In: Béla Galgóczi and Jan Drahokoupil (eds.): Condemned to be left behind ? Can Central and Eastern Europe emerge from its low-wage model? Brussels: ETUI, pp. 133-152. (2017)
This publication examines the CEE growth model from different angles in search for signs of new drivers of sustainable growth and wage convergence. Economic growth has been picking up in the last two years and investment has increased with FDI and EU funds playing the key role. There is however not much evidence that the region is about to embark itself on a qualitative shift in its growth model. R&D both public and private are among the lowest in the EU, innovation propensity is low and the high rate of internationalisation of the region in production networks is not matched with high internationalisation of R&D and innovation. Labour shortages and the scarcity of skilled labour limit economic development perspectives and the region does not seem to be prepared for the digital age.