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Innovation is the key to productivity growth and prosperity. Most empirical cross-country analysis of the determinants of innovation focus mainly on developed countries. The objective of this study is to fill this gap in the research and analyze the determinants of innovation in transition countries of Eastern Europe and the Former Soviet Union. It develops a model of innovation which incorporates the role of both firm, industry and country characteristics. The study uses large representative surveys (Business Environment and Enterprise Performance Surveys) to test this model and to examine whether and how firm, industry and country characteristics matter for innovation. In addition to information on firm size, access to finance, export involvement, and market concentration, these surveys explore impact of formal higher education and workforce training on the likelihood of a firm innovating.

Table of Contents

  • Chapter One

    Introduction

  • Chapter Two

    Determinants of Innovation in Transition Countries

  • Chapter Three

    Do Higher Levels of Education Raise Earnings in Russia?

  • Chapter Four

    Conclusions and Implications

Research conducted by

This document was submitted as a dissertation in April 2010 in partial fulfillment of the requirements of the doctoral degree in public policy analysis at the Pardee RAND Graduate School. The faculty committee that supervised and approved the dissertation consisted of Krishna Kumar (Chair), Charles Wolf, Jr., and Nicholas Burger. Hartmut Fischer of the University of San Francisco was the external reader for the dissertation.

This report is part of the RAND Corporation dissertation series. Pardee RAND dissertations are produced by graduate fellows of the Pardee RAND Graduate School, the world's leading producer of Ph.D.'s in policy analysis. The dissertations are supervised, reviewed, and approved by a Pardee RAND faculty committee overseeing each dissertation.

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