Paths (not) taken: promoting R&D in Central and Eastern Europe

Alexander Strelkov, Fadi Hirzalla and Vsevolod Samokhvalov

Journal of Contemporary Central and Eastern Europe, 2025, vol. 33, issue 1, 69-85

Abstract: Central and East European countries are “dependent market economies,” aiming to escape the “middle income trap.” Developing R&D is one of the potential solutions to this challenge. Although overall the CEE countries are not considered exceptionally innovative, they still exhibit variation in terms of their R&D deliverables. Through fuzzy-set QCA, this paper aims to explain which combination of causal factors accounts for this variation. Innovation promotion in the region is tied to securing financial support, while the lack of R&D development is connected to both the absence of international financial resources as well as weak links between academia and business. Our results offer support to the idea that the hub of innovation within the CEE has remained the automotive sector connected to the German market. The paper stresses the necessity to explore the national coordination mechanisms of R&D promotion as some countries failed to deliver even in the presence of ample financial resources.

Date: 2025
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DOI: 10.1080/25739638.2024.2436799

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