FDI, R&D and Human Capital in Central and Eastern European Countries

The recent literature dealing with the determinants of Foreign Direct Investments (FDI) has increasingly emphasised the importance of technological aspects, as both attractive factors and FDI-related technological transfer effects. Focusing on the second perspective, this paper explores the theoretical and empirical relationships between innovative inputs (particularly FDI) and innovative outputs in the EU-27 countries, focusing in particular on the Central and Eastern European countries (CEECs). Findings provide evidence of strong East/West specificities, but also of marked heterogeneity within the CEECs, thus supporting our approach, which emphasises complexity and the specificities of productive and economic conditions.