A vague term referring to a economy whose chief characteristic is the trade or value of information instead of materials (such as gold, iron, or fish) or activities (such as manufacturing or agriculture) to create economic growth and benefits. There is no standard definition of information nor any measures of its value. Thus, it’s difficult to account for or value its effects on an economy. Non-physical products and services (such as software and telecommunications) are often considered examples of information-based products.
The Information Economy, also called the knowledge economy, is used to differentiate economies driven heavily on knowledge work instead of manufacturing, agriculture, or services. However, it’s unlikely that today’s version of a service economy could exist without vital information exchange and networks characteristic of an information economy.