Accelerating growth and competitiveness of the European agriculture and an effective implementation of the “Europe 2020” strategy and its vision of stimulating sustainable development, based on knowledge and innovation is inextricably linked with the objectives of the „Common Strategic Framework”. Science and transfer of knowledge play a key role in implementing these challenges, which in rural areas are largely the responsibility of agricultural advisory services. The priorities identified in the strategy “CAP towards 2020” clearly indicate strategically important role that has been assigned the Farm Advisory System (FAS), whose activities are intricately connected with the transfer of knowledge and innovation. In Poland, the status of science, advisory services and knowledge transfer and the legal and financial considerations of science and innovation activities, which should promote economic development have, as yet, not met expectations. Conclusions indicate directions of the necessary system changes that will allow a more efficient process for innovation implementation in the agro-food sector and services in rural areas.