Importance of knowledge based industry
Answers
Explanation:
The sector of the economy which is increasingly based on knowledge-intensive activities, creating a greater reliance on intellectual capital rather than physical inputs.
The OECD state the knowledge economy is associated with:
High-tech manufacturing (computer, electronics, aerospace),
Service sector industries, such as education healthcare and software design
Business services such as insurance, information and communications.
In traditional models of economic activity, the main factors of production are Land, labour, capital, entrepreneur. A Knowledge-based economy is important for widening the scope of labour from producing goods on an assembly line to greater flexibility in design, manufacture and implementation of business ideas.
Types of knowledge
Explicit knowledge – facts figures, data.
Tacit knowledge – how things work, experience, judgement, intuition, the way of dealing with people.
Education qualifications are indications of a person’s explicit knowledge and, to some extent, tacit knowledge. But, a large part of the knowledge economy comes from learning by doing and falls outside the scope of traditional education