Raising Competitiveness of a National Economy through KnowledgeAccumulation. The Case of Israel

In the article the author reviews the main aspects that outline the competitiveness of the developed and the developing economies in the international market. The main indicator of competitiveness used is the Global Competitiveness Index (GCI) published annually in the «Global Competitiveness Report» by the World Economic Forum. The authors of the «Global Competitiveness Report» define a more competitive economy as one that is likely to grow faster over time.The author reviews a number of papers written by Russian-speaking researchers on similar subject. Detailed analysis of the integrative sub-indices of the GCI is followed by an attempt to articulate common key factors for competitiveness of different sub-groups of the developed and the developing economies. The author attempts to describe common features for every newly outlined sub-group.As a result of such analysis the author attempts to articulate the common factors that define the position of a certain economy in the GCI rating.The author attempts to define the position of the Russian economy in the index and the main determinant factors for its competitiveness.Global Competitiveness Report, Global Competitiveness Index, International Competitiveness, Developed Economies, Developing Economies, the Economy of Russia, innovation-driven factors of development.The author defines a separate category of economies: small resource-lacking countries. These countries have managed to develop their economies despite lack in resources and their small sizes (in terms of market and population). Israel being one of such economies deserves special attention. On the basis of modern concepts of «the knowledge economy» and the process of knowledge accumulation (being an important process to spur the competitiveness of an economy) the author analyzes Israeli experience.The analysis is focused on the activities of the Chief Scientist's Offices that operates within the Ministry of Economy of Israel. The project initiated by the Office contributed to the growth of the innovation potential in Israel during the last decades.

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