This paper, published in January 2025 by the European Investment Bank, the Vienna Institute for International Economic Studies, and the Austrian National Bank, examines the state of innovation and competitiveness in Central, Eastern, and South-Eastern European (CESEE) EU countries. It highlights that while these countries have increased their innovation capacity, significant challenges remain, including skills shortages and barriers to commercializing innovative ideas. The research notes the importance of foreign direct investment in driving innovation and productivity, particularly through greenfield investments. Ultimately, the paper recommends policy measures to improve the availability of skilled labor, secure risk capital, and enhance collaboration between academia and industry to support innovation-driven growth in the region.

#MEGA - Make Europe Great Again

This European Central Bank publication examines the challenges facing European competitiveness, emphasizing the critical role of institutions and the necessity for structural reforms. It identifies low productivity growth, burdensome regulations, and demographic shifts as key issues, exacerbated by global tensions. The article argues that boosting productivity through investment, innovation, and digital/green transitions is essential for long-term competitiveness and resilience. Furthermore, it highlights the need for improved institutional frameworks, better infrastructure, enhanced education, and streamlined regulations to foster a more dynamic and competitive European economy.

#MEGA - Make Europe Great Again

A recent policy brief from ECIPE investigates why the European Union's productivity growth has consistently lagged behind the United States. The authors argue that this gap, evident since the 1990s and widening despite some bright spots in Eastern Europe, stems from structural deficiencies in the EU economy. Key factors identified include lower EU investment in R&D and intangible capital, slower business dynamism, and less attraction of foreign direct investment compared to the US. To reverse this trend, the brief recommends that European policymakers should prioritize increasing R&D spending, investing in digital infrastructure and intangible assets, revitalizing the single market, and fostering a more competitive business environment. Ultimately, the analysis aims to pinpoint areas for improvement to help the EU achieve stronger productivity and economic growth.

#MEGA - Make Europe Great Again