The Fundamental Provisions of the Concept of Knowledge Economy

The purpose of this chapter is to study the fundamental provisions of the concept of knowledge economy. The authors use the systemic and dynamic approaches to studying socio-economic phenomena and processes. Also, the method of analysis of causal connections, the method of comparative analysis, induction, deduction, formalization, etc. are used. The authors conduct comparative analysis of knowledge economy and other types of economy, study the essence of the process of transition to knowledge economy through the prism of evolution of modern economic systems, and present a conceptual model of knowledge economy. As a result, the authors substantiate the evolutional point of view that treats knowledge economy as a pinnacle of the evolutional path of modern economic systems. The authors show that uniqueness of knowledge economy consists in the fact that it places human capital into the center of economic system, which allows satisfying public material needs and implementing the existing human potential (labor, intellectual, and innovational) of development, thus satisfying non-material needs of employees. This takes knowledge economy to the pinnacle of the evolutional path of modern economic systems.