THE SECOND TRANSITION : Why Central Eastern Europe Needs Proactive Industrial and Innovation Policy Now

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The countries in Central Eastern Europe (CEE) have strongly industrialised economies and attained income levels comparable to Southern and Southwestern Europe. However, the gap in per capita income with respect to the technological leaders in Northern and Western Europe persists. A “second transition”, focusing on industrial and innovation policy, is necessary to reduce this gap. Upcoming technological innovations and EU climate action plans will have a strong impact on CEE countries. They must use these changes to attract and foster higher value-added elements of the production process and strengthen domestic technological competencies within their countries. Fostering these competencies will require active industry and innovation strategies that overcome the specific weaknesses of the current “dependent” growth model and bring productivity closer to the levels seen in Scandinavia or Germany.

Author(s): Ernst Hillebrand
Publisher: Friedrich-Ebert-Stiftung
Year: 2022

Language: English
Commentary: decrypted from A87F2EA7DA4C183026F4A196C36FFB72 source file
Pages: 26
City: Budapest

INTRODUCTION �������������������������������������������������������������������������� 2
1 SUCCESSFUL INTEGRATION:
THE INDUSTRIAL DIVISION
OF LABOUR IN EUROPE ����������������������������������������������������������3
2 THE CURRENT GROWTH MODEL:
DEPENDENT MARKET CAPITALISM
AND THE “FACTORY ECONOMY” ���������������������������������������9
3 THE SHAPE OF THINGS TO COME:
INDUSTRIAL AND TECHNOLOGICAL CHANGE ������������� 13
4 STRENGTHENING INNOVATION SYSTEMS
IN CENTRAL EASTERN EUROPE ��������������������������������������� 16
5 CONSEQUENCES FOR THE REGION‘S
ECONOMIC AND TECHNOLOGY POLICY ���������������������� 19
References ����������������������������������������������������������������������������������������� 21