Growing role of intellectual capital within organizations is affecting new strategies related to knowledge management and competence development. Among different aspects related to this field, knowledge diffusion has become one of the interesting areas from both practitioner and researcher's perspectives. Several models were proposed with main goal of simulating diffusion and explaining the nature of these processes. Existing models are focused on knowledge diffusion and they assume diffusion

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... thin a single layer using knowledge representation. From the organizational perspective connecting several types of knowledge and modelling changes of competence can bring additional value. In this paper we extended existing approaches by using multilayer diffusion model and focused on analysis of competence development process. The proposed model describes competence development process in a new way through horizontal and vertical knowledge diffusion in multilayer network. In the network, agents collaborate and interchange various kinds of knowledge through different layers and these mutual activities affect the competencies in a positive or negative way. Taking into consideration worker's cognitive and social abilities and the previous level of competence the new competence level can be estimated. The model is developed to support competence management in different organizations.