We explain what the quaternary sector is, its characteristics, importance and examples. Also, what are the other economic sectors.
What is the quaternary sector?
The quaternary sector of the economy is the fourth of the traditional divisions of the productive circuit (that is, of economic activity), and it includes activities and services based on the accumulation of knowledge and, therefore, impossible to mechanize. In general terms, it is called the “research sector”.
The quaternary sector It is one of the key sectors in technological and industrial innovation this is because the application of science and technology to the business world has allowed the creation of an infinite number of new marketable goods and services, as well as the improvement of existing ones. Therefore, this sector is home to hyper-specialized professional workers and often requires large budgetary investments.
For these reasons, the quaternary sector is probably the one that has grown the most in the last century of human history, although it continues to be the majority and predominant in the nations of the so-called “first world”, in which the level of industrial and technological development is high. , and in which there is the high income that this type of investment requires.
Characteristics of the quaternary sector
The quaternary sector of the economy is characterized by the following:
- It is dedicated to innovation and the accumulation of knowledge which has a direct impact on the development of new technologies and new possibilities for transforming matter to satisfy human needs (that is, new types of goods and services).
- Requires hyper-skilled workers and with a high level of professionalization (postgraduate degrees and work experience), which means that salaries are usually higher than average.
- It is a sector that is transversally linked to the others in the economic circuit that is, it intervenes in the functioning of other sectors to provide technological capital that improves the production of each one, and in turn requires inputs from them to feed research.
- Their tasks are intellectual in nature, they cannot be mechanized or automated although they do receive feedback from the technology it invents to enhance research. For example, if a new type of microscope is invented, this tool will be used to better study certain types of bacteria used in food fermentation.
- It usually predominates in countries with a high level of industrialization and technological development.
Importance of the quaternary sector
The importance of the quaternary sector is increasing in a world dominated by technological advancement. Innovation in medical, biological or industrial applications not only has a notable impact on people's quality of life but also allows the creation or strengthening of market niches.
As an example, just look at what happened in the late 1990s with the appearance of cell phones (even though at that time they were much more primitive than contemporary phones). Innovation allowed the improvement and lowering of the costs of this technology, which was made available to the entire world. If this had not happened, today we would not have the immensity of remote consumption applications and platforms that characterize the second decade of the 21st century.
Examples from the quaternary sector
Some examples of economic activities in the quaternary sector are:
- The computer and ICT industry (information and telecommunications technologies).
- The biomedical and genetic editing industry for medicinal purposes.
- Research in robotics and artificial intelligence.
- The aerospace and tourist travel industry to space.
- Pharmaceutical and biochemical research.
Other economic sectors
In addition to the quaternary sector, the economy includes the following sectors:
- Primary sector. Also called the first sector or productive sector, it is responsible for extracting and processing raw materials from nature so that it can feed the secondary sector, that is, so that it can be transformed into consumer goods. For example: A mining company.
- Secondary sector. Also called the second sector or manufacturing sector, it is responsible for transforming the raw materials received from the primary sector into manufactured or consumer goods, that is, into products ready for the consumer to obtain and use, or into intermediate goods that feed other manufacturing industries. For example: A company that makes nails from iron sheets.
- Tertiary sector. Also called the third sector or service sector, it is responsible for providing other sectors and consumers with some type of profitable service of a defined duration, whether maintenance, information, customer service, among others. For example: Transportation companies or internet providers.
- Quinary sector. Also called the fifth sector or non-profit sector, it is responsible for providing society with non-profitable or non-capitalization services that are required to solve the basic problems of society, such as the police, public institutions, firefighters. , among others.
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References
- “Quaternary sector” in Wikipedia.
- “The quaternary sector of the economy” (video) in Educatina.
- “What are the economic sectors into which the activity is divided?” in Creditea.
- “Characteristics of Industry” on BBC Bitesize.
