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Are systems of innovation in Eastern Europe efficient?

Author

Listed:
  • Victoria Kravtsova
  • Slavo Radosevic

    (UCL School of Slavonic and East European Studies)

Abstract
This paper explores the determinants of the 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.

Suggested Citation

  • Victoria Kravtsova & Slavo Radosevic, 2009. "Are systems of innovation in Eastern Europe efficient?," UCL SSEES Economics and Business working paper series 101, UCL School of Slavonic and East European Studies (SSEES).
    • Handle: RePEc:see:wpaper:101
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    3. Zhelyu Vladimirov, 2018. "Discussing Innovation Policy Biases in the New EU Member States," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 3-26.
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    5. Foreman-Peck, James & Zhou, Peng, 2022. "R&D subsidies and productivity in eastern European countries," Economic Systems, Elsevier, vol. 46(2).
    6. Nieto, María Jesús & Rodríguez, Alicia & Hernández, Virginia, 2022. "International sourcing and the productivity of SMEs in transition countries: Formal and informal ‘region effects’ and the communist footprint," Journal of Business Research, Elsevier, vol. 145(C), pages 347-359.
    7. Antonelli, Cristiano & Gehringer, Agnieszka, 2015. "Knowledge externalities and demand pull: The European evidence," Economic Systems, Elsevier, vol. 39(4), pages 608-631.
    8. Teemu Makkonen & Timo Mitze, 2019. "Deconstructing the Education-Innovation-Development Nexus in the EU-28 Using Panel Causality and Poolability Tests," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 516-549, June.
    9. Foreman-Peck, James & Zhou, Peng, 2021. "Innovation policy and performance of Eastern European Countries," Cardiff Economics Working Papers E2021/15, Cardiff University, Cardiff Business School, Economics Section.
    10. Fujii, Hidemichi & Managi, Shunsuke, 2015. "Optimal production resource reallocation for CO2 emissions reduction in manufacturing sectors," MPRA Paper 64703, University Library of Munich, Germany.
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    14. Ljiljana Bozic, 2020. "Sources of Business Growth at Different Levels of Innovativeness: Case of Firms in EU Countries," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 18(2 (Summer), pages 127-145.
    15. German Blanco & Rajeev K. Goel, 2023. "Do weak institutions undermine global innovation production efficiency?," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1813-1838, October.
    16. Mustafa Cem KIRANKABEŞ & Abdullah ERKUL, 2019. "Regional knowledge production in Central and East European countries: R&D factor productivity and changes in performances," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 10, pages 25-44, June.
    17. Anna Golejewska & Dorota Czy¿ewska, 2015. "The least innovative regions in Poland and in France in the process of smart specialisation," ERSA conference papers ersa15p717, European Regional Science Association.
    18. Kincsö Izsak & Paresa Markianidou & Slavo Radošević, 2015. "Convergence of National Innovation Policy Mixes in Europe – Has It Gone Too Far? An Analysis of Research and Innovation Policy Measures in the Period 2004–12," Journal of Common Market Studies, Wiley Blackwell, vol. 53(4), pages 786-802, July.
    19. Szalavetz, Andrea, 2019. "Industry 4.0 and capability development in manufacturing subsidiaries," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 384-395.
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    21. Iciar Dominguez Lacasa & Alexander Giebler & Slavo Radošević, 2017. "Technological capabilities in Central and Eastern Europe: an analysis based on priority patents," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(1), pages 83-102, April.
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    23. S.I. Kubiv & N.S. Bobro & G.S. Lopushnyak & Y.I. Lenher & A. Kozhyna, 2020. "Innovative Potential in European Countries: Analytical and Legal Aspects," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 250-264.
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    More about this item

    JEL classification:

    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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