A knowledge economy is an economic system where growth is dependent upon the quantity, quality, and accessibility of the information available rather than the means of production. It is driven by increased digitization and the spread of information and communication technologies, leading to economies where the most valuable assets are knowledge and expertise.
Success in the knowledge economy comes to those who know themselves – their strengths, their values, and how they best perform.
Peter F. Drucker
In Simpler Terms
The knowledge economy’s most valuable asset isn’t gold or oil, but ideas and information. A software developer creating a new app, a researcher making a scientific breakthrough, or a marketing professional devising innovative strategies are all key players. In the knowledge economy, a company’s value often lies more in its intellectual assets—like patents, processes, and expertise—than in its physical assets. Tech giants like Google and Apple are prime examples, where their most valuable assets are their ideas and innovations.
