Differences in economic development in Central and Eastern Europe over the last 20 years

The process of transition and growth in Central and Eastern Europe (CEE) provides interesting insights, considering the countries' historical relationship with the Soviet Union. The 20 years after the Eastern enlargement of the European Union show an integrative power within the Single Market. However, due to the complex development paths of CEE countries, the question regarding the factors influencing their economic performance arises. This paper considers the innovation and institutional factors, e.g. innovation system performance, institutional development and political practices, that influence the economic development of CEE countries. It also looks at the differences in the effects of these factors. The analysis is performed for 37 European countries for the period from 2000 to 2020. The results reveal the importance of innovation and institutional factors, which may have special implications for the development of non-EU CEE countries