What Does Transition Mean?: Post-socialist and Western European Countries Paralleled

This paper suggests a broad concept of transition that is built upon the techno-economic paradigm framework, and defines transition as that institutional change process during which the 'match' between a new technology and institutions is attained. It is argued that the post-socialist transition itself should be seen as the first phase in this institutional change process brought about by the emerging new techno-economic paradigm (ICT revolution), which is a challenge also for Western European economies. This paper provides evidence for the claim that both the frontrunners and the continental Western European countries face the same problem—namely, acquiring the kind of institutional structure that is appropriate for the ICT revolution, as shown in two fields, i.e., the labour market and firm organisation.