EngenuitySC

What is the knowledge economy?

A “knowledge economy” is an economy that is driven by ideas, knowledge, and skills to create economic benefits and produce jobs.

The knowledge economy is a natural progression of our economic system.  Throughout time, our economy has evolved from agricultural, to industrial, to production-based, to the knowledge-based model we are seeing today.  In an agricultural economy, land is the key resource for producing wealth. In an industrial economy, natural resources, like coal and iron ore, are critical to success.  Manufacturing is the primary component of a production-based economy.  In a knowledge economy, the generation and use of knowledge is the largest factor in the creation of wealth.  

The global desire for new products and services is driving the need for knowledge-based economies.  In this model, intellectual capabilities are more important than physical inputs and natural resources.  Growing knowledge yields new and innovative ideas that, in turn, create demand for new products and services.