This paper explains how knowledge management plays an important part in economic development strategy. The shift to an information economy is creating new challenges for economic development. As knowledge and information play an increasingly important role in economic activity, the needs of businesses have changed. The tools and techniques of Knowledge Management can help economic development practitioners face this new environment. Economic development organizations can use KM tools to enhance the external communications of local companies, including for e-commerce and marketing. They can also promote the use of KM tools and techniques to help local businesses capture and utilize their knowledge and information assets.
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