ABSTRACT
The aim of this chapter is to conduct an empirical study of the institutional setup of the knowledge subsystem in Central Eastern and Western Europe. Based on the data provided by the OECD, Eurostat, the ECB and the World Bank, the list of innovation, research and development (R&D) and education indicators has been prepared and used for the purpose of empirical analysis. Based on the subspace clustering method (the ORCLUS algorithm) and the selected set of institutional indicators, the following clusters have been identified. Cluster 1 – “developed innovation oriented” economies – includes the United Kingdom, Ireland, France and Belgium. Cluster 2 is made up of the “developed patent oriented” economies: Germany, Austria, Denmark, the Netherlands, Sweden and Finland. Cluster 3 (or “stuck in the middle” economies) includes Slovenia and Italy. Cluster 4, dubbed “aspiring” economies, encompasses 13 EU economies, including all but one CEE country as well as Greece, Portugal and Spain. We identified two basic types of knowledge subsystems. The first is a developed knowledge subsystem with two variants (oriented at patenting and traineeships, represented by Germany, or oriented at industry and services’ innovation and tertiary education, to be found in the UK). The second type is a developing knowledge subsystem with two variants (average in terms of patenting with a relatively strong traineeship program, such as in Slovenia, or relatively weak in all measures, seen in Bulgaria).
