The knowledge-based economy, also known as the "new economy," post-industrial economy" or simply "knowledge economy," is used as a designation of the new economic order which the world entered at the turn of the century. In this new economy, which is of a far more global nature, technology, information and knowledge replace both capital end energy as the key factors in production and the creation of wealth.

The Knowledge-based Economy sector of the CDEM works closely with Manitoba's bilingual municipalities to ensure that they assume their rightful place in the new economy by helping them to become more innovative, competitive and efficient in their economic activities. The three priority areas upon which are focused the sector's activities are: 1) awareness of E-business processes and the integration of these in small to medium size businesses; 2) the development of the full potential of the use of broadband/ High Speed Internet services and 3) the deployment of learning communities and best practices within the network.