You don’t need to do knowledge work to advance the state of the art. You could be working in a shoe factory and discover a better way to tie your shoes.
Your math assumes each person has exactly one thing they do in life. The shoe factory worker could also be a gardener. He might not make any advancements in gardening, but his contribution means that if you add up all the fields of specialization the sum is greater than the population of humans. Take 1% of that sum and it’s greater than 1% of humans. 1% of people in a specialization is not the same as 1% of specialists. In fact, I would say it’s a much higher proportion of specialists making contributions (especially through collaboration).
Oh, and don’t get caught up on the 1% number. I used it as shorthand for whatever small number it is. Maybe it’s only 10 people in some hyper-specialized field. But that doesn’t matter. Some other field may have thousands of contributors. You don’t have to be a specialist in a field to make a contribution to that field, for example: glassmakers advanced the science of astronomy by making the telescope possible.