KNOWLEDGE ECONOMY AND INNOVATIONS AS FACTORS OF AGRARIAN COMPETITIVENESS

Today, more than ever, development of agriculture leans on science research results and their practical application. Research in the field of agriculture is conducted by large network of public institutions, institutes and universities are mostly directed toward improvement of production. Economical research, at the level of husbandry, market analysis, or analysis and estimations of economic policy is poorly developed. Profitability of agriculture and food industry should be improved and supported by adequate research and application of gained results. Experience acquired in research and education systems of post-communist countries can help these countries change their economy towards knowledge, innovations and new technologies. But, in spite of great number of research workers and successful education system inherited from the communist period, it would be difficult for countries that were part of East Block to turn these potential advantages into commercially successful innovations unless universities and research institutions cooperate closely with private sector, what implies restructuring research system towards adjustment to agro-economy needs.