Transformations  in
Business & Economics

Multiple Criteria Assessment of the Country’s Knowledge Economy Determinants
Algis Zvirblis, Antanas Buracas

ABSTRACT. The sustainable economic development in the new EU countries must be oriented to definitive priorities of the competitive growth abilities as well as to creation of a modern knowledge-based economy. This paper concerns the complex assessment principles of the country’s knowledge economy advancement based on the key determinants by applying multiple criteria evaluation methods. The formulated theoretical backgrounds are focused on the quantitative evaluation model. Thus, by evaluation, the application of different significances of composite determinants determining the country’s knowledge economy advancement is provided. Wold Bank expert evaluations of the essential country’s primary indicators and they rating results are in detail analysed comparing Baltic States and Nordic countries. According to proposed evaluation methodology, firstly, the determinants are examined quantifiably by experts, with the significances of them established. Applying the Simple Additive Weighting method, secondly, the general knowledge economy advancement index as a consolidated measure has been determined. Lithuania’s knowledge economy advancement has been evaluated according to the 2011 situation and with account of prospective situation scenario according proposed assessment process has been forecasted.

KEYWORDS: knowledge economy, advancement, primary indicators, composite determinants, multiple criteria SAW method.

JEL classification: E24, I23, I28, J24, O15, O3, O47.