Challenges for European Innovation Policy

Challenges for European Innovation Policy

Cohesion and Excellence from a Schumpeterian Perspective

Edited by Slavo Radosevic and Anna Kaderabkova

This book uniquely applies the Schumpeterian innovation policy perspective to the countries of Central and Eastern Europe. A broadly defined framework of the science, technology, innovation and growth system underpins the empirical and conceptual analysis of the critical issues including demand, FDI, finance and education.

Chapter 7: Innovation in EU CEE: The Role of Demand-based Policy

Jakob Edler

Subjects: economics and finance, economics of innovation, evolutionary economics, innovation and technology, economics of innovation

Extract

Jakob Edler* 7.1 INTRODUCTION The 2007 Innovation Report for Bulgaria, which is based on a survey of highly innovative Bulgarian companies, draws conclusions about how demand is a major bottleneck: Together with their strong commitment to innovation, the companies from this study mention a list of problems which explain why the number of innovative enterprises in Bulgaria is so low. In general, there is limited local demand for innovation products. Bulgarians do not easily accept new technologies and even those companies that recognize the need for innovation and modernisation of production and would like to invest in R&D have problems realizing their goals. (Ministry of Economy and Energy, 2007: 94) This is followed a couple of lines later with a request for supply-side measures, but not support for marketing: ‘In summary, the main barriers before innovative companies are the insufficient human resources, the lack of financial mechanisms for high-risk projects, the lack of resources for active marketing and tax incentives as well as the need to create a favourable environment for start-up companies’ (Ministry of Economy and Energy, 2007: 94–95). These quotes are illustrative of the poor demand for innovation in many parts of the European Union (EU) Central and East European (CEE) economies, and show that although there is some recognition of a bottleneck, the solution is most often sought in supply-side measures. The economies and the innovation systems of the CEE countries are still in a state of transition and catch-up. In the transformation of their...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information