Reinventing the domestic

21 Feb

A recent Erste Bank report says this about Eastern Europe:
“Endogenous sources of productivity will become more important, as the stimulus via FDI and exports may be moderate in the coming years if the crisis drags on. The challenge for Central and Eastern Europe in general is to manage the transition from imported productivity gains to endogenous sources of innovation as drivers of growth.”

In other words: you Eastern dupes, make sure you discover some version of the neo-developmental state to kickstart innovation. Read Bill Janeway and see that what did it most of the time was the state, not heroic venture capitalists. Oh, did we tell you the opposite before the crisis? That it is all best left to the markets? Oh, well….


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