The concept of knowledge economy is expounded and its constituents:intellect, information and knowledge have been elucidated. Basic problems have been singled in the context of development of economy, which is knowledge based. The concepts of the national innovative system and innovative culture have been covered. The real condition of spheres of education and science in Ukraine has been characterised. On the basis of the conducted research, prospects of development of the knowledge economy in Ukraine have been analysed and strategic tasks aimed at the removal of existing difficulties in the field of educational and scientific activity have been offered.
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