According to WEF’s classification:
- Factor-driven economies are the least developed. They are dominated by subsistence agriculture and extraction businesses, with a heavy reliance on (unskilled) labour and natural resources;
- Efficiency-driven economies are increasingly competitive, with more-efficient production processes and increased product quality;
- Innovation-driven economies are the most developed. In this phase, businesses are more knowledge-intensive, and the service sector expands.
GEM groups economies in transition from factor- to efficiency-driven with the factor-driven economies, while those in transition from efficiency- to innovation-driven have been included in the efficiency-driven category.