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The Computer Industry in East and West: Do Eastern European Countries Need a Specific Science and Technology Policy?

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  • Jürgen Bitzer

Abstract

National science and technology (S&T) systems are mentioned, in politics as well as in science, as a condition for the competitiveness of domestic high technology industries. An active S&T policy has, therefore, great importance for governments. Eastern European countries see, in an active S&T policy, the key for the creation of a new computer industry, which collapsed with socialism. With an industrial economic analysis of the market segments: PC, workstation, mini and mainframe computer and supercomputers this hypothesis is rejected for Eastern Europe. It is shown that the Eastern European computer manufacturers are present only in the PC segment. The analysis of production conditions, competition axes used and the computer market structure shows further that domestic computer manufacturers are well positioned in the PC business and have no need for a national S&T system. They have quickly built up global supplier networks which enable them to use foreign S&T systems. Therefore, with the current conditions on the computer markets in Eastern Europe, setting up national S&T systems for computer technology is not required.

Suggested Citation

  • Jürgen Bitzer, 1997. "The Computer Industry in East and West: Do Eastern European Countries Need a Specific Science and Technology Policy?," Discussion Papers of DIW Berlin 148, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp148
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    References listed on IDEAS

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    Cited by:

    1. Radosevic, Slavo, 1999. "Transformation of science and technology systems into systems of innovation in central and eastern Europe: the emerging patterns and determinants," Structural Change and Economic Dynamics, Elsevier, vol. 10(3-4), pages 277-320, December.
    2. Kesidou, Effie & Romijn, Henny, 2008. "Do Local Knowledge Spillovers Matter for Development? An Empirical Study of Uruguay's Software Cluster," World Development, Elsevier, vol. 36(10), pages 2004-2028, October.
    3. DIEZ, Jose Ignacio & PASCIARONI, Carolina, 2022. "Analyzing The Software Sector In Bahia Blanca (Argentina) Using The Structure-Behavior-Performance And Capabilities Approach," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 22(1), pages 19-36.

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    More about this item

    JEL classification:

    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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