The knowledge economy has become a common phrase in discussions of work and management. The shift from jobs based on manual labour towards those based on knowledge is having a fundamental impact on the nature of work. Yet management of work has only recently started to reflect the change.

The World Bank defines the knowledge economy as “the use of knowledge to produce economic benefits”. In practice, new technologies are as important as human brainpower in creating wealth. The tools of the knowledge economy include empowerment, flexible working, outsourcing, contract manufacturing, innovation, research and development, globalisation, education and skills. This contrasts with labour, land and capital as the traditional factors of production.