SOCIOECONOMIC DEVELOPMENT AND

THE KNOWLEDGE SOCIETY: WHAT ARE EU

AND LATVIA FACING?

Ivans BērziņšInstitute of Economics, Latvian Academy of

Sciences

THE RISE OF THE KNOWLEDGE SOCIETY

The way capitalism reproduce itself changes through the History as a result of changing in:

1) The politics

2) The production of wellness

THE RISE OF THE KNOWLEDGE SOCIETY

The political side refers to the process of political and economic (neo)liberalisation

The production side refers to the rise of the Third Industrial Revolution

THE RISE OF THE KNOWLEDGE SOCIETY

The Knowledge Society may de defined as the expression of the way the capitalism system reproduce itself nowadays, based on the technological paradigms of the Third Industrial Revolution combined with process of neoliberalisation of the World’s economy, representing a new way wealth is produced and how concurrence takes place.

CONCURRENCE, INNOVATION AND KNOWLEDGE SOCIETY

Development X Growth

J. A. Schumpeter

CONCURRENCE, INNOVATION AND KNOWLEDGE SOCIETY

• The production of a new good• The implementation of a new organizational

paradigm in the production• The discovery of new markets that were not

explored before• The development and the discovery of new raw-

materials• The transformation of the market structure (for

example, eliminating other concurrent(s))

THE EU AND LATVIA IN THE KNOWLEDGE SOCIETY

• The EU is a net importer of technology

• In the top 20 products to World’s non-fuel export growth, EU15 has the leadership mostly in sectors of the Second Industrial Revolution, as furniture, paper and paperboard, base metal manufactures, plastics, etc.

Structure of the Latvian GDP by activity - %

14,00%

16,38%

11,95%

3,95%11,98%

5,21%

1,33%

4,36%

6,98%

4,67%

2,40%

6,35%

10,44%

Transport, storage and communications (I)

Wholesale, retail trade; repair of motor vehicles,motorcycles, personal, household goods (G)

Real estate, renting and business activities (K)

Agriculture, Fishing and Minig

Manufacturing

Construction

Hotels and restaurants (H)

Financial intermediation (J)

Public administration and defence; compulsorysocial security (L)

Education (M)

Health and social work (N)

Elitricity, gas, water suply and other community,social and personal service activities (O)

Taxes on products (minus subsidies)

THANK YOU VERY MUCH!