New World Bank report recommends actions for igniting innovation in the Emerging Europe region
TIRANA, Oct. 19 – A new World Bank report has called on governments of Emerging Europe region to take dramatic steps to position itself closer to the scientific and technological frontiers and regain the lead in regional or even global settings. Innovation and technology absorption are widely recognized as main sources of economic growth for emerging and advanced economies alike. Governments can play an important role in bringing innovation and technology to markets in Emerging Europe and Central Asia (ECA), but badly designed or badly implemented government interventions can further hamper the development of an innovative and entrepreneurial culture among businesses and research communities, says the “Igniting Innovation: Rethinking the Role of Government in Emerging Europe and Central Asia” report. “We see innovation as a possible catalyst for revitalizing post-transition economies in the ECA region, which was hit hard by the recent financial and economic crisis,” said Gerardo Corrochano, World Bank Sector Director, Europe and Central Asia, Private Sector Development in his opening remarks during the official launch of the report. “We hope that the report will help governments in the region avoid pitfalls and implement policies that will effectively make innovation and technology adoption a central part of the national development and growth strategies.” The region has a tradition of excellence in learning and basic research which can provide the base for future commercial innovation. However, going from a strong research foundation to economically productive commercial applications remains a critical missing link. The legacy of central planning has yet to be fully resolved, as many of the public research and development (R&D) institutes are still operating as standalone entities, often disconnected from the realities of the markets. The new report explores ways in which governments can build on the region’s strong research foundation to support commercialization. It analyzes four aspects of the innovation system – international collaboration, research and development institutions, government financial support instruments, and the investment climate. In its new growth agenda for Albania, the World Bank has recently suggested that Albania can sustain growth in the future by implementing a new generation of policies and reforms focused mainly on education and skills, ICT development, the energy sector, and better governance and rule of law. “Reaching the upper middle income country status in a relatively short time is a major achievement. It also poses new challenges. Under this new status Albania has to compete with low-wage poorer countries as well as with rich country innovators,” said Kseniya Lvovsky earlier.
