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The purpose of the Lisbon Strategy (2000, 2005), adopted by European Union member states is to establish an inclusive, dynamic knowledge based economy, with sustained economic growth and full employment. The building of knowledge-based economy/society (KBE/S) is the major common objective of the European Union, which not only improves the competitive position of the EU in the global economy, but also significantly contributes to the integrating processes within the EU. The current situation of substantial divergence as in the capacity to implement the transition to the Knowledge Economy/Society among EU member countries, especially among the new member states and the old ones, is an important hindrance to the process. The arguments presented in the paper can be summarised in three main areas, which should be improved to promote the creation of the knowledge-based economy/society in the EU: (i) Lack of linkages between theory/policy and practice/implementation in several areas, including ICT diffusion and use, RD (ii) Enhancement of life-long learning which will improve the human resources capabilities and thus enable the transition to a knowledge economy (iii) Improved flexibility and strengthening of the education system, including better links between university and business.
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