A Rough Road from Transformation to Innovation

What is it about?

In light of the perceived limited impact of technological advancements on the economic progress of nations, scholars are now turning their attention towards exploring non-economic factors that influence innovation. This article presents a comprehensive literature review that seeks to identify the specific characteristics of European postcommunist transition societies that contribute to their low innovation capacity. The study contends that factors such as social organization, institutional structure, and public trust play a crucial role in shaping innovation outcomes, and should be considered in conjunction with traditional economic analyses. The author underscores the notion that the prevalent mode of social interaction in postcommunist nations is characterized by close-knit and informal group dynamics. While these cohesive networks provide a sense of security for their members, they may stifle innovative thinking. Empirical evidence presented in the text suggests that despite possessing high levels of human capital, postcommunist countries often lack social capital, leading to innovation policies that mimic the shortcomings of more developed nations, such as an overemphasis on the impact of research and development activities on innovation outcomes.

Featured Image