The quaternary sector of the economy is based upon the economic activity that is associated with either the intellectual or
knowledge-based economy
The knowledge economy (or the knowledge-based economy) is an economic system in which the production of goods and services is based principally on knowledge-intensive activities that contribute to advancement in technical and scientific inno ...
. This consists of
information technology
Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology syste ...
;
media
Media may refer to:
Communication
* Media (communication), tools used to deliver information or data
** Advertising media, various media, content, buying and placement for advertising
** Broadcast media, communications delivered over mass ...
;
research and development
Research and development (R&D or R+D), known in Europe as research and technological development (RTD), is the set of innovative activities undertaken by corporations or governments in developing new services or products, and improving existi ...
; information-based services such as
information
Information is an abstract concept that refers to that which has the power to inform. At the most fundamental level information pertains to the interpretation of that which may be sensed. Any natural process that is not completely random, ...
-generation and information-sharing; and knowledge-based services such as
consultation
Consultation may refer to:
* Public consultation, a process by which the public's input on matters affecting them is sought
* Consultation (Texas), the 1835 Texas meeting of colonists on a proposed rebellion against the Republic of Mexico
* Consu ...
,
education
Education is a purposeful activity directed at achieving certain aims, such as transmitting knowledge or fostering skills and character traits. These aims may include the development of understanding, rationality, kindness, and honesty. V ...
,
financial planning
In general usage, a financial plan is a comprehensive evaluation of an individual's current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans. This often includes a bud ...
,
blogging
A blog (a truncation of "weblog") is a discussion or informational website published on the World Wide Web consisting of discrete, often informal diary-style text entries (posts). Posts are typically displayed in reverse chronological order ...
, and
designing
A design is a plan or specification for the construction of an object or system or for the implementation of an activity or process or the result of that plan or specification in the form of a prototype, product, or process. The verb ''to design'' ...
.
[
]
Other definitions describe the quaternary sector as pure services.
[
] This may consist of the
entertainment industry
Entertainment is a form of activity that holds the attention and interest of an audience or gives pleasure and delight. It can be an idea or a task, but is more likely to be one of the activities or events that have developed over thousand ...
, to describe
media
Media may refer to:
Communication
* Media (communication), tools used to deliver information or data
** Advertising media, various media, content, buying and placement for advertising
** Broadcast media, communications delivered over mass ...
,
culture
Culture () is an umbrella term which encompasses the social behavior, institutions, and norms found in human societies, as well as the knowledge, beliefs, arts, laws, customs, capabilities, and habits of the individuals in these groups.Ty ...
, and
government
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government i ...
. This may be classified into an additional quinary sector.
The term reflects the analysis of the
three-sector model
The three-sector model in economics divides economies into three sectors of activity: extraction of raw materials ( primary), manufacturing (secondary), and service industries which exist to facilitate the transport, distribution and sale o ...
of the economy, in which the primary sector produces raw materials used by the secondary sector to produce goods, which are then distributed to consumers by the tertiary sector.
Contrary to this implied sequence, however, the quaternary sector does not process the output of the tertiary sector. It has only limited and indirect connections to the
industrial economy
In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. Industrial organization adds real-world complications to the perf ...
characterized by the three-sector model.
In a modern economy, the generation, analysis and dissemination of information is important enough to warrant a separate sector instead of being 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.
[
]
The tertiary and quaternary sectors form the largest part of the
UK economy
The economy of the United Kingdom is a highly developed social market and market-orientated economy. It is the sixth-largest national economy in the world measured by nominal gross domestic product (GDP), ninth-largest by purchasing power p ...
, employing 76% of the workforce.
See also
*
Indigo Era The Indigo Era (or Indigo economies) is a concept publicized by businessman Mikhail Fridman, describing what he views as an emerging new era of economies and economics based on ideas, innovation, and creativity, replacing those based on the possessi ...
References
{{Industries
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National accounts