Restructuring of R&d Institutes in Post- Socialist Economies: Emerging Patterns and Issues

INTRODUCTION The growth prospects of individual post-socialist economies are to a great extent constrained by their ability to transform inherited technological capacities from the period of closed economy into assets in the market economy context. In terms of analysis this transformation cannot be reduced on marketisation of old capabilities. Capabilities exist in an institutional context which have to be restructured and in this process market failures become pervasive. The main locus of R&D capabilities in the socialist systems was not in industry but in the 'science and scientific services' sector or R&D institutes. The R&D system itself was over extended because of its closed character and its isolation from industry. Under the new market conditions a deep restructuring is therefore inevitable. How successfully R&D organisations restructure will have an impact on the growth prospects of many sectors and on the economy as a whole.