Knowledge economy is a popular notion today. It embraces a vast array of economic and economic policy domains. These are infrastructure and services, information services, acquisition of knowledge and skills, innovations, and research and science.

 

It is our belief that, for a knowledge economy to develop, all preconditions need to be in place as for any other branch of the economy. Only knowledge economy is affected by much faster market changes and a much broader demand than anything else. The most essential conditions for knowledge economy are efficient public administration, minimal regulation, and an effective educational system. The inherent flaws in today’s system of financing and administering higher education distort students’ and teachers’ motivations. They preclude competition among educational establishments and the achievement of such a level of employee qualifications that would reflect the needs of a knowledge economy-driven labour market.

 

The aforesaid three preconditions (1) are necessary to ensure competitiveness of Lithuanian companies, (2) can be created with the help of economic policy instruments (unlike, for example, oil prices on the world market or the situation on the export markets), and (3) do not undermine competition (unlike, for example, the promotion of priority sectors or special programmes for attracting foreign investment).

 

LFMI has traditionally paid much attention to the regulatory set-up of telecommunication and information technology in Lithuania and the European Union, including e-government and the creation of a public information (registers) market. If the aim is to find new sources for increased competitiveness and economic activity, market-oriented changes in EU telecommunication policy and other information-related areas are necessary.  

 

Our primary goal in the area of knowledge economy is to heighten public understanding that:

·        knowledge economy is not a sector, or a group of sectors, of the economy but a certain state of the economy;

·        e-government does not mean the employment of technologies but efficient public administration and the treatment of citizens as clients by state institutions;

·        market-oriented reform of higher education is vitally important in promoting competitive business.