MEASURING KNOWLEDGE ECONOMY: TOWARDS AN INSTITUTIONAL APPROACH

Abstract

The general message of this article is that the standard approach to knowledge
economy is becoming increasingly inadequate, because even within the same market
system different countries take different paths of social development. The paper argues
that formal institutional arrangements, implemented according to EU recommendations
and backed by EU financing, merely touch upon the surface of the problem.
Therefore, it is necessary to introduce a conceptual and analytical framework
and address key issues related to knowledge economy and society. The paper stresses
the role of informal institutions, embeddedness, and the concept of social trust.