Knowledge as a factor of growth and production

For some time now, in the discussions on the factors, which determine the economic growth of countries and regions, and the sources of competitive advantage it has been stressed that knowledge is of paramount importance. According to the author, it’s a valid point although slightly exaggerated since the role of the knowledge has been recognized for a long time. Contemporary knowledge is being applied and created in a new way, as a result of the development of telecommunications and IT systems. By comparing the distribution of knowledgebased economy indices – as based on the World Bank’s research – the author proves that there is a correlation between these indices and the gross domestic product per capita. However, this is not a linear and common correlation.