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Industrial Policy for a New Growth Model: A Toolbox for EU-CEE Countries

Author

Listed:
  • Alexandra Bykova

    (The Vienna Institute for International Economic Studies, wiiw)

  • Rumen Dobrinsky

    (The Vienna Institute for International Economic Studies, wiiw)

  • Richard Grieveson

    (The Vienna Institute for International Economic Studies, wiiw)

  • Maciej J. Grodzicki
  • Doris Hanzl-Weiss

    (The Vienna Institute for International Economic Studies, wiiw)

  • Gabor Hunya

    (The Vienna Institute for International Economic Studies, wiiw)

  • Niko Korpar

    (The Vienna Institute for International Economic Studies, wiiw)

  • Sebastian Leitner

    (The Vienna Institute for International Economic Studies, wiiw)

  • Bernhard Moshammer
  • Ondřej Sankot
  • Bernd Christoph Ströhm

    (The Vienna Institute for International Economic Studies, wiiw)

  • Maryna Tverdostup

    (The Vienna Institute for International Economic Studies, wiiw)

  • Zuzana Zavarská

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

The EU member states of Central Eastern Europe (EU-CEE) have experienced rapid convergence in the decades following their EU accession, and have built up strong export-oriented manufacturing sectors boosted by foreign direct investment inflows. While this growth model has brought many positives, there are indications that it is hitting its limits. Endogenous limits to EU-CEE’s growth model are exacerbated by exogenous challenges of the ‘twin’ (green and digital) transitions, and the fallout of the pandemic and Russian invasion of Ukraine. This reinforces the imperative for EU-CEE to transition to a more innovation-driven, new growth model, enabled by a comprehensive industrial policy. However, the EU-CEE countries have not only lacked a stable and strategic approach to industrial policy in their development paths, but also find themselves in a unique position due to EU membership. As a result, innovation and industrial policies are underdeveloped in the region. Based on an in-depth analysis of the industrial landscape and the industrial policy environment of the region, we propose eight pillars for creating a EU-CEE version of the entrepreneurial state.

Suggested Citation

  • Alexandra Bykova & Rumen Dobrinsky & Richard Grieveson & Maciej J. Grodzicki & Doris Hanzl-Weiss & Gabor Hunya & Niko Korpar & Sebastian Leitner & Bernhard Moshammer & Ondřej Sankot & Bernd Christoph , 2023. "Industrial Policy for a New Growth Model: A Toolbox for EU-CEE Countries," wiiw Research Reports 469, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:rpaper:rr:469
    as

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    References listed on IDEAS

    as
    1. Michaela Trippl & Elena Zukauskaite & Adrian Healy, 2020. "Shaping smart specialization: the role of place-specific factors in advanced, intermediate and less-developed European regions," Regional Studies, Taylor & Francis Journals, vol. 54(10), pages 1328-1340, October.
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    More about this item

    Keywords

    industrial policy; EU-CEE; convergence; transition; green; digital;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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