Technology transfer and institutional development in Central and Eastern Europe

The transfer of technology from developed countries to emerging markets has been of central interest to MNCs. This paper examines the problems associated with technology transfer in the context of Central and Eastern European countries. Contrary to a common perception of the region, we argue that different country institutional characteristics are determinants of technology transfer. By outlining the recent socioeconomic changes in the region, we consider the adoption of essential market institutions and the specific norms of regional integration with the European Union as these most important determinants. The paper concludes with the overview of potentially successful technology transfer strategies for MNCs interested in investing in the countries of Central and Eastern Europe.