and Higher Education Policy

The present phase of development is characterized by knowledge-based production. The knowledge economy places greater value and stronger emphasis on the production and distribution of knowledge – R&D. Knowledge production used to be an activity coordinated by the public authorities and public universities played an important role in R&D activities. At present, knowledge production in many developed countries is critical for industrial production and has become an important corporate concern. Based on the available sources of information, this paper argues that the knowledge divide is deep and is heavily tilted in favor of developed countries. Developing countries suffer from a lack of both financial and human resources in R&D. They need to improve their capacity to produce knowledge domestically and absorb the knowledge produced elsewhere. This can happen when allocation of financial resources to R&D activities increases, human resources are trained in adequate numbers and an institutional framework to carry out R&D activities is created. While universities play a less significant role in funding and carrying out research, thei