wiiw warns EU-CEE countries, including Romania, need innovation to exit middle-income trap
The Central and Eastern European EU members (EU-CEE) have undergone an impressive process of economic catch-up since the early 2000s, but the previously successful model of taking over labour-intensive production steps as an ‘extended…
iulian ernst · Journalist
· Updated · 2 min read
The Central and Eastern European EU members (EU-CEE) have undergone an impressive process of economic catch-up since the early 2000s, but the previously successful model of taking over labour-intensive production steps as an ‘extended workbench’ for Western companies is increasingly nearing its limits and the countries need a new industrial policy worthy of the name to exit the middle-income trap, according to a report published by the Vienna Institute for International Economic Studies (wiiw).
Such a European-coordinated industrial policy, tailored to the specific needs and strengths of each country, can only succeed with technological innovation, the wiiw report furthers.
