R&D team productivity in Eastern and Western European countries

The present study by Robert Keller, Ben Kedia and Scott Julian suggests that R&D teams in Eastern European countries can be just as productive as those in Western Europe. Given the substantially lower salaries for scientists and engineers in Eastern Europe, attractive opportunities exist for the location of R&D and engineering facilities in these countries by Western high-technology firms. Additional advantages include enhanced access to potentially large and lucrative markets, and the ability to transfer technology to manufacturing plants in Eastern Europe. 'Going East', however, may entail problems due to bureaucratic structures often found in the East, a lack of experience with speed-to-market organization designs, and riskaverse management.