The main business activities of the sector include: This new knowledge is then transferred from universities to economics – translating theory into practice. Zhongguancun in Beijing`s Haidian district of China, is also a place where the Quaternary sector is widely present. Zhongguancun is home to some of Asia`s leading universities such as Tsinghua University, Peking University and Renmin University, as well as research centers of IT companies such as Tencent or Baidu. Zhongguancun is therefore called China`s Silicon Valley. The quaternary sector is an improved form of the tertiary sector as it includes services related to the knowledge sector, including the demand for information-based services such as consulting tax managers, statisticians and software developers. The services involved in this type of economy are outsourced in various forms such as medical services, elementary and university classrooms, theaters and brokerage companies. It also includes intellectual activities and services such as research and development (R&D), media, culture and information and communication technologies (ICT). Workers who voluntarily engage in this sector tend to be well educated, and people often earn well by participating in this industry. IT companies such as Google or Facebook and pharmaceutical companies such as Pfizer, Merck or Astra Zeneca all belong to the quaternary sector. They invest heavily in research and development (R&D) to develop innovative products, develop new production methods or improve productivity and efficiency to increase their competitive advantage through innovation. They all always want to be one step ahead by inventing new means of communication or curing diseases. Primary sector operations mainly provide raw materials for secondary sector operations – the conversion of raw materials into products. Sometimes companies in the primary sector also sell raw materials as finished products directly to end customers – we can buy raw vegetables, fruit and fish directly from farmers.
In financial markets, economic sectors are subdivided into subsectors called investment sectors. Investment sectors represent a group of companies with similar business activities. Investment sectors include technology, energy and financial services. Our editors will review what you have submitted and decide if the article needs to be revised. In financial markets, there are subsectors of economic sectors that contain clusters of companies engaged in similar business activities such as financial services or technology. Sector rotation is the process of transferring investment from one sector to another. The secondary sector includes processing, manufacturing and construction enterprises. The secondary sector produces goods from the natural products of the primary sector. The secondary sector includes the following business activities: The tertiary sector is the most important sector in the United States, as the service sector accounts for the largest share of economic activity.
Examples of the quaternary sector are information and communication technologies (ICT), research and development (R&D), management consulting and scientific research. While there is some debate about the actual number of sectors that represent doing business in an economy, sectors are generally divided into four main categories. Please note, however, that there may also be sub-sectors in each of the four main sectors listed below. The tertiary and quaternary sectors account for the largest share of the UK economy, accounting for 76% of the workforce. For example, companies in the oil and gas industry such as Exxon and Chevron are competitors. The same companies are also in the primary sector, as they are both active in the extraction of natural resources. However, Exxon or Chevron would probably not compete with companies engaged in agriculture, even if they are in the primary sector. If the purchase of commodities such as copper or crude oil increases sharply, it may indicate that the economy is expanding. In other words, in an expanding economy, businesses and consumers tend to consume more raw materials and energy as consumer and business spending increases. Companies operating in the tertiary sector are active in the service sector.
They specialize in providing services to the general population (end-users or businesses) at local, regional, national or global level. For those who want to invest in a specific sector, there are exchange-traded funds (ETFs), called sector ETFs. These funds contain a basket of stocks or securities within a particular industry or sector. For example, the energy sector, particularly the oil and gas industry, is a large industry that attracts specialized investment funds. The quaternary sector includes companies engaged in intellectual activities and aspirations. The quaternary sector typically includes intellectual services such as technological progress and innovation. Research and development leading to improvements in processes such as manufacturing would fall within this sector. The occupations of people working in this sector are generally referred to as «gold-collar occupations» because the services included in the sector focus on interpreting existing or new ideas, evaluating new technologies, and creating services. It is also one of the parts of the tertiary sector, but it includes highly paid professionals, researchers and civil servants. People are labeled with high positions and powers, and those who make important decisions that are particularly profound in the world around them often fall into this category. Sometimes this sector is included in the tertiary sector, as both are service sectors. Some authors separate the two sectors because of the important contribution of the quaternary sector to economic development.
In developed countries, the tertiary and quaternary sectors account for the bulk of economic output and employment.