Radosevic, S; (2007) Research and Development and Competitiveness in South Eastern Europe: Asset or Liability for EU Integration? (Economics Working Papers 75). Centre for the Study of Economic and Social Change in Europe, SSEES, UCL: London, UK.

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Abstract

This paper explores the relationship between research and development (R&D) and competitiveness of the SEE economies from the perspective of the EU integration and the EU as a knowledge based economy. Specifically, the paper addresses the question of whether SEE is a potential asset or a liability in this process. SEE countries are quite diverse in terms of levels of competitiveness, with visible effects on the role of R&D which is confirmed by analysis of the demand and supply factors of R&D. Although tentative, results show that innovation policy that takes account of the supply and demand side factors of R&D is essential to knowledge based growth in the SEE economies. This poses some limits to traditionally defined S&T policy as a sectoral activity and calls for new approaches, which are discussed in the paper.

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