Research and Development, Competitiveness and European Integration of South Eastern Europe

This article explores the relationship between research and development (RD) and competitiveness of South East European (SEE) economies from the perspective of European Union (EU) integration. Specifically, the article addresses the question of whether South East Europe is a potential asset or liability to the enlarged EU. SEE countries are quite diverse in terms of levels of competitiveness, with visible effects on the role of RD, which is confirmed by analysis of RD demand and supply factors. Improvements in the national innovation systems of SEE countries have largely taken place through vertical linkages on the supply and demand sides. However, a wider role for RD will depend increasingly on the strength of horizontal linkages within national systems of innovation and their key agentthe local innovative business enterprise sector. This calls for a rethinking of science and technology policy, traditionally defined as a sectoral activity.