The Activity of Local Government in Building a Knowledge-based Economy

Abstract

The article explains the concept of a knowledge-based economy and the role of local government in the process of its construction. It is assumed that the reorientation of an economy takes place in stages and the regions are moving on the path of development from material-intense and labor-intensive growth, through capital-intensive to high-tech knowledge-based growth. A knowledge-based economy is defined as an economy based on the creation, transfer and implementation of knowledge. Support for the new economy, in which knowledge plays a key role, becomes a huge challenge for the government, whose goal is to achieve a high level of development and competitiveness. The article includes a selection of local government units. The purpose of this article is to explain of the concepts of local government and the knowledge-based economy and to identify the activities of local government units in building the knowledge-based economy. The examples of local governments will be analyzed to encourage the creation and spread of knowledge.