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This paper analyses the definition of the knowledge economy,compares the knowledge economy with agricultural economy and industrial economy,and llustrates the characteristic change of the knowledge economy in four respects of mode of production,working mode,the structure of labor force and focal point of the management.According to contingent theory of the management,it probes into the corresponding innovation in business administration from such angles as management idea,competition mode,the management mode of enterprises,the management information system and corporate culture.