The Transformation of National Systems of Innovation in Eastern Europe: Between Restructuring and Erosion.

This paper outlines several general processes in Eastern European economies, which are seen as important elements of transformation of their systems of innovation and are evolving between the restructuring and erosion of potentially viable R&D and technology capacities. It is emphasized that the best way to restructure hyper-developed extramural R&D capacities in post-socialist economies is to integrate them into industrial enterprises. If Eastern Europe continues to grow, spin-offs are likely to improve the coherence of their national systems of innovation by creating links between research and production. Privatization alone, if not accompanied by restructuring support, will create new gaps in the knowledge base.