Knowledge
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Knowledge is a game mechanic that allows settlements to gain upgrades. There are roughly 26 categories of upgrades: general farming, five separate categories for increasing the efficiency of specific farm types (cotton, fruit, grain, mushrooms and vegetables), fishing, breeding, combat training (which further branches into combat defense and offense), ruling (which controls happiness), administration, knowledge production, civics, services, spirituality, warehouse storage spoiling speed and carry capacity, mining, refining, bread production, drink production, metal smelting, foreign relations and trading, woodcutter, workshops, clothes, carpentry, pottery and smithing.
There are roughly 40 buildings (including decorations) that must be unlocked via knowledge: school, university, speaker, stage, guardpost, dungeon, scaffolds, slaver, arena, court, lavatory, flat house, canteen, tavern, all of the nurseries, bathhouse, chamber, graveyard, crypt, temples, transport, gem mine, sithilon mine, bakery, brewery, metal smelter, papermaker, pottery, masonry, smithy, and the jeweler. The three decorations that can be unlocked are trees, statues and pillars.
Choosing upgrades require technology points (also shortened to "tech points" in-game), which are gained by scribes working in a library or administration building. Technology points can be gained faster by having bigger libraries and having more scribes working at once. These points can even be used to better accumulate even more points at a faster rate.
To get better and better upgrades, the previous one(s) must be unlocked first. Each upgrade is usually more expensive than the last, meaning that to manage the increasing need for more technology points, more and larger libraries will need to be built to sustain that. Selecting a technology choice before purchasing the previous ones is possible, but will require the player to spend all knowledge points up front. For example: if there are farming upgrade choices that come in the prices of 100, 250, 315, 400 and 550 respectively; assuming all of them are previously not unlocked, selecting the one that's 315 will cost 665, which is the price of the one selected and the two previous ones all combined.
Gallery
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The entire knowledge tree, where points can be spent. (Click to see the image more clearly.)