Strengthening the knowledge economy

What is knowledge ecomony? The knowledge economy could be defined as one where "comparative advantage [is] much less a function of natural resource endowments and capital-labour ratios and much more a function of technology and skills". 13 Its development is the product of two forces: a rise in the knowledge intensity of economic activities and an increasing globalization of economic affairs. It is driven by the revolution in information and communications technology, the increasing pace of technological change and by national and international deregulation. 14