Final answer:
Knowledge-intensive firms are companies that rely mainly on intellectual capital for their value, with features such as a highly skilled workforce and a focus on R&D. These firms are characterized by innovation and operate in industries where advanced skills are crucial.
Step-by-step explanation:
Knowledge-intensive firms are businesses where the primary value and competitive advantage come from their intellectual capital rather than physical assets. The main answer is that these firms rely heavily on professional knowledge and expertise to deliver goods and services. Examples include consulting firms, software companies, and biotech entities.There are several features unique to knowledge-intensive firms. They often have a high proportion of qualified professionals, emphasize research and development, have a flat organizational structure to encourage innovation, and operate in markets where advanced skills and competencies are a significant driver of performance.In conclusion, knowledge-intensive firms are integral to the modern economy, driving innovation and competitive advantage through their focus on intellectual capital and specialized expertise.