Last updated: 10.25.2005.


Business and Knowledge in 21st Century

Rossitsa Chobanova


††††††††††† The innovation is the most natural interconnection between the business and the knowledge, as it is a process of transformation of knowledge into product, service, or new business structure, leading to higher productivity and competitiveness.

The defended thesis is that the knowledge is becoming the main source and engine of economic development. The speed, the driving forces, and the structure of the innovation process lead to the evolution of its models and create new challenges for firm and national innovation strategy and policy development. The frame of a new paradigm is emerging, where the knowledge is the main source of economic development.

††††††††††† The presented arguments are based on the accelerating importance of knowledge for the business and on globalozation with its driving forces and contemporary manifestations. A new model of interconnection between the knowledge and the business in innovation processí evolution (presented in six figures) is defined. In this model, increasing knowledge generation, transfer and flows become crucial for every business or national development.

††††††††††† On the base of European innovation scoreboard data and own calculations it is proved, that the level of innovativeness of the Bulgarian business is very low, in spite of the macroeconomic financial stability and GDP growth. And the state policy, declared in the National innovation strategy, is not directed to this problem



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