A Rough Road from Transformation to Innovation

Abstract This article addresses the question of which specific features of European postcommunist transition societies determine their low innovation capacity. It suggests that such factors as social organisation, institutional set-up and public trust must be considered alongside economic analyses of innovation. The author draws the conclusion that the dominant pattern of social collaboration in postcommunist countries is close and informal group ties. Though homogenous and tightly knit groups create a safe environment for its participants, they scarcely boost innovative attitudes. The empirical results revised in the text suggest that, in postcommunist countries, the high level of human capital does not translate into social capital and innovation policy in these countries imitates pitfalls of developed countries such as overestimation of the influence of R&D activity on innovation activity.