| Economic sectors |
|---|
| Three-sector hypothesis |
| Primary sector: raw materials Secondary sector: manufacturing Tertiary sector: services |
| Theorists |
| Colin Clark · Jean Fourastié |
| Additional sectors |
| Quaternary sector · Quinary sector |
| Sectors by ownership |
| Business sector · Private sector · Public sector · Voluntary sector |
The quaternary sector of the economy is a way to describe a knowledge-based part of the economy which typically includes services such as information generation and sharing, information technology, consultation, education, research and development, financial planning, and other knowledge-based services.[1][2][3] The term has been used to describe media, culture, and government.[4] The term is a further delineation of the three-sector hypothesis of industry in the sense that the quaternary sector refers to a part of the third or tertiary sector along with the quinary economic sector. It has been argued that intellectual services is distinct enough to warrant a separate sector and not be considered merely as a part of the tertiary sector. This sector evolves in well developed countries and requires a highly educated workforce.[4]
In the quaternary sector, companies invest to ensure further expansion. It is seen as a way to generate higher margins or returns on investment.[5] Research will be directed into cutting costs, tapping into markets, producing innovative ideas, new production methods and methods of manufacture, amongst others. To many industries, such as the pharmaceutical industry, the sector is the most valuable because it creates future branded products from which the company will profit.
According to some definitions, the quaternary sector includes other pure services, such as the entertainment industry.
The quaternary sector consists of those industries providing information services, such as computing and ICT (information and communication technologies), consultancy (offering advice to businesses) and R&D (research, particularly in scientific fields).
The quaternary sector is sometimes included with the tertiary sector, as they are both service sectors. Between them, the tertiary and quaternary sectors are the largest part of the UK economy, employing 76% of the workforce.
References [edit]
- ^ Tor Selstad (1990). "The rise of the quaternary sector. The regional dimension of knowledge-based services in Norway, 1970-1985". informaworld. Retrieved 2010-06-17. "... knowledge-based services ..."
- ^ Peter Busch (1967). "Tacit Knowledge in Organizational Learning". Tacit Knowledge in Organizational Learning. Retrieved 2010-06-17. "see page .. The quaternary sector of industry is the sector of industry that involves the intellectual services. That is research, development, and information."
- ^ "What are some example of jobs in the Quaternary Industry?". Yahoo! Answers. 2010-06-17. Retrieved 2010-06-17. "The quaternary sector consists of those industries providing information services, such as computing and ICT or information and communication technologies, consultancy, such as offering advice to businesses and research and development (R&D) in scientific fields. The quaternary sector can be seen as the sector in which companies invest in order to ensure further expansion. Some examples could be: background investigators, financial planners or consultants, real estate appraisers, information technology consultants who can set-up a computer network for your business and market research consultants who determine if a product in development will sell and make a profit."
- ^ a b "ICTs, industry and the new teacher model". Asian Correspondent. 2010-06-17. Retrieved 2010-06-17. "In Australia, the service sector accounts for 70 per cent of the country’s economic activity. Within the service sector, however, more intellectual activities such as government, education, culture and media, can be further defined as the ‘quaternary’ sector of economy. These activities are typically not measured in monetary value but they significantly contribute to the economy."
- ^ press release (Feb 19 2010). "TEXT-Fitch: Investment to increase in India's healthcare sector". Reuters. Retrieved 2010-06-17. "Fitch notes that newly commissioned hospitals and improved occupancy rates at existing ones will drive revenue growth. Better capacity utilisation and increased focus on higher-margin tertiary and quaternary healthcare services are expected to boost profitability, and improve cash flow from operations (CFO)."
External links [edit]
- Zoltan Kenessey, U.S. Federal Reserve Board. "THE PRIMARY, SECONDARY, TERTIARY AND QUATERNARY SECTORS OF THE ECONOMY" (PDF). Review of Income and Wealth. Retrieved 2009-03-13.
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