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.     

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.     

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.