One indication of the emergence of knowledge economies is provided by the chart below, which illustrates how manufactured products have been more and more knowledge-intensive over time.
The chart shows the increasing amount of R&D spent per product commercialized over time, captured in the concept of “R&D intensity.” Over the past several decades, the amount of R&D spent on the development of new products has risen dramatically. This suggests that the cost of innovation has risen, as well as the value of protecting the intangibles that underlie every commercial product.
R&D-Intensity in Manufactured Exports, 1970-95 Figure Source: Sheehan, P. and Tegart, G. (1998) Working for the Future: Technology and Employment in the Global Knowledge Economy
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