DEVELOPMENT OF KNOWLEDGE-BASED ECONOMY IN EUROPEAN UNION IN 2000-2014.

Knowledge-based economy (KBE) is an economy where knowledge is created, acquired, transmitted and used effectively by businesses, organizations, individuals and communities. The concept of KBE was emphasised in the EU programmes such as the Lisbon Strategy and the Europe 2020 Strategy. One of the three priorities of the Europe 2020 Strategy is to promote smart growth, understood as developing an economy based on knowledge and innovation. The aim of the paper is to analyze the development of KBE in European Union in period 2000-2014. The concept of KBE measurement is based on Knowledge Assessment Methodology and the soft modeling method.