A Two-Tier or Multi-Tier Europe? Assessing the Innovation Capacities of Central and East European Countries in the Enlarged EU

This article assesses the innovation capacities of the candidate central and east European countries (CEECs) and the countries of the EU by using a new framework for measuring national innovation capacity (NIC), based on 25 indicators. Based on regression and cluster analysis the article shows that NIC in the enlarged EU does not follow a simple east-west divide. The wider Europe is structured into three groups of countries, and CEECs fall into two, the less-developed and medium-developed EU groups. NICs in the enlarged EU are assessed across four dimensions of capacity: absorptive, R&D, diffusion and demand. In each of these dimensions a two- to three-tiering of countries is observed, which goes beyond a simple east-west pattern. The results of this assessment have important implications for new Member States and candidate countries, as well as for the EU policy towards structural assistance. Copyright Blackwell Publishing Ltd 2004.