Unable to innovate or just bad circumstances? Comparing the innovation system of a state-led and market-based economy
Veröffentlichungsdatum
2021-12-16
Autoren
Zusammenfassung
State socialism failed due to its inner contradictions. Despite huge investments in R&D-
intensive industries, the soviet-type economy collapsed in 1989 in Eastern Germany,
and the market-based system in the Western part prevailed. We compare the two parallel existing innovation systems in Germany to shed light on the success and failure of the state-led innovation system. Based on newly created indicators from archive data we show in a natural experiment setting that modernization efforts in relation to GDP was much bigger in the socialist as compared to the market economy in the last decades.These achievements, however, could not fully unfold in favor of economic growth due to obstacles related to the setting of research priorities, innovation incentives, and knowledge flow.
intensive industries, the soviet-type economy collapsed in 1989 in Eastern Germany,
and the market-based system in the Western part prevailed. We compare the two parallel existing innovation systems in Germany to shed light on the success and failure of the state-led innovation system. Based on newly created indicators from archive data we show in a natural experiment setting that modernization efforts in relation to GDP was much bigger in the socialist as compared to the market economy in the last decades.These achievements, however, could not fully unfold in favor of economic growth due to obstacles related to the setting of research priorities, innovation incentives, and knowledge flow.
Schlagwörter
Comparative economic systems
;
natural experiment
;
innovation system
;
Germany
Institution
Fachbereich
Dokumenttyp
Bericht, Report
Zeitschrift/Sammelwerk
Band
2111
Heft
Bremen Papers on Economics & Innovation
Seitenzahl
26
Zweitveröffentlichung
Nein
Sprache
Englisch
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Name
Hipp et al. 2021_Unable to innovate.pdf
Size
359.22 KB
Format
Adobe PDF
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