Exemplar Economy

Leading Sector

Production Function

Accreting Factors of Production

Spain

16^th, 17^th to mid-18^th centuries

Primary

farming, fishing, forestry & mining

Y = f (K)

K = gold, silver, land & slave labour

England

late 18^th to mid-19^th centuries

Secondary

manufacturing

Y = f (K, L)

K = manufacturing plant & equipment

L = division & specialization of free labourers

U.S.A.

late 19^th to mid-20^th century

Tertiary Services

communication, energy, financial, transportation

Y = f (K, L, T)

K = private financial capital & limited liability corp.

L = organized labour

T = disembodied, endogenous

Japan

mid- to late 20^th century

Government

Y = f (K, L, T) ^G

K = public & private capitalization

L = automated labour

T = embodied, exogenous

G = government coordinates public & private sectors through macro- & micro-economic or industrial policies

Global

late 20^th & early

21^st centuries

Quaternary

Marketable Knowledge = Intellectual Property Rights

 Copyright, Patent, Registered Industrial Design, Trademark, ‘Know-How’, Trade Secrets, Sui Generis Rights

Y = f (K, L, T ^{P, O, D}) ^G

K = knowledge capital

L = knowledge workers

P = physical technology

O = organizational technology

D = design technology

G = national innovation system to ensure rapid commercial exploitation of  academic/pure research