The Knowledge Economy is a term used to refer to an economic system that is based on producing, exchanging, and advancing knowledge. The Knowledge Economy is driven by an information-based society where knowledge and technology are increasingly becoming integral components for economic success. Investment in the Knowledge Economy focuses on sectors related to IT, high tech, and innovation and is often supported by public policy initiatives such as increased research and development funding. This type of investment has the potential to provide long-term capital growth and can add value to portfolios through its diversifying nature.
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