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The purpose of the study is to propose a procedure for choosing a business model of a machine-building enterprise, depending on the degree of utilization of scientific knowledge of the company’s employees in the production. The subject of the article is the search for a new business model based on education and science in order to develop Russian mechanical engineering in the period of the emergence of the knowledge economy. At the same time, mechanical engineering is positioned as a basic branch of the knowledge economy. To select a business model, depending on the degree of use of scientific knowledge at a machine-building enterprise, a system of factors and their indicators is substantiated. The identified factors are related to possible knowledge-based business models. When choosing a business model in mechanical engineering, the most adequate to the development of the knowledge economy is the option with a high degree of utilization of scientific knowledge of workers. Therefore, the management of the system of selected factors should be aimed at the predominant use of indicators that provide this option in the production. Knowledge management is selected as the mechanism for implementing the required business model. Prospects for further research are in the organic combination of business modeling with knowledge management technologies created and applied in the dominance of the humanistic paradigm.

Development of Mechanical Engineering in Knowledge Economy: Search for New Business Model