In the wake of digitalization reaching its peak, people are engaging extensively in cyberspace. For half of the world's population, the internet has become an essential part of daily life. So, a new economic system, known as the knowledge economy, is at the threshold. Discussions of the knowledge economy were initiated in the early 1970s, and Daniel Bell is a pioneer in these studies. Many sociologists described it as the globalized world's fiscal system.

HISTORY OF THE IDEA

In 1973, Daniel Bell brought this idea in his new book “The coming of post-industrial society: a venture in social forecasting”.  Following this, a number of sociologists and economists started to scrutinize this topic and share their theories. Mr Bell brought to the fore many definitions of this system. He defined it as a service-based economy led by information, and more than a definition, he made observations about the formation of post-industrial society. He included in the book three processes for its formation. One of those is the comprehensive change of society from industry or construction to IT or service sector. The second is the growth of new industries based on science and technology. The third is the growth of a separate class based on neo-technology. These are particularities of its formation process.

                                       Manuel Castells, a professor at Oberta University in Barcelona, put forward a new view about the knowledge economy through his research on information society, communication technology and globalization. He observed the economic reorganizing occurring through information technology. Consequently, there occur great differences between urban and rural areas. As it were, urban areas will be inclined to IT and service sectors devoid of industrial sectors. After consistent research, Mr. Castells published his thesis in 1989 with the title Information City.

In 1991, Andrew Feinberg, a professor at Simon Fraser University, stated that the knowledge economy was an upgraded version of capitalism. But, little was noticed. Mr. Castells depicted it as a global economic system of an upcoming globalized world in his book The Information Age: The Economy, Society, and Culture in the late 1990s. This book was published as three volumes with a specific title for each. The first volume The Rise of Network Society was 1996. The second and third volumes were published in the following two years. Those two works were Identity Power and End of Millennium. Mr. Castells’ works were the ending point of these discussions. The first decade of the 21st century saw the implementation of this system. It came into existence through the installation of IT firms and service industries.

ESSENTIALS OF THIS SYSTEM 

              In total, the knowledge economy is the production of knowledge along with its consumption and handover. In a knowledge economy, much of the workforce is indulged not in the physical production or distribution of material goods. In this economy, we can find unheard services and occupations which are unavailable in the industrial economy. In this system, we need a lot of experience in the computer field rather than knowledge. IT and service firms would rather have experience than knowledge of the field. The verdant digital world is developing day by day. Therefore, the eventuality of prediction is diminishing