1. What is Knowledge Economy?
2. Why is KE so important?

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1. Q: What is Knowledge Economy?
   
   A: This new economic approach promotes knowledge as a key resource in the production process, along with capital, labor, land, and other factors in determining economic growth. Many economists now argue that it has become the most important factor of production, as information and communications technologies speed up access and return to knowledge.

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2. Q: Why is KE so important?
   
   A: The benefits of KE are: improved quality, reduced cost, better adaptation to consumer needs, as well as totally new products. On the downside, it is the increasing digital, scientific and technological divide between the more developed countries and less developed countries, which are not adequately participating in the global network. The challenge is to find ways to remove the constraints to such participation by developing countries and by less developed regions within countries.

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