Knowledge Economy

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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 Says

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.

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'Knowledge Economy'

  • How Education And Training Affect The Economy

    http://www.investopedia.com/articles/economics/09/education-training-advantages.asp
    ... An economy in which employers treat education as an asset in this manner
    is often referred to as a knowledge-based economy. Like ...

  • Intangible Assets Provide Real Value To Stocks

    http://www.investopedia.com/articles/03/010603.asp
    ... These invisible assets are the key drivers of shareholder value in the knowledge
    economy, but accounting rules do not acknowledge this shift in the valuation ...

  • The Huge Benefits Of High School Economics - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/How-High-School-Economics-Can-Help-Global-Financial-Problems.aspx
    ... more efficiently and continue to invest reduced but significant sums back into a
    afflicted and recession hit economy. (To gain more knowledge about recession ...

  • Betting On The Economy: What Are The Odds? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0711/Betting-On-The-Economy-What-Are-The-Odds.aspx
    ... So far Las Vegas bookies don't take bets on the economy or the stock, currency ... and
    not based on any actuarial data, they are also based on knowledge and what ...

  • The Knowledge-Experience Continuum: Where Do You Fall?

    http://www.investopedia.com/articles/financial-theory/08/investing-knowledge-experience.asp
    The Knowledge-Experience Continuum: Where Do You Fall? ... The Know A Littles. The next
    group would be those with a limited degree of knowledge and experience. ...

  • CFA Level 1 Study Guide - Ethics and Standards - Standard IA ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-knowledge-of-law.asp
    ... Standards of Professional Conduct; 1.4 Standard IA: Knowledge of the Law; 1.5
    Standard IB: Independence And Objectivity; 1.6 Standard IC ...

  • Trading Around Key Options Indicators

    http://www.investopedia.com/articles/optioninvestor/12/trading-around-key-option-indicators.asp
    ... increase soon. The combined knowledge of GDP and money supply growth can
    tell a lot about future trends in the economy. If the money ...

  • Megatrends For Maximum Profits

    http://www.investopedia.com/articles/stocks/08/megatrends-stock-market.asp
    ... More than 25 years later, we can see that a lot of what he wrote was right. We do
    have massive globalization, a knowledge-based economy and so on. ...

  • Can You "Learn" The Stock Market?

    http://www.investopedia.com/articles/trading/10/learning-the-stock-market.asp
    ... where our knowledge begins and ends. And most importantly, we do not know what we
    do not know. Some Things Are Intrinsically Controversial The economy is and ...

  • The Federal Reserve: Introduction | Investopedia

    http://www.investopedia.com/university/thefed/
    ... world's largest economy and is, therefore, one of the most powerful organizations
    on earth. As an investor, it is essential to acquire a basic knowledge of the ...

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