Quaternary sector of the economy
The quaternary sector is the label used to describe a knowledge-based part of the economy, which typically includes knowledge-oriented economic sectors such as information technology; media; research and development; information-based services such as information-generation and information-sharing; and knowledge-based services such as consultation, education, financial planning, blogging, and designing.
The quaternary sector is based on pure knowledge and skill of a person. It consists of intellectual industries providing information services, such as computing and ICT, consultancy and R&D. According to some definitions, the Quaternary sector includes other pure services, such as the entertainment industry, and the term has been used to describe media, culture, and government.
"Quaternary sector" 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. Intellectual services are sometimes regarded as 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 where the primary and secondary sectors are a minority of the economy, and requires a highly educated workforce.
Between them, the tertiary and quaternary sectors form the largest part of the UK economy, employing 76% of the workforce. The number of people who earn their living in these activities is increasing.
Companies invest in the Quaternary sector to promote further expansion. It is seen as a way to generate higher margins or returns on investment.
Research will be directed into cutting costs, tapping into markets, producing innovative ideas, new production methods and methods of manufacture, among others. To many industries, such as the pharmaceutical industry, the sector is the most valuable because it creates future secondary-sector branded products from which companies may profit.
