UCL Discovery

Abstract

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.