Book contents
- Frontmatter
- Dedication
- Contents
- Chapter 16 The Economics of Reindeer Herding: Saami Entrepreneurship between Cyclical Sustainability and the Powers of State and Oligopolies
- Chapter 17 European Integration, Innovations and Uneven Economic Growth: Challenges and Problems of EU 2005
- Chapter 18 Institutionalism Ancient, Old and New: A Historical Perspective on Institutions and Uneven Development
- Chapter 19 European Eastern Enlargement as Europe’s Attempted Economic Suicide?
- Chapter 20 The Economics of Failed, Failing and Fragile States: Productive Structure as the Missing Link
- Chapter 21 Emulation vs. Comparative Advantage: Competing and Complementary Principles in the History of Economic Policy
- Chapter 22 The Terrible Simplifers: Common Origins of Financial Crises and Persistent Poverty in Economic Theory and the New ‘1848 Moment’
- Chapter 23 Industrial Restructuring and Innovation Policy in Central and Eastern Europe since 1990
- Chapter 24 Capitalist Dynamics: A Technical Note
- Chapter 25 Neo-Classical Economics: A Trail of Economic Destruction
- Chapter 26 Modernizing Russia: Round III. Russia and the Other BRIC Countries: Forging Ahead, Catching Up or Falling Behind?
- Chapter 27 Economics and the Public Sphere: The Rise of Esoteric Knowledge, Refeudalization, Crisis and Renewal
- Chapter 28 Three Veblenian Contexts: Valdres, Norway and Europe; Filiations of Economics; and Economics for an Age of Crises
- Chapter 29 Civilizing Capitalism: “Good” and “Bad” Greed from the Enlightenment to Thorstein Veblen (1857–1929)
- Chapter 30 Failed and Asymmetrical Integration: Eastern Europe and the Non-financial Origins of the European Crisis
- Chapter 31 Renewables, Manufacturing and Green Growth: Energy Strategies Based on Capturing Increasing Returns
- Chapter 32 Financial Crises and Countermovements: Comparing the Times and Attitudes of Marriner Eccles (1930s) and Mario Draghi (2010s)
- Chapter 33 The Inequalities That Could Not Happen: What the Cold War Did to Economics
- Chapter 34 Industrial Policy: A Long-term Perspective and Overview of Theoretical Arguments
- Index
Chapter 23 - Industrial Restructuring and Innovation Policy in Central and Eastern Europe since 1990
Published online by Cambridge University Press: 13 April 2024
- Frontmatter
- Dedication
- Contents
- Chapter 16 The Economics of Reindeer Herding: Saami Entrepreneurship between Cyclical Sustainability and the Powers of State and Oligopolies
- Chapter 17 European Integration, Innovations and Uneven Economic Growth: Challenges and Problems of EU 2005
- Chapter 18 Institutionalism Ancient, Old and New: A Historical Perspective on Institutions and Uneven Development
- Chapter 19 European Eastern Enlargement as Europe’s Attempted Economic Suicide?
- Chapter 20 The Economics of Failed, Failing and Fragile States: Productive Structure as the Missing Link
- Chapter 21 Emulation vs. Comparative Advantage: Competing and Complementary Principles in the History of Economic Policy
- Chapter 22 The Terrible Simplifers: Common Origins of Financial Crises and Persistent Poverty in Economic Theory and the New ‘1848 Moment’
- Chapter 23 Industrial Restructuring and Innovation Policy in Central and Eastern Europe since 1990
- Chapter 24 Capitalist Dynamics: A Technical Note
- Chapter 25 Neo-Classical Economics: A Trail of Economic Destruction
- Chapter 26 Modernizing Russia: Round III. Russia and the Other BRIC Countries: Forging Ahead, Catching Up or Falling Behind?
- Chapter 27 Economics and the Public Sphere: The Rise of Esoteric Knowledge, Refeudalization, Crisis and Renewal
- Chapter 28 Three Veblenian Contexts: Valdres, Norway and Europe; Filiations of Economics; and Economics for an Age of Crises
- Chapter 29 Civilizing Capitalism: “Good” and “Bad” Greed from the Enlightenment to Thorstein Veblen (1857–1929)
- Chapter 30 Failed and Asymmetrical Integration: Eastern Europe and the Non-financial Origins of the European Crisis
- Chapter 31 Renewables, Manufacturing and Green Growth: Energy Strategies Based on Capturing Increasing Returns
- Chapter 32 Financial Crises and Countermovements: Comparing the Times and Attitudes of Marriner Eccles (1930s) and Mario Draghi (2010s)
- Chapter 33 The Inequalities That Could Not Happen: What the Cold War Did to Economics
- Chapter 34 Industrial Policy: A Long-term Perspective and Overview of Theoretical Arguments
- Index
Summary
Introduction
For a long time, economic development in Central and Eastern European (CEE) countries has been seen by most analysts in both academic and policy circles as a largely positive if not a very positive story. For example, at the end of 2005, Business Week ran a cover story titled ‘Central Europe – Rise of a Powerhouse’. It has become commonplace to argue that the success of CEE development is mainly due to neo-liberal economic policies (liberalized markets, balanced public budget, price stability, low tax burden and strongly market-oriented reforms in all socio-economic sectors) pursued by these countries since the early 1990s. In other words, CEE countries have been poster countries for Washington Consensus policies. Indeed, as we show below, during the entire decade of the 1990s, industrial restructuring and embryonic innovation policies in CEE were largely dominated by Washington Consensus thinking. We aim to show that, first, these policies have been a double-edged sword: on the one hand enabling fast and furious industrial restructuring while, on the other hand, locking CEE economies into economic activities with low value added/productivity growth and thus undermining future sustainable growth. However, the impact of accession into the European Union (EU) has been equally pivotal for industrial restructuring and innovation policy making in CEE countries in the 2000s and this process can be summed up as a strong Europeanization of innovation policy in CEE. We aim to show, second, that Europeanization has been largely a double-edged sword for CEE countries. Since joining the EU in 2004 or 2007, and already during the accession process, there is a strong change in innovation policies in many CEE countries towards a much more active role of the state. In this change there is a clear and strong role of EU's structural funding, particularly the negotiations and planning that comes with it. However, these changes come with specific problems: first, there is an over-emphasis in emerging CEE innovation policies on a linear under-standing of innovation (from lab to market) that is based on the assumption that there is a growing demand from industry for R&D (which is not the case because of the structural changes that took place in the 1990s via the Washington Consensus policies); and, second, increasing usage of independent implementation agencies in an already weak administrative capacity environment lacking policy skills for networking and long-term planning.
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- The Other Canon of EconomicsEssays in the Theory and History of Uneven Economic Development, pp. 677 - 708Publisher: Anthem PressPrint publication year: 2024