ICT modernization in Central and Eastern Europe: A Schumpeterian catching up perspective

The paper characterizes main trends in ICT implementation and diffusion in the CEE countries in terms of market volume, economic development and ICT trade integration within the EU market. The analysis reveals a gradual closing up of the technology gap in ICT sector between the CEE and the 'old' EU countries. The focus is on the relationship between ICT expenditure, NRI index, vs GDP per capita, competitiveness and productivity. The evolution of ICT development trajectory is traced analysing the changing pattern of ICT trade between the CEE countries and the EU. The impact of the current crisis on the structural adjustment of the CEE ICT sector is assessed from the perspective of Schumpeterian technology gap and catching up. © 2013 Springer-Verlag Berlin Heidelberg.