A knowledge-based economy is…
“one in which the generation and the exploitation of knowledge has come to play the predominant part in the creation of wealth.
It is not simply about pushing forward the frontiers of knowledge; it is also about the more effective use and exploitation of all types of knowledge in all manner of economic activity”.
Department of Trade and Industry, UK, Our Competitive Future, Building the Knowledge-Driven Economy, 1998.
A knowledge-based economy is where know-how and expertise become as critical as other economic resources (land, capital, labour), or even the centre of the wealth-producing process.
The creation, application, transfer and management of knowledge are the driving forces of economic growth in knowledge-based economies.