Influence of the Selected determinants on the development of the knowledge economy – Czech case study

Abstract

Knowledge is one of the main sources of competitive advantage in periods undergoing a significant shift towards a knowledge economy. Therefore, the economic potential of each entity is determined by its ability to create, use and share knowledge. There are no standard, generally recognized methods that are able to determine the extent to which an economy is based on knowledge. Many renowned authors use patents to analyze and measure the output of the knowledge economy. The aim of this paper is to analyze the influence of selected determinants of the knowledge economy that affect its output, i.e., the number of patents in the Czech regions, by using original multiple linear regression models. Data for the analysis were obtained from the Czech Statistical Office's databases for the years 2007-2011. The results confirm the importance of the human factor during the process of patent creation. The role of increasing expenditure on research and development activities was proven to be insignificant in the Czech regions. In the Czech Republic, there is a lack of studies measuring knowledge economy and its determinants. Therefore, we provide an initial analysis of determinants influencing knowledge economy and some practical implications for policy makers.