Knowledge-based entrepreneurship in Central and Eastern Europe: myth and reality

This paper summarises results of a survey of 304 knowledge based firms in six central and east European (CEE) countries. Knowledge-based entrepreneurs in CEE are not ‘gazelles’ (i.e., fast growing new technology based firms which have the potential to reshape the industrial landscape). They consist of distinct types of companies, of which new technology based firms (NTBFs) are only one. The key factor in KBE firms’ growth is most often firm specific capabilities which do not always involve R&D. Based on factor analysis we develop several taxonomies of KBEs which all point to a specific nature of knowledge based entrepreneurship in CEE. The networks of KBEs are broader and more frequently involve innovation system actors, including professional networks. For different types of KBEs different networks are important