Knowledge Economy
The global economy currently is in transition from an industrial economy to a knowledge economy: to an economy in which knowledge is both an input of increasing significance into the productive process and a product. In a knowledge economy, labor costs become progressively less important, and scarcity of resources and economies of scale cease to apply.
One definition of the knowledge economy is that “the generation and exploitation of knowledge play the predominant part in the creation of wealth” (United Kingdom Department of Trade and Industry). Features of the knowledge economy include:
- Knowledge becoming more important as an input.
- Knowledge becoming more important as a product.
- Codified knowledge becoming more significant as a component of economic relations.
- Changes in information and communication technologies.
Education and Other Human Capital Competitiveness and Economic Development Knowledge Economy Economic Performance
Related Articles and Reports
More than an Ivory Tower: The Impact of Research Institutions on the Quantity and Quality of Entrepreneurship, National Bureau of Economic Research, May 2021
U.S. University R&D Funding Falls Further Behind OECD Peers, The Information Technology and Innovation Foundation, April 2021
Five Free-Market Myths About Increasing Federal Research Funding, The Information Technology and Innovation Foundation, January 2021
United States Needs to Expand Domestic STEM Doctorates, The Information Technology and Innovation Foundation, December 2020
State Technology and Science Index 2020, Milken Institute, November 2020
Understanding the U.S. National Innovation System, Information Technology & Innovation Foundation, November 2020
The 2020 State New Economy Index, The Information Technology and Innovation Foundation, October 2020
Tapping Into Talent: Coupling Education and Innovation Policies for Economic Growth, National Bureau of Economic Research, September 2020
U.S. Funding for University Research Continues to Slide, The Information Technology and Innovation Foundation, December 2019
Federal Support for R&D Continues Its Ignominious Slide, The Information Technology and Innovation Foundation, August 2019
National Innovation Policies: What Countries Do Best and How They Can Improve, The Information Technology and Innovation Foundation, June 2019
Building a Knowledge Economy -- How Academic R&D Supports High-Tech Employment, Milken Institute, August 2018
Why U.S. Business R&D Is Not as Strong as It Appears, The Information and Technology Foundation, June 2018
Growing the Future: State Efforts to Advance the Life Sciences, The Information Technology and Innovation Foundation, February 2018
Industry Funding of University Research: Which States Lead?, The Information and Technology Foundation, January 2018
The Best States for Data Innovation, The Information Technology and Innovation Foundation, July 2017
The Knowledge Economy, Economicshelp.org, June 2017
False Alarmism: Technological Disruption and the U.S. Labor Market, 1850–2015, The Information Technology and Innovation Foundation, May 2017
Investing in “Innovation Infrastructure” to Restore U.S. Growth, The Information Technology and Innovation Foundation, January 2017
Debunking the Myth of a STEM Surplus, The Information Technology and Innovation Foundation, July 2014
Understanding the U.S. National Innovation System, The Information Technology and Innovation Foundation, June 2014
Driving Innovation and Productivity, The Information and Technology Foundation, April 2014
Federally Supported Innovation, The Information and Technology Foundation, February 2014
University Research Funding: Still Lagging and Showing No Signs of Improvement, The Information Technology and Innovation Foundation, December 2013
Arizona's Technology Workforce: Issues, Opportunities and Competitive Pressures, Arizona State University, L. William Seidman Research Institute, September 2011
Charting a Course for Arizona's Technology-Based Development, Milken Institute, December 2009
High-Technology Activities in Arizona: 2007 Update, Arizona State University, Center for Competitiveness and Prosperity Research, prepared for the Arizona Department of Commerce, January 2008
A Strategic Assessment of the Economic Benefits of Investments in Research in Arizona, Arizona State University, L. William Seidman Research Institute and University of Arizona, Economic and Business Research Center, prepared for Science Foundation Arizona, June 2007
Rising Above The Gathering Storm: Energizing and Employing America for a Brighter Economic Future, National Academy of Sciences, National Academy of Engineering, and Institute of Medicine, 2006