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The knowledge economy is one where developments and achievements arise directly from cooperative connectional development between key community institutions: business, education, and government. The idea of the 'knowledge economy' is now widely used to get the indication that there has been an ultimate transformation in the nature of economic activity and the processes of wealth generation in advanced economies. The economic foundations of different nations progressed from agricultural to industrial and then to knowledge and the source of wealth has moved from land to machinery and now to intellectual capital. The usage of knowledge has been increasing progressively since the Industrial Revolution and the beginning of knowledge base economies has profound implications for the determinants of growth.