World Library  
Flag as Inappropriate
Email this Article

Quaternary sector of the economy

Article Id: WHEBN0000602616
Reproduction Date:

Title: Quaternary sector of the economy  
Author: World Heritage Encyclopedia
Language: English
Subject: Economic sectors, Economic sector, Primary sector of the economy, Tertiary sector of the economy, Three-sector theory
Collection: Economic Sectors, Industrial Organization, National Accounts
Publisher: World Heritage Encyclopedia
Publication
Date:
 

Quaternary sector of the economy

The quaternary sector of the economy is a way to describe a knowledge-based part of the economy which typically includes services such as information generation and sharing, information technology, consultation, education, research and development, financial planning, and other knowledge-based services.[1][2] The term has been used to describe media, culture, and government.[3]

The quaternary sector is based on knowledge and skill. It consists of intellectual industries providing information services, such as computing and ICT (information and communication technologies), consultancy (offering advice to businesses) and R&D (research, particularly in scientific fields). According to some definitions, the quaternary sector includes other pure services, such as the entertainment industry.

Colin Clark's sector model of an economy undergoing technological change. In later stages, the Quaternary sector of the economy grows - shown in red.

"Quaternary sector" is a further delineation of the three-sector hypothesis of industry in the sense that the quarternary sector refers to a part of the third or tertiary sector along with the quinary economic sector. It has been argued that intellectual services is distinct enough to warrant a separate sector and not be considered merely as a part of the tertiary sector. This sector evolves in well developed countries and requires a highly educated workforce.[3]

Between them, the tertiary and quaternary sectors are the largest part of the UK economy, employing 76% of the workforce. The number of people who are earning their living in these activities is increasing, as they make human life easier and more comfortable.

Companies invest in the quaternary sector to promote further expansion. It is seen as a way to generate higher margins or returns on investment.[4] Research will be directed into cutting costs, tapping into markets, producing innovative ideas, new production methods and methods of manufacture, amongst others. To many industries, such as the pharmaceutical industry, the sector is the most valuable because it creates future branded products from which the company will profit.


References

  1. ^ Tor Selstad (1990). "The rise of the quarternary sector. The regional dimension of knowledge-based services in Norway, 1970-1985". informaworld. Retrieved 2010-06-17. ... knowledge-based services ... 
  2. ^ Peter Busch (1967). "Tacit Knowledge in Organizational Learning". Tacit Knowledge in Organizational Learning. Retrieved 2010-06-17. see page .. The quarternary sector of industry is the sector of industry that involves the intellectual services. That is research, development, and information. 
  3. ^ a b "ICTs, industry and the new teacher model". Asian Correspondent. 2010-06-17. Retrieved 2010-06-17. In Australia, the service sector accounts for 70 per cent of the country’s economic activity. Within the service sector, however, more intellectual activities such as government, education, culture and media, can be further defined as the ‘quarternary’ sector of economy. These activities are typically not measured in monetary value but they significantly contribute to the economy. 
  4. ^ press release (Feb 19, 2010). "TEXT-Fitch: Investment to increase in India's healthcare sector". Reuters. Retrieved 2010-06-17. Fitch notes that newly commissioned hospitals and improved occupancy rates at existing ones will drive revenue growth. Better capacity utilisation and increased focus on higher-margin tertiary and quarternary healthcare services are expected to boost profitability, and improve cash flow from operations (CFO). 

External links

  • Zoltan Kenessey, U.S.  


This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 


Copyright © World Library Foundation. All rights reserved. eBooks from Project Gutenberg are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.