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Innovation and economic crisis in transition economies

Author

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  • Katharina Friz

    (University of Bremen, Faculty of Business Studies and Economics)

  • Jutta Günther

    (University of Bremen, Faculty of Business Studies and Economics)

Abstract

Based on Schumpeterian theoretical considerations, this paper investigates the innovation behavior of firms during the severe economic crisis of the year 2008/2009. It focuses on transition countries of Central and Eastern Europe and Central Asia, which have completely restructured their innovation systems through the course of transition from planned to market economies a relatively short time ago. As a result of the crisis, we observe a strong decline of innovation activity in all transition economies. In line with the literature, there is, however, empirical evidence for both creative destruction as well as creative accumulation. This underlines two key findings: firstly, the universality and durability of Schumpeterian assumptions, and secondly, a call for anti-cyclical innovation policy.

Suggested Citation

  • Katharina Friz & Jutta Günther, 2021. "Innovation and economic crisis in transition economies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(4), pages 537-563, December.
    • Handle: RePEc:spr:eurasi:v:11:y:2021:i:4:d:10.1007_s40821-021-00192-y
    DOI: 10.1007/s40821-021-00192-y
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    More about this item

    Keywords

    Innovation behavior; Economic downturn; Transition countries;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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