IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/7739.html
   My bibliography  Save this paper

Drivers of national innovative systems in transition: an Eastern European cross-country analysis

Author

Listed:
  • Krammer, Marius /S.S.

Abstract

Innovation plays a crucial role in determining today’s economic growth patterns. But what enables some countries to innovate more than others? This paper employs in premiere a panel of sixteen Eastern European countries throughout their transition period exploring empirically the drivers of their innovative capacity using as a proxy the number of patent granted in the USA. The econometric analysis confirms the importance of R&D commitments and innovative tradition in the form of existing knowledge stock. Increased trade openness and intellectual rights protection determine higher international patenting, while the transition specific factors, such as structural industrial distortions or aggregated output drops, have a significant negative influence. Governmental funding and research performance of universities encourage more innovation at the technological frontier, while the business R&D funding in Eastern Europe is negatively correlated with it.

Suggested Citation

  • Krammer, Marius /S.S., 2008. "Drivers of national innovative systems in transition: an Eastern European cross-country analysis," MPRA Paper 7739, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:7739
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/7739/1/MPRA_paper_7739.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/7820/1/MPRA_paper_7820.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Martin Srholec, 2010. "A Multilevel Approach to Geography of Innovation," Regional Studies, Taylor & Francis Journals, vol. 44(9), pages 1207-1220.
    2. Raiser, Martin & Schaffer, Mark & Schuchhardt, Johannes, 2004. "Benchmarking structural change in transition," Structural Change and Economic Dynamics, Elsevier, vol. 15(1), pages 47-81, March.
    3. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    4. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 1-37.
    5. Waguespack, David Matthew & Birnir, Johanna Kristin & Schroeder, Jeff, 2005. "Technological development and political stability: Patenting in Latin America and the Caribbean," Research Policy, Elsevier, vol. 34(10), pages 1570-1590, December.
    6. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    7. Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
    8. Hu, Mei-Chih & Mathews, John A., 2005. "National innovative capacity in East Asia," Research Policy, Elsevier, vol. 34(9), pages 1322-1349, November.
    9. J.S. Eades, 2005. "East Asia," Chapters, in: James G. Carrier (ed.), A Handbook of Economic Anthropology, chapter 34, Edward Elgar Publishing.
    10. Sunil Kanwar & Robert Evenson, 2003. "Does intellectual property protection spur technological change?," Oxford Economic Papers, Oxford University Press, vol. 55(2), pages 235-264, April.
    11. Zoltan J. Acs & Luc Anselin & Attila Varga, 2008. "Patents and Innovation Counts as Measures of Regional Production of New Knowledge," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 11, pages 135-151, Edward Elgar Publishing.
    12. Slavo Radosevic, 2004. "A Two‐Tier or Multi‐Tier Europe? Assessing the Innovation Capacities of Central and East European Countries in the Enlarged EU," Journal of Common Market Studies, Wiley Blackwell, vol. 42(3), pages 641-666, September.
    13. Ginarte, Juan C. & Park, Walter G., 1997. "Determinants of patent rights: A cross-national study," Research Policy, Elsevier, vol. 26(3), pages 283-301, October.
    14. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    15. Varsakelis, Nikos C., 2006. "Education, political institutions and innovative activity: A cross-country empirical investigation," Research Policy, Elsevier, vol. 35(7), pages 1083-1090, September.
    16. Walter G. Park, 2002. "Patent Rights and Economic Freedom : Friend or Foe?," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 18(Fall 2002), pages 89-132.
    17. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    18. Radosevic, Slavo & Auriol, Laudeline, 1999. "Patterns of restructuring in research, development and innovation activities in central and eastern European countries: an analysis based on S&T indicators1," Research Policy, Elsevier, vol. 28(4), pages 351-376, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krammer, Sorin M.S., 2009. "Drivers of national innovation in transition: Evidence from a panel of Eastern European countries," Research Policy, Elsevier, vol. 38(5), pages 845-860, June.
