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Original scientific paper

The Economy of Knowledge and the Local Development: Impact on the Innovation Policy

Jadranka Švarc orcid id ; Institut društvenih znanosti Ivo Pilar, Zagreb, Hrvatska

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The starting point of this paper is the need for an accelerated development of the Bjelovar- Bilogora County, which, with regard to the global competition, should be based on products and services with a higher level of added value; such development, therefore, demands the use of innovation, knowledge and training. The development of these factors indicates that the Bjelovar-Bilogora County strives towards developing an economy of knowledge, which should be adjusted to the regional competences in the production-related, technological, research, innovation and administrative aspects. The development of the economy of knowledge in the Bjelovar-Bilogora County should hence be based on creating a regional innovation system (RIS), which stimulates the modernisation of existing activities and technology not necessarily based on science and research, but rather on incremental innovations and the intellectual capital, and can therefore be the holders of the County’s development. Wishing to contribute to these strivings, the paper endeavours to explain both the term and the emergence of the economy of knowledge, and of the economic theories that have given the same economy of knowledge its current meaning. Further follows the description of the origin and the importance of the innovation system, and the innovation policy as a practical mechanism held by public policies, aiming at creating the preconditions for economic growth based on innovations and knowledge. There is an emphasis on the importance of introducing a regional innovation policy as a complement to the existing innovation policy in Croatia, which is planned and coordinated mainly at the central national level. A brief survey of the innovation policy and the innovation system in Croatia so far, as well as lessons to be drawn in relation to the regional innovation policy within the Bjelovar-Bilogora County, are offered. The paper further suggests a turn from the current national innovation system towards a dual innovation system that presupposes, on the one hand, the encouragement of innovations based on research and development, and on the other hand, the encouragement of a system of innovations based on technological competences of firms, which – basically – represents the building of regional innovation systems, including the Bjelovar-Bilogora County.


economy of knowledge, national innovation system, regional innovation system, Bjelovar-Bilogora County

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