The Knowledge Economy

Abstract. We are living through a period of profound change and transformation of the shape of society and its underlying economic base.The nature of production, trade, employment and work in the coming decades will be very different from what it is today. In an agricultural economy land is the key resource. In industrial economy natural resources, such as coal and iron ore and labour are the main resources. A knowledge economy is one in which knowledge is the key resource. One in which the generation and the exploitation of knowledge has come to play the predominant part in the creation of wealth. Key words: knowledge economy, globalization, organization, comparative advantage