According to the Economist Intelligence Unit (EIU), multinationals have been the key driver of Central European business innovation in recent years. While this innovation has brought benefits, it has not helped local companies, nor has it prepared the region for the challenges ahead.
In fact, a dependence on multinational innovation has left Central Europe’s economies vulnerable, according the EIU report entitled ‘A Time For New Ideas: Innovation in Central Europe‘, sponsored by Oracle Corporation. While a handful of local SMEs have managed to innovate, the region faces a shortage of talent and a lack of support for innovation among local governments.
The EIU surveyed 370 local and foreign executives operating in the region, and conducted in-depth interviews with company executives, academics and policymakers. The author of the report, Paul Lewis (Managing Director, EIU Executive Briefing) summarized the findings at the program launch in Romania this Summer:
The key findings of the EIU report:
• Innovation is essential for sustainable growth
• MNC innovation brings few benefits to domestic enterprises
• The CEE region has underperformed and will continue to do so …
• … unless more is done to boost inputs and improve the innovation environment
• Local SMEs have innovated and exported successfully
• Talent-related issues are a major concern
• Innovative firms have mixed views about the ability of government to help
The report contains a wealth of information about the performance of three CENTROPE countries (Hungary, Czech and Slovakia) as well as the drivers and barriers to innovation. I would encourage all CITT participants to download the report, review your country’s progress, and consider how our efforts may be a catalyst for change in the CENTROPE region.
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I think the report presents realistic picture on regional situation on innovation. However we should see these results to be connected with transition period the region is going through. I guess innovation and education was not the priority for governments. This is also quite visible in the field of new start-up ideas/enterprises. For the second year I run a national NovaTech business plan contests in Slovakia - part of Intel Berkely worldwide entrepreneurship challenge. I must say that I came across very few projects, business plans, ideas that I would tag with words quality, feasible, good team, innovative. I guess the root cause is lack of talent and competencies, risk taking mentality and commitment. To change this takes a lot of time and includes changes along all dimensions of innovation system including legislation, state support, educational system, societal values.