ABSTRACT
The transformation of national production in Greece was to a large extent less affected by a pivotal element characteristic of the dynamics of each and every economic system. The elements that will be analyzed in order to assess and explain the one-directional inclination of the Greek economy towards the importation of technology and its inability to form an indigenous and multifaceted base for knowledge are the following three. First, the contents of the accumulation of physical capital and second, the nature of the Greek economy's integration in the international market and manner in which was achieved, especially as regards the behaviour of the private sector. Third, the management of technological transformation and the role of the state, again in comparison to the manner in which the private sector behaved. The aim of this policy of protectionism was to check costs of operation and thus to secure increases in profits and the degree of competitiveness of the traditional mainly manufacturing activities.
