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Drivers of national innovative systems in transition: an Eastern European cross-country analysis

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  • Krammer, Marius /S.S.

Abstract

Innovation plays a crucial role in determining today’s economic growth patterns. But what enables some countries to innovate more than others? This paper employs in premiere a panel of sixteen Eastern European countries throughout their transition period exploring empirically the drivers of their innovative capacity using as a proxy the number of patent granted in the USA. The econometric analysis confirms the importance of R&D commitments and innovative tradition in the form of existing knowledge stock. Increased trade openness and intellectual rights protection determine higher international patenting, while the transition specific factors, such as structural industrial distortions or aggregated output drops, have a significant negative influence. Governmental funding and research performance of universities encourage more innovation at the technological frontier, while the business R&D funding in Eastern Europe is negatively correlated with it.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7739.

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Date of creation: 07 Mar 2008
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Handle: RePEc:pra:mprapa:7739

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Keywords: National innovative systems; Transitional Economies; Patents; Eastern Europe;

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  1. Raiser, Martin & Schaffer, Mark E & Schuchhardt, Johannes, 2003. "Benchmarking Structural Change in Transition," CEPR Discussion Papers 3820, C.E.P.R. Discussion Papers.
  2. Slavo Radosevic, 2004. "A Two-Tier or Multi-Tier Europe? Assessing the Innovation Capacities of Central and East European Countries in the Enlarged EU," Journal of Common Market Studies, Wiley Blackwell, vol. 42(3), pages 641-666, 09.
  3. Acs, Zoltan J. & Anselin, Luc & Varga, Attila, 2002. "Patents and innovation counts as measures of regional production of new knowledge," Research Policy, Elsevier, vol. 31(7), pages 1069-1085, September.
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  7. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
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  12. Sunil Kanwar & Robert Evenson, 2001. "Does Intellectual Property Protection Spur Technological Change," Working Papers 831, Economic Growth Center, Yale University.
  13. Waguespack, David Matthew & Birnir, Johanna Kristin & Schroeder, Jeff, 2005. "Technological development and political stability: Patenting in Latin America and the Caribbean," Research Policy, Elsevier, vol. 34(10), pages 1570-1590, December.
  14. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
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