On Knowledge-based Theory of the Firm

The traditional business-based theory of the firm pays more attention to the business action of the firm and neglects the production action,simply regarding the firm as the simpleBusiness Unit. However,in knowledge economic times,knowledge becomes the most important factors that the firm put into,and the firm has turned to knowledge production form from the material production form,so the firm should be regarded asKnowledge Productioin Unit,which needs a wholly new theory of the firm,i.e. using the knowledge-based theory of the firm to explain the nature of the firm under knowledge economic times.