PREFACE The industrial revolution of the 19th century and the scientific revolution of the 20th century have prepared the conditions for the rise of the knowledge-based economy. Economic activities associated with the production and utilization of information and knowledge have become an engine of economic growth in the developed market economies, increasingly transforming all the other dimensions of development and the entire societal modus vivendi and modus operanti of the humanity. What do we mean by “the knowledge-based economy”? It is not just the digital economy, which incorporates the production and use of computers and telecommunication equipment. It is not quite the networked economy, which incorporates the telecommunication and networking growth during the last decades and its impact on human progress. The knowledge-based economy is a much complex and broader phenomenon. There are different dimensions and aspects of the knowledge-based economy: 1. The knowledge-based economy has a very powerful technological driving force – a rapid growth of information and telecommunication technologies (ICT). Every three – four year there appears a new generation of ICT. Today, the ICT companies are among the largest corporations. The ICT sector is among the fastest growing economic sectors. 2. Telecommunication and networking, stimulated by a rapid growth of ICTs, have penetrated all the spheres of human activity, forcing them to work into an absolutely new mode and creating new spheres. The information society has become a reality. 3. Knowledge, based on information and supported by cultural and spiritual values, has become an independent force and the most decisive factor of social, economic, technological and cultural transformation. 4. The knowledge-based economy has allowed a quick integration of the enormous intellectual resources of economies in transition into the European intellectual pool, stimulating the development of the former countries. Every country can benefit from developing a knowledge-based economy to become a more equal participant in the global development process. 5. The emerging knowledge-based economy has been affecting other areas of societal activity in every country, including institutional and innovation system, human resources development and etc. and visa versa. The knowledge-based economy has become an engine of progress in every country. If a country is developed, it has a developed knowledge-based economy, if a country is lagging behind, a knowledgebased economy constitutes just a small fraction of its economy. v