| Abstract: | This paper argues that firms in the new German Lander must rapidly adopt an industrial innovation strategy if they are to complete in the Single European Market and regain lost markets in Central and Eastern Europe. The new Lander have experienced a major de-industrialization and relatively slow new firm formation. As most existing firms lack innovative potential, progress calls for public support. This paper outlines the necessary elements of a development strategy aimed at boosting innovation in former East Germany. |
