Transformations  in
Business & Economics

Service Sector as a Stimulus of Knowledge-Based Economy Development
Grazyna Wegrzyn

ABSTRACT. This paper aims at identifying the differences in service sector development between Poland and other EU member countries in the context of building a knowledge-based economy. The developed economies of modern era experience a decrease in employment in agriculture and industry, coupled with increasing employment levels in the service sector. The service sector became considered as a sort of development index for economy, society and general civilisation level. The development level of service sector affects not only the economic growth rate and the competitive edge of national economies, but also secures a high standard of living and social security for the nations. The fast developing economies get more and more dependent on efficient generation, acquisition, diffusion and application of knowledge. The application of knowledge and use of information is becoming the main factor of international competition and consequently of wealth creation and living standards improvement.

In order to facilitate this process, it seems necessary to pay special attention to the development of services, especially the knowledge-supporting ones. This sector, comprising such services as information and communication, professional, scientific and technical activities as well as education, is indispensable for further economic development.

KEYWORDS: knowledge-based economy; service sector; knowledge-intensive services; innovation, Poland.

JEL classification: E24, L80, O52, P2.