But we are material beings and cannot live on ideas, however great the knowledge economy may sound. Morever, we have always lived in a knowledge economy in the sense that it has always been a command over superior knowledge, rather than the physical nature of activities, that has ultimately decided which country is rich or poor. [...]
his argument here is that countries need to shift away from services, which are 1) not tradeable and 2) often highly dependent and even parasitic on the manufacturing sector, and instead invest more in infrastructure (more basic than the Internet) and industry