SPEEDING UP OF LITHUANIA’S ECONOMY VIA GLOBALIZATION
Keywords:competitiveness, dynamization, growth, economic driven pillars, knowledge economy index
Lithuania after two decades of the post-communist transformation and large scale experimentation with the European integration needs to dynamize and modernize the economy to arrive at viable 21st Century global models. Lithuania also needs to adopt very bold and innovative ways to “sell” to the world its extreme austerity sacrifices during the continuing period of global Great Recession and its earlier periods of bold systemic transformations as well.
By 2013, we have arrived at the critical amount of experiential knowledge and it is a high time to manage this knowledge for a much more realistic new understanding and more efficient governance of new risks and evidence-based policies in market economies fit for the 21st Century.
The big problem is that so far Lithuania’s changing economic models could not fully deploy its human resources in the modern way.The economy is still beset by the Soviet legacies and this constitutes the barrier to effectively employing human resources that are increasingly educated in modern ways at home or abroad.So the dual problem is that Lithuania badly needs modern human resources for its further rapid and modern development but at the same time there is not enough effective demand for them due to the outdated political-economic and financial structures and other still lingering Soviet legacies.
The big challenge before the country therefore is how to target the entire globe as Lithuania’s(current or potential)market in order to induce entirely new perspectives and actually create many more advanced opportunities for the young,newly educated people.If this problem is not solved in time,many will emigrate and thus condemn Lithuania to further transitional periods in its development on Europe’s periphery.The new methods of strategic management and competitiveness-boosting networking based on knowledge management are presented in the article. The article shows how Lithuania can benefit integrating education, research and business fostering innovations which catalyze the creation of added value.Two key aspects of today‘s knowledge-based economy: knowledge creation and knowledge transfer to businesses are presented in the article. Lithuania’s long term goals are to develop higher education and higher added-value market niches that will precisely call upon the new human resource capabilities to create an entrepreneurial economy that is integrated continentally and globally. The paper attempts to make more specific proposals for generating and effective use of synergy effects through the establishment of transport hubs and innovation research centers attached to universities which sponsor and help to spread an innovative culture amongst economic actors in Lithuania. The main strategy is the strenghthening of Lithuania’s knowledge economy and higher education that can sposor Lithuania to compete globally;It is being developed in the form of the”Strategy Lithuania 2030” where new challenges of dynamism and leadership were called for, the problems of higher education were on the agenda at the Vilnius conference”European Higher Education in the World” which was held on 5-6 September 2013during the Lithuanian Presidency in the European Union(EU2013LT).