Knowledge Economy

In a knowledge- based economy, society’s resources are largely channeled toward innovation and the creation of knowledge. Given recent technological advances and the development of new products and processes, developed countries have experienced an increase in intellectual capital, leading to higher economic growth and productivity. This emerging “information” society is the result of countries investing a large amount of their intangible assets in research- intensive industries. On the other hand, many developing nations are still undergoing a shift in their economic activity, which remains heavily concentrated on agriculture and industrial labour.