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The impact of socialist legacy on regional differences in innovation activities and cooperation in Europe: A mediation analysis

Author

Listed:
  • Michael Fritsch

    (Friedrich Schiller University Jena)

  • Maria Greve

    (University of Utrecht)

  • Michael Wyrwich

    (University of Groningen)

Abstract

This paper examines how the legacy of socialist regime in countries of Central and Eastern Europe has affected innovation and R&D cooperation and compares this to Western Europe. Our analysis reveals that the negative impact of socialism on innovation Central and Eastern European countries is mediated by interpersonal trust and the quality of government. These findings highlight the significance of historical context for innovation activity. Our insights are particularly relevant for policymakers who are trying to create effective strategies to encourage technological development in post-socialist regions.

Suggested Citation

  • Michael Fritsch & Maria Greve & Michael Wyrwich, 2025. "The impact of socialist legacy on regional differences in innovation activities and cooperation in Europe: A mediation analysis," Jena Economics Research Papers 2025-010, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2025-0010
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    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2023/wp_2025_010.pdf
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    Keywords

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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