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Are systems of innovation in Eastern Europe efficient?

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  • Kravtsova, Victoria
  • Radosevic, Slavo

Abstract

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.

Suggested Citation

  • Kravtsova, Victoria & Radosevic, Slavo, 2012. "Are systems of innovation in Eastern Europe efficient?," Economic Systems, Elsevier, vol. 36(1), pages 109-126.
  • Handle: RePEc:eee:ecosys:v:36:y:2012:i:1:p:109-126 DOI: 10.1016/j.ecosys.2011.04.005
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    Cited by:

    1. Antonelli, Cristiano & Gehringer, Agnieszka, 2015. "Knowledge externalities and demand pull: The European evidence," Economic Systems, Elsevier, vol. 39(4), pages 608-631.
    2. Fujii, Hidemichi & Managi, Shunsuke, 2015. "Optimal production resource reallocation for CO2 emissions reduction in manufacturing sectors," MPRA Paper 64703, University Library of Munich, Germany.
    3. Pop Silaghi, Monica Ioana & Alexa, Diana & Jude, Cristina & Litan, Cristian, 2014. "Do business and public sector research and development expenditures contribute to economic growth in Central and Eastern European Countries? A dynamic panel estimation," Economic Modelling, Elsevier, vol. 36(C), pages 108-119.
    4. 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.
    5. 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.

    More about this item

    Keywords

    Innovation systems; Technology capability; Central and Eastern Europe; Productivity;

    JEL classification:

    • P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
    • P52 - 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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