Knowledge as a main factor influencing national competitiveness

Abstract

Under conditions of globalization every country wonders about national competitiveness. Competitiveness is a multidimensional feature of an economic entity that operates in a market economy describing its economic performance. The final goal of national competitiveness is to create welfare which the most general indicator is a level of earnings. Other indicators identified in many studies, such as ability to export, attractiveness, ability to adjust, etc., should be seen as factors, which lie in the bottom of the national competitiveness hierarchy. The factor of knowledge in this hierarchy takes important place between basic factors and the final goal of country's competitiveness. This paper analyzes a meaning of the national competitiveness and represents the most important influencing factors.