Structural Change and Economic Dynamics 10 (1999) 277–320

This paper explores patterns of transformation of socialist S&T systems into postsocialist systems of innovation and their determinants. First, we reinterpret the socialist period from a systems of innovation perspective by revisiting the socialist S&T system and by pointing to its general features as well as to its national and sectoral variations. Second, we develop a conceptual model to help to understand the factors that are determining the emergence of systems of innovation. Systems of innovation in CEE are being shaped through the interaction of micro, sectoral, national and regional determinants. At present, sectoral differences and micro-specific determinants seem to be the strongest in this process. The process of development and selection of network organisers is at the core of the emergence of systems of innovation in central and eastern Europe (CEE). The most active network organisers are foreign firms. New production and innovation networks, especially in central Europe, are most often foreign-led. 1Research which formed the basis for this paper is part of the project ‘Restructuring and re-integration of S&T systems of economies in transition’ funded by the EC DG XII Targeted Socio Economic Research Programme. Previous versions of this paper were presented at the TSER project workshop at Sussex University (June 1997), ASEAT Conference at UMIST Manchester (September 1997) and at the Annual Conference of the European Association for Evolutionary Political Economy (Athens, November 1997). I am grateful to Birgit Andersen, Jan Annerstedt, Keith Pavitt, Werner Meske, Christian von Hirschhausen and three anonymous referees for valuable comments on the previous versions of this paper. However, all remaining errors remain my responsibility. Structural Change and Economic Dynamics 10 (1999) 277–320