ABSTRACT
This part introduction presents an overview of the key concepts discussed in the subsequent chapters. The part looks at the chances for the emergence of new innovation systems. It argues that, in order to integrate in a European and global economic environment, it is necessary for Central and Eastern Europe countries to renew their production by innovating. The part shows that knowledge-based development is not only a matter of pushing forward high-tech industries, but rather one of incorporating new knowledge in as many industries as possible. It outlines the economic system of the socialist countries with its centralised production and trade patterns isolated these countries from the reality of the world markets. The part analyses the situation of the Baltic countries with respect to their recent trade structures and comes to the conclusion that the export structure has changed substantially from technology-intensive goods to technologically simple, raw material based products.
