Title:
Drivers of national innovation in transition: Evidence from an eastern European panel
Drivers of national innovation in transition: Evidence from an eastern European panel
Authors
Krammer, Marius S.
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Abstract
Innovation plays a crucial role in determining today's economic growth patterns. But what
enables some countries to innovate more than others? This study attempts to answer this question
by analyzing in premiere a panel of sixteen Eastern European transition countries. It provides a
detailed description of innovation by identifying regional differences in terms of historical
heritage, technological specialization, commitments and main actors involved in this process,
before and after the fall of communism. Secondly, it explores empirically the main drivers of
their innovative output, proxied by patents, using a variety of econometric techniques. The results
confirm the importance of R&D commitments from both public and private sources, the crucial
role of universities and existing national knowledge base. Policy measures such as intellectual
property rights protection or the business climate impact significantly the propensity to patent,
while measures of transitional downturn and industrial restructuring have an important negative
effect. Finally, globalization contributes to developing new innovations via inflows of foreign
investment and trade.
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2008-09
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