Final answer:
Knowledge economies are characterized by production based on new ideas and technologies, and services requiring higher education. They mainly involve the tertiary and quaternary sectors, which focus on services and the generation of ideas, in contrast to the primary focus of developing economies or the manufacturing focus of industrialized economies.
Step-by-step explanation:
The economies where the major forces for jobs, revenues, and taxes come from high-value-added production based on new ideas and technologies and from professional services based on higher education are known as Knowledge economies. These economies focus on the tertiary and quaternary sectors, which include services like healthcare, education, and legal and financial services, and also produce ideas through research that leads to new technologies, information management, and advancements in the arts and education.
In contrast, developing economies often rely on the primary sector, which includes agriculture and extraction of raw materials, and as they develop, they transition into the secondary sector involving manufacturing. Industrialized economies may have a strong secondary sector but are also characterized by robust tertiary services. However, the distinctive feature of Knowledge economies is their reliance on intellectual capabilities rather than physical inputs or manufacturing alone.