Science, Society and Sustainability 343 GREEK SMES IN THE INFORMATION SOCIETY: ICT USE AND INTEGRATION IN THE REGION OF DYTIKI MAKEDONIA Petros Rodakinias 1 , Pantoleon Skayannis 2 , Anna Zygoura 1 1 Researcher, University of Thessaly, Department of Planning and Regional Development, Research Unit of Infrastructure, Technology Policy and Development. 2 Associate Professor, University of Thessaly, Department of Planning and Regional Development, Research Unit of Infrastructure, Technology Policy and Development. INTRODUCTION World economy is currently undergoing a period of transition, towards the Information Society. Changes are significant and constant, with information (or knowledge) and its management becoming the major driving force behind economic activity. The need for restructuring at all levels is a reality faced by enterprises all over the world and it is becoming more and more evident that enterprises that cannot meet this challenge will have a very difficult time staying competitive. The Information Society provides opportunities for companies of all sizes to innovate, increase efficiencies and gain access to new markets. In many ways, SMEs stand to benefit most from the Information Society; unlike large enterprises, many of which already operate in national or global markets through well-established networks of affiliates, the national or international potential of SMEs has been constrained because of their small size, lack of resources and limited ability to identify and work with new customers and suppliers at a distance from their headquarters. ICTs eliminate these disadvantages by opening up national and global markets to any company with an effective strategy for conducting business with the use of ICTs. Despite these opportunities, SMEs most often lag behind in the exploitation of new technologies, and this raises important questions for policy makers. The successful transition of SMEs towards the knowledge-based economy is especially important for countries, such as Greece, with SMEs forming the largest part of their economies (in Greece, approximately 98% of enterprises are SMEs). In this context, this paper attempts to evaluate the progress of Greek SMEs regarding their transition to the Information Society and identify possible reasons behind any shortcomings, using the Region of Dytiki Makedonia as a case study. SMES IN THE INFORMATION SOCIETY The knowledge-based economy is characterized by the conversion of knowledge into raw material, capital and products, and through economic processes within which such activities as generating, selling, buying, learning, storing, developing, sharing and protecting knowledge become a predominant and decisive condition for profit generation and the long-term competitiveness of enterprises and the economy. The knowledge-based economy can be attributed characteristics which differentiate it fundamentally from all previously-known economy types: - Importance of Knowledge: while it can be argued that knowledge was always important for enterprises, in the knowledge-based economy the value of knowledge has risen to unprecedented heights. Knowledge takes priority of everything else, due to the decisive impact which it has on functionality and performance. The importance of intellectual property is constantly rising and intellectual property rights are becoming a major issue all over the world.