Eastern European firms are attracting their fair share of investors, and some are wooing --who else?-- China. Though the record varies across the region, solid performances amid increasingly political stability is the norm, with some anxious questions being raised by investors, in some cases on the extent of governance and pace of reforms. What's striking, however, is the absence of reports on innovations --especially set against the seeming deluge of changes in global business models initiated by firms in Asia.
Poland, the Czech Republic, Hungary, Slovakia, Slovenia, and Croatia represent an investor-friendly business environment characterized by political stability, proximity to other European markets, and skilled labor, an Ernst & Young report says. Romania is not doing as well on reforming its business environment, prompting requests by American, British, and Canadian investors for changes in taxation policies, the Bucharest Daily News says. Bulgaria, meanwhile, is beefing up its commercial ties with China and expanding export opportunities for its high tech, pharmaceutical, and energy sectors.
This is admittedly a cursory review of the most recent Eastern European business news. It is certainly not enough to draw any conclusion about where the region's firms ft in the global innovations picture. However, a recent article in Silicon.com is telling. It notes that a survey of companies found a "general trend of innovation moving East" away from Europe, to China and India. More than three-quarters of new research and development sites to be set up over the next three years will be in the latter two countries, the Booz Allen Hamilton/Insead study said.
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