(AGENPARL) - Roma, 14 Gennaio 2025 - (AGENPARL) – mar 14 gennaio 2025 Public
https://www.eib.org/en/press/all/2025-007-eib-unveils-new-working-paper-on-innovation-in-cesee-at-invisso-conference-in-vienna
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PRESS RELEASE
2025-007-EN
14 January 2025
EIB unveils new working paper on innovation in CESEE at Invisso Conference in Vienna
· CESEE region has doubled its R&D personnel and increased investments in intellectual property from 10% to 12% over the past decade
· CESEE productivity growth, key to strengthen the competitive position of the region, has outpaced that in North and West EU. Recent trends are showing signs of deceleration
Stimulating innovation across the CESEE region faces numerous challenges, many of which are not unique to the region. These challenges include increasing the availability of the skills necessary for innovation, securing adequate risk capital, adopting cutting-edge technologies, all while improving the overall business environment. Labour shortages are already prompting some firms to shift their innovation activities from the North and West of the EU to the CESEE region, and within the CESEE region to its less developed areas.
“Convergence requires significant support for innovation investments, including increasing R&D and the skills of workers, in CESEE region. That is why, at the EIB, we are committed to supporting the innovation landscape in CESEE countries,” stated Kyriacos Kakouris, Vice President of the EIB. “Our collaboration with local stakeholders and international partners from the public and private sector is essential to overcoming the barriers to innovation and ensuring that the region can compete on a global scale.”
The working paper reveals that businesses in the CESEE region have doubled their R&D personnel and it increased investments in intellectual property from 10% to 12% over the past decade; moreover, labour productivity in the region, at 1.9% per annum, grew significantly more than in North and West Europe over the past decade. However, CESEE economies still face a severe skills shortage. In addition, only eight of the world’s largest 2,500 R&D investors are headquartered in the CESEE region. Germany alone filed nearly 25,000 patents with the European Patent Office in 2023 (compared to only 1,600 in the CESEE region).
The report also highlights that R&D spending in the CESEE region is about half of that in the North and West of the EU, with businesses in CESEE spending only 0.8% of GDP on R&D compared to 1.8% in other regions. Innovation activities in CESEE are largely concentrated in manufacturing, ICT and pharmaceuticals, with significant disparities across firms and geographies. While productivity growth in the region has outpaced that in North and West EU, recent trends are showing signs of deceleration. “Strengthening innovation is crucial for raising living standards and for strengthening the competitive position of the CESEE region,” said Debora Revoltella, EIB Chief Economist. “Our findings underscore the need for targeted policies to improve the availability of skilled labour and secure adequate risk capital (venture capital for instance), which are essential for fostering innovation-driven growth and upgrade the growth model of the region.”
Dashboards included in the paper provide an overview of country-specific innovation characteristics, illustrating how research-intensive sectors contribute significantly to GDP growth across different CESEE countries.
Background information
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.
The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400?000 companies and 5.4 million jobs.
Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.
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