SecondaryThe production of tangible goods from raw materials. This includes any type of product production including manufacturing and craft.
TertiaryThe creation of intangible value. This includes a broad range of industries that mostly produce services such as the transportation, healthcare, finance, information technology, education, travel, hospitality, consulting, professional services, media and entertainment industries. In an advanced economy, the vast majority of production and employment is in the tertiary sector. It is characteristic of developing nations to have a high percentage of employment in the primary and secondary sectors.
Quaternary SectorSome economists propose that the knowledge economy be separated out from other elements of the tertiary sector into a forth sector, or quaternary sector. This creates a distinction between services that are knowledge-intensive such as information technology and those that are knowledge-light such as the restaurant industry.
Quinary SectorA theoretical sector that includes decision makers, strategy planners and other individuals who control and direct large scale resources. This is a questionable idea as every sector of the economy involves decision making and strategy. The theory is that executives and other high level decision makers such as politicians add extreme value beyond that created by the knowledge economy with their magical insight and creativity.
Public SectorIn some cases, sectors are defined by ownership into the public, private and voluntary sectors. The public sector includes any value created by a government such as public education.
Private SectorValue created by a privately owned business or organization such as an airline that is owned by shareholders or a restaurant owned by a family.
Voluntary SectorValue created voluntarily without an ownership structure such as the value created by housework or caring for children and the elderly in the home.
|Overview: Economic Sector|
A level of value creation in an economy.