FOREWORD The last decades of the 20th century have represented a turning point in the global development process. It is knowledge that has become the engine of the social, economic and cultural development in the today’s world. Knowledge-intensive economic activities are now a factor of production of strategic importance in the leading countries. They have also become the main indicator of the level of development and the readiness of every country for a further economic and cultural growth in the 21st century. Taking into consideration all these factors, the United Nations Economic Commission for Europe has launched an initiative of monitoring and analyzing the development of the knowledge-based economy in all the European countries in transition and emerging market economies. The major goal of this initiative is to stimulate the exchange of national experiences, to identify best practices and to promote region-wide and global-wide cooperation of the UNECE member States, which would accelerate the development of a knowledge-based economy in the countries in transition and emerging market economies. It envisages the preparation of country assessment reports on the biennium basis by national experts, nominated by the Governments, the creation of a High-Level Task Force on the Knowledge-Based Economy, which will consider the reports and provide policy advice and recommendations to the participating countries, and the development of progress measurements and indicators, policy guidelines and tools to assist countries in overcoming obstacles to the development of a knowledge-based economy. We hope that the country assessment reports, showing a detailed level of the countries’ potential and providing information on various approaches and solutions, will help policy-makers to take strategic decisions with regards to the challenges facing them in the development of institutions, information and innovation systems, human resources development and other areas crucial for the development of a knowledgebased economy. Brigita Schmőgnerová Executive Secretary United Nations Economic Commission for Europe iii