From Transition to Innovation: Policy Issues in a Knowledge Based Economy

This paper contains a general vision of the main issues on innovation policies in East European new member countries and candidate countries. It is based both on the data taken from the main European benchmarking studies on innovation perspectives, and on the direct experience of advisors who worked in East European pilot countries (Slovenia). This paper focuses on the problems arising from the encounter of European innovation policies and local culture and governance structures in these countries. This situation shows that the innovation phase, following transition, generally calls for a further tuning of EU innovation policies in these countries. In order to develop effective market spin-offs from innovation policies, greater attention should be given to triggering bottom-up policies at regional level by reducing decision-making centralism; lowering the risk of imitative and trend-oriented policies; supporting the birth of new enterprises besides backing the existing ones; developing mostly software rather than hardware policy components. All of this should fit in a general framework recognising the central role of individuals – and thus of culture, starting from entrepreneurial culture – within a knowledge-based innovation process. The recent Slovenian action plan for innovation is included as an example of a strategic plan able to spotlight these main issues.