Hack:
What's Three-Tier Economy

According to Alderfer's ERG theory, every one has three levels of bottom-up needs, namely, existence needs, relatedness needs, and growth needs.

How to meet peoples’ three levels of bottom-up needs from the perspective of economy system? I think the best way to do it is three-tier economy.

In my opinion so-called economy, to put it simply, should mainly include both regarding people’s needs and offering related products and services (including intangible knowledge and information) to constantly satisfy them.

What are three tiers of economies? They are respectively manufacturing economy, service economy, and innovation economy.

What is three-tier economy? It is the integration of three tiers of economies.

At the bottom of three-tier economy is manufacturing economy, corresponding to the level of the economic development in which meeting people’s existence needs is the most important task for the whole society. At that time, the provision of basic necessities can not efficiently meet people’s existence needs.  Meanwhile, companies’ main tasks are to rapidly improve productivity and increase outputs by applying mass production.

In the middle of three-tier economy is service economy, corresponding to the level of the economic development in which meeting people’s relatedness needs is the most important task for the whole society. At that time, there already is an obviously improvement in the provision of basic necessities. Meanwhile, companies should closely cooperate or have a good relationship with various stakeholders, and try to increase its service capacities. So, a wide variety of service industries, not-for-profit organizations, and Non-Governmental Organizations would rapidly constantly emerge.

On the top of three-tier economy is innovation economy, corresponding to the level of the economic development in which meeting people’s growth needs is the most important task for the whole society. At that time, societal material basis is further solidified. Those sidelines, in the traditional sense, such as culture, education, healthcare services, sports, entertainment, tourism, invention, innovation, and knowledge productions, will become the main engine to promote economic growth of society.

As with three-tier management, three tiers of economies are also an indivisible whole. One of three tiers of economies alone—whether manufacturing economy, or service economy, or innovation economy—will not be able to bring high degree of satisfaction on Alderfer's three levels of needs to people. Only the smooth integration of three tiers of economies can do so.