Knowledge economy implies that the rationality of individuals is limited because they make and adapt their choices in an environment affected by risk and uncertainty. The first part of this paper proposes an analysis of the knowledge economy based on its interdisciplinary nature. Thus classical theories adapt to visions that pertain to the dynamics of human interactions the restructuring of the social network theory the general equilibrium theory and the game theory. The research part of this paper identifies and explains the link between innovation and knowledge as well as its effects on the Romanian economy’s competitiveness and innovation. The conclusions illustrate that the consolidation of knowledge-based economy in Romania implies setting certain priorities such as: investing in education developing entrepreneurship creating an innovative and efficient system made up of companies research centers and universities which enables new technologies to be absorbed adapted and created for the society.