The paper considers priority goals of future sustainable development and assurance of food quality and safety in agricultural and food sector and underlines the necessity of establishment of Agricultural Knowledge and Innovation System (AKIS) in Bulgaria based on a production model with market-focused technology development system. Knowledge-based economy, and particularly the searched increase in competitiveness in agriculture and food industry, could be reached by creation and distribution of knowledge and innovations among stakeholders and networking. The establishment of such a technology development system would incorporate three main elements: measurement of inputs, market-focused technology development and information systems. It would foster rural development through knowledge exchange between stakeholders in support of production, marketing and processing of agricultural and food products, as well as natural resources management. AKIS is a framework embracing all the actors and their interactions in creation and transfer of knowledge in new and effective ways.