In this day and age, knowledge has became the best and most important resource for creating break-through development of each country; the answer to the great power of science and technology revolution in the development of the world. From analyzing the concepts of knowledge and mentality, the study makes clear the dialectical relationship between knowledge and mentality. In the relationship, knowledge and mentality precribe and control the development of one another. Knowledge is the basis for the development of mentality, mentality is considered to be the motivation for creating of new knowledge, and developing it on higher level in perception of the objective world. Knowledge is the determining factor of the development of mentality. From the above study, the author drew on the meaning of methodology for development strategies, enhancing the competitiveness of countries and quickly adapting to changes of knowledge economy.

knowledge, mentality, knowledge economy, the relationship between knowledge and mentality, mentality development