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By Eugene G. Rochow

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The fastest growth of output and employment is in the knowledge-intensive service sectors, such as education, communications and information, followed by high-technology indus- Knowledge Economy: An Overview 19 tries such as computer, electronics and aerospace industries. The value added generated by knowledge-based industries in the OECD increased at an annual average rate of seven percent between 1985 and 1994, while the figure for a business sector as a whole was just over five percent. Advances in technology are related to advances in knowledge that come via advances in science, research and development.

Digital technologies make processing, storage and accessing of information increasingly cheaper and easier. Huge quantities of information influence the operation of businesses and markets, and lead to creation of wealth through exploitation of information. An exceptionally strong influence of ICT on economy came from the explosive growth of computer networks, the Internet in particular. ). The cooperation in development of knowledge on a global scale, as well as distance learning, became a reality for millions of people.

Knowledge creation requires cooperation of people with different backgrounds, knowledge and experience since such group of people has no routine solutions at hand (Nonaka and Takeuchi, 1995). Matsushita company developed the first automatic bread-making machine by engaging three product divisions with different cultures. These divisions previously made rice cookers, toasters and coffeemakers, and food processors, and had quite different technical expertise. The first group had expertise in computer control, the second in induction heater technology and the third with rotating motors.

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An introduction to the chemistry of the silicones by Eugene G. Rochow

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