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Technology change is one of the aspects which should be analysed by various economic relations. The logic of regional systems concerns the integration of enterprises and regional institutions with their environments, which in turn provide them with necessary production factors such as: labour, entrepreneurship, material and non-material infrastructure, social culture, and institutions. The aim of this paper is to analyse the role of technology in the process of creating and using knowledge and its impact on the economic efficiency of the companies which function within their boundaries. The analysis is conducted using an Schumpeterian approach which gauges the influence of technology on the degree of knowledge utilisation and innovation levels in enterprises from regional economic systems. ; r.ciborowski@uwb.edu.pl ; Professor, University of Bialystok, Faculty of Economics and Management, Head of Political Economy Department. ; University of Bialystok, Poland, Economics and Management Faculty, Political Economics Department ; Arrow, J.K. (1962). The Economic Implications of Learning by Doing. Review of Economic Studies, 29(3), 155-173. ; Autio, E. (1998). Evaluation of RTD in regional systems of innovation. European Planning Studies, 6(2), 131-140. https://doi.org/10.1080/09654319808720451. ; Ciborowski, R. (2018). Determinanty międzynarodowego transferu technologii w krajach słabo rozwiniętych [Determinants of the International Technology Transfer in Underdeveloped Countries]. International Business and Global Economy, 37, 41-52. http://dx.doi.org/10.4467/23539496IB.18.003.9376. ; Ciborowski, R. & Skrodzka, I. (2019), International Technology Transfer and Innovative Changes Adjustment in EU. Empirical Economics, 56(5), 1-21. https://doi.org/10.1007/s00181-019-01683-8. ; Clark, I. (1999). Globalization and International Relations Theory. Oxford: Oxford University Press. ; Freeman, C. (2003). A Schumpeterian Renaissance?. SEWPS SPRU, 102, 1-19. Retrieved from: https://pdfs.semanticscholar.org/e236/f2ca67d248fffbe9af546e2490bdd5733335.pdf. ; Lundvall, B.A. (Ed.) (1992), National Systems of Innovation: Towards a Theory of Innovation and Interactive Learning. London: Pinter Publishing. ; Maillat, D. (1998), From the Industrial District to the Innovative Milieu: Contribution to an Analysis of Territorialised Productive Organisations. Recherches Économiques de Louvain/ Louvain Economic Review, 64(1), 111-129. ; Maskell, P., Bathelt, H., & Malmberg, A. (2006). Building global knowledge pipelines: the role of temporary clusters. European Planning Studies, 14(8), 997-1013. https://doi.org/10.1080/09654310600852332. ; Rosenberg, N. (1971). The Economics of Technological Change, Harmondsworth: Penguin Books. ; Salmi, P., Blomqvist, K., Ahola, J., & Kylaheiko, K. (2001). Industrial districts and regional development: towards a knowledge-based view. Working papers 7, Lappeenranta: Telecom Business Research Centre. ; Schumpeter, J.A. (1939). Business Cycles, A Theoretical, Historical and Statistical Analysis of Capitalist Process, t.1, London: Porcupine Press. ; 3 ; 1 ; 95 ; 104

Purpose: The article aims to assess the extent to which International Technology Transfer (ITT) can influence the innovation level of European Union (EU) countries and, as a result, accelerate their economic development. This is vital from the point of view of the developing countries which are striving to narrow the development gap as rapidly as possible. Design/Methodology/Approach: The study uses a soft modelling method which makes it possible to measure and analyse the dependencies between variables than cannot be directly observed, i.e. latent variables. The soft model consists of two sub-models: an internal one, describing the relationships between the latent variables, and an external one, characterising the latent variables by means of observable variables. The statistical data used for estimating the model come from Eurostat, the World Bank, and the European Innovation Scoreboard database and span the years 2008-2017. Findings: The results of the modelling indicated a positive impact of ITT on innovation levels in EU countries and a positive impact on both ITT and innovation levels on the economic development of the studied countries in the period 2008-2017. The influence of innovation levels on economic development proved to be stronger than the influence of ITT. Practical Implications: The results of the conducted study can have a practical application and serve as an instrument of innovation policies, industrial policies, or as a tool helpful in creating conditions for innovation systems. Originality/Value: The article points to the methods and extent of gaining knowledge and technologies as prerequisites of higher innovativeness of EU countries, which constitutes an original approach to technological processes as a component of economic development. ; peer-reviewed