| Abstract: | This paper explores the potential for central and eastern Europe to catch up based on patent data. We analyze patent dynamics, sectoral specialization and the institutional basis of patenting activity in the US from 1969 to 1996. Our main conclusions are that, (1) income levels and growth rates are more important in determining foreign patenting activity than past institutional arrangements, (2) the technology competence of central and eastern Europe is path dependent; and (3) there are significant inherited inter-country differences that influence current patterns of adjustment. Analysis shows that knowledge spillovers will most likely occur in those areas that still have patentable inventions such as the engineering industries and pharmaceuticals. |
