Are systems of innovation in Eastern Europe efficient?

This paper explores the determinants of productivity in the countries of Eastern Europe (EE) through the perspective of ‘narrow’ and ‘broad’ national systems of innovation (NSI). Based on panel econometrics, it examines the extent to which systems in EE could be considered ‘(in)efficient’. Our results suggest that the EE countries have lower levels of productivity than might be expected given their research and development (R&D), innovation and production capabilities. The inefficiencies of ‘broad’ NSI are compounded by the inefficiencies of ‘narrow’ NSI in terms of generating numbers of science and technology publications and resident patents relative to R&D employment compared to the rest of the world. Our results point to an important distinction between technology and production capability as the drivers of productivity improvements and provide some policy implications.     

The Product Structure of Central and Eastern European Trade: The Emerging Patterns of Change and Learning

MOCT-MOST: Economic Policy in Transitional Economies -     

Technological 'Catching-up' Potential of Central and Eastern Europe: An Analysis Based on US Foreign Patenting Data

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.     

Book review article In search of an alternative theory: a critique of Dosi et al.'s Technical change and economic theory

In this article the author discusses the main contributions and controversial issues raised in an important bookTechnical change and economic theory. The book represents a cornerstone in theorizing technical change. The main features of the book are summarized and the author discusses a number of controversial issues, such as: the evolutionary perspective; the notion of a technoeconomic paradigm; the analysis of firms' technological behaviour; the notion of institutions; the problem of ‘catching up’ in technology; the treatment of formal modelling and policy implications; and treatment of social aspects of technical change. The author concludes that the book should be treated as a work in progress and not as a fully developed and comprehensive approach. However, the critical mass of findings, gathered in this book, is important reading, and represents an important step forward in the exploration of a new approach to economic theory.     

Nature and determinants of productivity growth of foreign subsidiaries in Central and East European countries

The paper examines the determinants of productivity growth in foreign manufacturing subsidiaries in five Central and East European (CEE) countries by analysing patterns of control, nature of firms’ capabilities and firms’ market orientations. Building on the so-called ‘subsidiary development’ perspective, we show that productivity growth is determined jointly by corporate governance, production capability and market orientation variables. Within a dominantly production-oriented mandate, CEE subsidiaries have a relatively high level of autonomy in the control of their business functions. Majority foreign equity shareholding has a significant and positive impact on subsidiaries’ productivity growth. Our results show strong regional characteristics.     

Between vision and reality: Promoting innovation through technoparks in an emerging economy

The paper analyses the role of technoparks as instruments of innovation promotion in Kazakhstan using data from a firm survey and interviews. It explores three specific issues: first, the overall effectiveness of technoparks in promoting innovation development in Kazakhstan, second, the underlying innovation model in Kazakhstan technoparks, and third, whether technoparks can compensate for missing elements in the technology-based infrastructure and environment. Our conclusions are that technopark firms are no more innovative than other firms. They are oriented largely towards the local market, and operate in traditional sectors; the frequency and intensity of their external links are more developed than are their internal links. The key motivations for relocating to a technopark seem to be lower rents and the possibility of accessing finance. Overall, Kazakh technoparks seem to be successful in terms of facilitating business incubation, but much less so in terms of innovation promotion and diversification of the economy. Focusing on technoparks as the main mechanism to diversify the economy seems to be an ineffective and uncertain policy option at this stage of the country's economic development. However, there seems to be significant scope for supporting business incubation. The conclusions of this study are of relevance to other emerging economies.     

Technological 'Catching-up' Potential of Central and Eastern Europe: An Analysis Based on US Foreign Patenting Data

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.