We define the knowledge economy as production and services based on knowledge-intensive activities that contribute to an accelerated pace of technical and scientific advance, as well as rapid obsolescence. The key component of a knowledge economy is a greater reliance on intellectual capabilities than on physical inputs or natural resources.

Walter W. Powell and Kaisa Snellman. "The knowledge economy." Annu. Rev. Sociol. 30 (2004): 199-220.