Description: Research questions· what general approach to use in development of the national system of indicators for formal education (and other forms of transfer of knowledge - TK) useful for different purposes · what are the methodological and practical questions on indicators important for development of such a system · what theoretical framework is the most useful for the formation of such a system · What approach is most useful for organising indicators in the system· what indicators are best among those available in international literature and statistical sources· what is the "right" (acceptable) number of indicators for complex analysis of situation and trends in the country· what is the best description of indicators (model of description) for the valuable use of them Objective and purpose: Development of the national system/list of indicators (and their description) for covering all important dimensions of formal education, useful for valuable comparison of the national system of this education with other countries. Value: Development of methodology of formation of a valuable national system of indicators on formal education for the country which is not the member of OECD.Conceptual/theoretical framework· formal education is put into broader context of "transfer of knowledge" and consequently indicators for this education· among different possible approaches for grouping indicators in the system the production approach ("input-output model") will be used, but one's own version will be developed · model of description of indicators has to include all the information which allows clear understanding of indicators and their valuable useState of the art: Main characteristics are: overflow of indicators on education in different sources, lack of analyses of methodological and practical questions on indicators, no general agreement on best theoretical frameworks for indicators on education, on approaches for their organisation within the system and on best models of description of indicators.ABSTRACTFast development towards a knowledge based society is the goal of the majority of European countries and is closely connected with the Lisbon strategy. Measurement of this development has been recently the research topic of many European institutions and experts. The paper presents the results of the research project "Factors and indicators of development of knowledge based (Slovene) society" (Bevc et. al., 2004-2006). Our starting point is the definition of knowledge based society as a cycle of three processes of knowledge - creation, transfer and use of knowledge and further considering formal education as one part of transfer of knowledge. Firstly, we present the overview of questions connected with indicators, then the methodology for the formation of national lists of indicators for transfer of knowledge and more precisely for formal education and finally, more precisely the list of indicators for formal education for Slovenia and the model for description of indicators. At the end some main conclusions are presented. Methodology: Methods: comparative analysis, qualitative, deduction, induction, synthesis. Methodology includes the following main steps:· analyses of different theoretical approaches for indicators and approaches for organising indicators; development of one's own model· analyses of international and national lists of indicators and sources of data for them; development of one's own lists· analysis of different models of description if indicators and development of one's own model Conclusions: · key (best) international sources of indicators for formal education are "Education at a Glance-OECD Indicators" (OECD) and "Key data on education in Europe" (Eurostat-Eurydice)· the best approach for organising indicators in the system is production approach, where one's own version is developed with exact explanation of its particular elements · most important elements in description of indicators are: title, field of the indicator in production approach (inputs, etc.), description of what it measures, formula, source of data, methodology notes, international source of the indicator, frequency of publishing, situation in the country (availability, source of data, etc.), notes (advantages, shortcomings, others)