The effects on the developing countries from the developed countries have continued to restrain the developing countries from producing knowledge economy products, which widened the gap between developed and developing countries. Knowledge has been developed all over the world, and Egypt has the right land for development, and the Egyptian state is distinguished by its population wealth that allows manpower and specialization in work to produce highly specialized, highly knowledgeable products. The research has been divided into four axes, The first axis: The theoretical framework of the knowledge economy, second axis: characteristics of the knowledge economy, the third axis: the theories that explain the knowledge economy and its relationship to economic growth, fourth axis: the theoretical frame work for the relationship between the knowledge economy and economic development in Egypt.
We argued that there is a positive relationship between development and knowledge economy, but the Egyptian state alone cannot move forward with steady steps towards the knowledge economy and industrialization based on the knowledge economy, the secret is in cooperation.