    2. Dincer, Oguzhan, 2019. "Does corruption slow down innovation? Evidence from a cointegrated panel of U.S. states," European Journal of Political Economy, Elsevier, vol. 56(C), pages 1-10.
    3. Bulent Guloglu & R. Tekin, 2012. "A Panel Causality Analysis of the Relationship among Research and Development, Innovation, and Economic Growth in High-Income OECD Countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 2(1), pages 32-47, June.
    4. Coe, David T. & Helpman, Elhanan & Hoffmaister, Alexander W., 2009. "International R&D spillovers and institutions," European Economic Review, Elsevier, vol. 53(7), pages 723-741, October.
    5. Chi, Meiqing & Muhammad, Sulaman & Khan, Zeeshan & Ali, Shahid & Li, Rita Yi Man, 2021. "Is centralization killing innovation? The success story of technological innovation in fiscally decentralized countries," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    6. Barbosa, Natália & Faria, Ana Paula, 2011. "Innovation across Europe: How important are institutional differences?," Research Policy, Elsevier, vol. 40(9), pages 1157-1169.
    7. Gao, Wenlian & Chou, Julia, 2015. "Innovation efficiency, global diversification, and firm value," Journal of Corporate Finance, Elsevier, vol. 30(C), pages 278-298.
    8. Harald Badinger, 2008. "Technology- and investment-led growth effects of economic integration: a panel cointegration analysis for the EU-15 (1960-2000)," Applied Economics Letters, Taylor & Francis Journals, vol. 15(7), pages 557-561.
    9. Ang, James B., 2010. "Financial Reforms, Patent Protection, and Knowledge Accumulation in India," World Development, Elsevier, vol. 38(8), pages 1070-1081, August.
    10. Sharma, Abhijit & Sousa, Cristina & Woodward, Richard, 2022. "Determinants of innovation outcomes: The role of institutional quality," Technovation, Elsevier, vol. 118(C).
    11. Samaniego, Roberto M., 2013. "Knowledge spillovers and intellectual property rights," International Journal of Industrial Organization, Elsevier, vol. 31(1), pages 50-63.
    12. Dion, David-Pascal, 2004. "Regional integration and economic development: An empirical approach," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 21, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    13. Pradhan, Rudra P. & Arvin, Mak B. & Bahmani, Sahar & Bennett, Sara E., 2017. "The innovation- growth link in OECD countries: Could other macroeconomic variables matter?," Technology in Society, Elsevier, vol. 51(C), pages 113-123.
    14. Jaap W. B. Bos & Bertrand Candelon & Claire Economidou, 2016. "Does knowledge spill over across borders and technology regimes?," Journal of Productivity Analysis, Springer, vol. 46(1), pages 63-82, August.
    15. Muhammad Ali & Uwe Cantner & Ipsita Roy, 2017. "Knowledge Spillovers Through FDI and Trade: The Moderating Role of Quality-Adjusted Human Capital," Economic Complexity and Evolution, in: Andreas Pyka & Uwe Cantner (ed.), Foundations of Economic Change, pages 357-391, Springer.
    16. James B. Ang & Jakob B. Madsen, 2011. "Can Second-Generation Endogenous Growth Models Explain the Productivity Trends and Knowledge Production in the Asian Miracle Economies?," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1360-1373, November.
    17. Raffaello Bronzini & Paolo Piselli, 2006. "Determinants of long-run regional productivity: the role of R&D, human capital and public infrastructure," Temi di discussione (Economic working papers) 597, Bank of Italy, Economic Research and International Relations Area.
    18. Krammer, Sorin M.S., 2015. "Do good institutions enhance the effect of technological spillovers on productivity? Comparative evidence from developed and transition economies," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 133-154.
    19. Fidel Perez-Sebastian, 2012. "Understanding R&D Policy: Efficiency or Politics?," Review of Economics and Institutions, Università di Perugia, vol. 3(3).
    20. Bronzini, Raffaello & Piselli, Paolo, 2009. "Determinants of long-run regional productivity with geographical spillovers: The role of R&D, human capital and public infrastructure," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 187-199, March.

    More about this item

    Keywords

    National innovative systems; Transitional Economies; Patents; Eastern Europe;
    All these keywords.

    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:7739. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.