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Innovation has been a driving force of post-communist economic transition of central and eastern Europe (CEE) over the past two decades. Most of this has come not from locally owned firms but from the investments of MNCs, on which local economies have come to rely for new ideas and technology. This is particularly so for the development of new products, the main focus of this research paper. Such dependence leaves the region's economies vulnerable, and to overcome this governments, universities and local businesses will have to work together to improve the environment for innovation.
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