This segment of the economy encompasses activities involving the creation, innovation, and sharing of knowledge. It includes intellectual pursuits such as scientific research, technological development, information technology consulting, higher education, and policy making. An example includes a university conducting research on renewable energy sources or a company developing new software applications.
The importance of this sector lies in its contribution to advancements in technology, science, and overall societal progress. It fosters innovation, drives economic growth through the creation of new industries and higher-skilled jobs, and improves decision-making processes through informed policy development. Historically, the expansion of this sector has been closely linked to the rise of information technology and globalization, allowing for the rapid dissemination and application of knowledge worldwide.