This paper presents an action-research project that took a marginalized village to the knowledge economy. Philosophical background of the concept and strategy, are presented. Experiment results, which are of dual nature (knowledge creation and socioeconomic progress of the community) – are also discussed. The most important finding, in the authors’ opinion is confirming that it is possible to take a marginalised village deprived of tourist attractions, human and social capital to the knowledge economy. Factors supporting and inhibiting change have been identified. In the area of community progress, direct economic benefits and (what is even more import) mindset changes that have been achieved are presented.