This paper deals with the innovation behavior and the R&D activities at the firm level in East Germany. The theoretical and empirical analyses lead to the conclusion that the relatively low level of the R&D intensity in East Germany is a reflex of the relatively weak economy, especially the disadvantages due to the industry structure and the average firm size. However, taken these "disadvantages" on the aggregate level into account a great number of east german companies engage more often in and devote more ressources to R&D than firms in West Germany do. In total, there is no empirical evidence for an innovation and R&D lack at the firm level.

Felder, Johannes and A. Spielkamp (1998), Innovationsstrategien und Forschungsaktivitäten ostdeutscher Unternehmen, ZEW Discussion Paper No. 98-14, Mannheim, published in: M. Fritsch, F.Meyer-Krahmer, F. Pleschak/Hrsg.): Innovationen in Ostdeutschland - Potentiale und Probleme. Schriftenreihe des Fraunhofer-Institutes für Systemtechnik und Innovationsforschung(ISI), Band 34. Download