Are Transition Countries ‘Insiders’ or ‘Outsiders’ of the Knowledge-Based Economies?

Abstract

Man’s march from the cave to the information society has depended on the accumulation of knowledge and its transmission between generations and communities. A distinction must be made between knowledge accumulation and utilisation. Knowledge accumulation and its diffusion in time and space is imminent in humankind. It is the very essence of progress, improving living conditions and quality of life. The role of knowledge has changed significantly in this century. This paper concentrates on a narrow issue, namely, which models of innovation help to exploit science and technology for human well-being, improved competitiveness, the wealth of nations, protection of environment, etc. It touches on the transmission of knowledge and concentrates on flows of knowledge, and on the processes and players of transfer. It does not investigate the stock or the production of knowledge, inspirations of science, etc. The first section summarises the shift in the economic role of knowledge, the second investigates the different models of innovation and then goes into details of the tools and capabilities of transfers when feedback loops are important. The third section discusses the organisational issue and the fourth some questions beyond national boundaries. The fifth touches on the measurement of the flow of knowledge and the transfer of technology. The sixth makes some concluding remarks.