportions relative to the wealth of that country. Examples of knowledge economy activities include research, technical support and consulting. |
Related Definitions
Articles Of Interest
-
How Globalization Affects Developed Countries
The increase in communications technology has companies competing in a global market. -
How Education And Training Affect The Economy
Education and training benefit not only the worker, but also the employer and the country as a whole. -
Tankan Survey Provides Clues To Japanese Economy
This quarterly survey is crucial for assessing Japan's economic health. -
What Is An Emerging Market Economy?
Emerging markets provide new investment opportunities, but there are risks - both to residents and foreign investors. -
What's the difference between old- and new-economy stocks?
Old-economy stocks represent large, well-established companies that participate in more traditional industry sectors and have little investment or involvement in the technology industry. These ... -
Introduction To Treasury Inflation-Protected Securities (TIPS)
If you want to protect your portfolio from inflation, all you need are a few TIPS. -
Nobel Winners Are Economic Prizes
Before you try to profit from their theories, you should learn about the creators themselves. -
Breaking Down The Balance Of Trade
The balance of trade is a key indicator of a nation’s health. Investors and market professionals appear more concerned with trade deficits than trade surpluses, since chronic deficits may be ... -
Open Market Operations Explained
The term “open market operations” refers to a monetary policy tool in which central banks buy and sell bonds to regulate the money supply in the economy. The United States employs open market ... -
Market Summary for July 26 2013
The major U.S. indices moved largely lower this week, with technical indicators suggesting that declines will continue next week, or at least that sideways trading will take hold.
Free Annual Reports