Knowledge Economy

The “knowledge economy“ emerged in the late 1990s as term to describe how high technology and high value services in IT, biomedical, pharmaceutical, research etc. can contribute to a country’s economic activity.

Many definitions exist for the knowledge economy. In essence though it is where knowledge is the main driver of economic activity.

In more developed economies the knowledge economy is a major agent of change.

Typically many “older” industries e.g. some types of manufacturing and services retreat and move to lower cost regions while workers and companies who can contribute higher value products and services are in greater demand.

For many workers and employers this means they need to be adaptable to changes in the workplace. This includes developing skills related to innovation, entrepreneurial thinking and the use of knowledge.

Some observers maintain that the knowledge economy is responsible for the creation of up to 80% of new jobs.

The central strategy of Ireland and other EU countries is achieving leadership of knowledge economic activity as the basis for a stable and prosperous future.

See Background for good source on the Knowledge Economy and related reports.