The article details the continuous pace of technological, innovation and labour skill progress toward the establishment of knowledge-based economies as the next step of post-industrial economic development. Innovation is presented as the key factor of this process, and potential approaches toward increased innovation activities for the purpose of technological and industrial advance are outlined and characterized. Changes in the economic environment, notably competitiveness and obtaining competitive advantages, in the context of the transition to the knowledge-based economy are examined. Crucial role of skilled labour and continuous learning is substantiated for the sake of effecting continuous innovation development, and the ways to identify potential indicators to measure such progress are proposed. Also, priority directions for capital and intangible investments within the transition to the knowledge-based economy are determined.