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

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.