Extension of the Descriptive Framework of Economic Theories by the Introduction of Knowledge Functions

Knowledge is treated as a fundamental cause of economic success. Up to now we have been lacking quantities which would allow knowledge to be taken into consideration in mathematical economic theories. In order to remedy this, knowledge functions are introduced here from which a whole series of quantifiable knowledge characteristics can be derived. On the microeconomic level, the example of a company is used to illustrate the quantitative new insights which can be gained into the knowledge structures of companies when each employee is allocated his own individual knowledge function. On the macroeconomic level, the importance of a wide educational basis of the economic individuals for the competitiveness of a market economy can be proven. The relationship between national income and innovation can be registered and expressed in quantitative terms