The purpose of this paper is to fill part of the gap identified in the quote above. The main aim is to explore testable definitions. In other words, do they allow us to measure in a robust way through national and international statistical and survey data the knowledge economy, the knowledge workforce and the knowledge-based firm?

This in turn allows us to answer key questions, such as: how big is the knowledge economy; where and how fast is it growing; what are the practical and policy implications for firms and government. It will allow us to test out some of the claims made for the knowledge economy, for example, that investment in knowledge is overtaking investment in physical capital.