In a production economy, value creation depends on land, labor and capital. In a knowledge economy, value creation depends mainly on the ideas and innovations to be found in people’s heads. Those ideas cannot be forcibly extracted. All one can do is mobilize collective intelligence and knowledge. If knowing how to produce and sell has become a basic necessity, it no longer constitutes a sufficiently differentiating factor in international competition. In the past, enterprises were industrial and commercial; in the future, they will increasingly have to be intelligent.
Via Howard Rheingold