Why do we need a theory and metrics of technology upgrading?

This paper discusses why we need theory and metrics of technology upgrading. It critically reviews the existing approaches to technology upgrading and motivates build-up of theoretically relevant but empirically grounded middle level conceptual and statistical framework which could illuminate a type of challenges relevant for economies at different income levels. It conceptualizes technology upgrading as three dimensional processes composed of intensity and different types of technology upgrading through various types of innovation and technology activities; broadening of technology upgrading through different forms of technology and knowledge diversification, and interaction with global economy through knowledge import, adoption and exchange. We consider this to be necessary first step towards theory and metrics of technology upgrading and generation of more relevant composite indicator of technology upgrading

Unfinished Europe : transition from communism to democracy in central and eastern Europe

The Berlin Wall collapsed a quarter of a century ago. This anniversary led to publication of studies about the success of Central and East European transformation. Some of them maintain that the region became ‘normal,' and nearer to their Western neighbors. In reality, the region still belongs to the periphery of Europe with a mostly dual economy and low level of income. Modern sectors and the entire banking industry are subsidiaries of Western multinationals. The political system is often authoritarian. Democratic forms often cover non-democratic contents. Corruption, tax evasion and other symptoms of peripheral political behavior are quite common. Transformation is so far not accomplished and will certainly require two or three generations to achieve