CONTENTS -- Acknowledgements -- List of Tables -- List of Figures -- List of Contributors -- Introduction -- Chapter 1 Alignment, Misalignment and Dynamic Network-Based Capabilities Nick von Tunzelmann -- 1. Introduction - The Tasks Facing Network Alignment -- 2. Antecedents of Network Alignment -- 3. Systemic Approaches -- 3.1. National systems of innovation -- 3.2. Governance systems -- 3.3. Complex systems -- 4. Capabilities and Learning -- 4.1. Sources of learning -- 4.2. The functions of the firm -- 4.3. The capabilities of government -- 4.4. Gauging network alignment -- 5. Conclusions and Implications -- References -- Section 1 Innovation Networks -- Chapter 2 The UK Innovation System, from a Misalignment Perspective Nick von Tunzelmann -- 1. Introduction -- 2. The UK Record in Technology Performance Since the 1970s3 -- 2.1. Biases in technological change - Sectors, factor inputs and firm sizes -- 2.2. S&T performance and funding -- 2.2.1. R&D performance - GERD, BERD and HERD -- 2.2.2. R&D funding -- 2.2.3. Patenting -- 2.2.4. Science - Publications and citations -- 2.2.5. 'Hidden innovation' -- 2.3. Summary of the UK's technological performance -- 3. Misalignments in the UK System: The Private Sector -- 3.1. 'Value chain' failures -- 3.2. Spillovers and sectoral systems -- 3.3. Organisational/governance issues -- 3.4. Summary of private-sector weaknesses and strengths -- 4. The Public Sector and Technology Policy -- 4.1. Changes in governance -- 4.2. The 1970s and 1980s -- 4.3. Policy design in later years -- 5. Conclusions -- References -- Chapter 3 Still Divided by Transformation? Characteristic Features of the German Innovation System and the Barriers to Extending It to East Germany Peter Franz -- 1. Introduction -- 2. Preliminary Remarks on Methodology -- 3. Basic Features of the German Innovation System.

4. The Evolution of the East German Innovation System -- 5. Conclusions and Policy Options -- References -- Chapter 4 The Governance and Management of Technical Change in Transition Countries David A. Dyker -- 1. Introduction -- 2. The Institutional Structure of R&D in the Transition Countries Today -- 2.1. Foreign companies -- 2.2. Domestic companies -- 2.3. State research institutes and universities -- 2.4. Private research institutes10 -- 3. Critical Weaknesses in the Chain of Governance in Transition R&D and Innovation Systems -- 3.1. The multinationals - The limits to corporate vision -- 3.2. Domestic firms - The burden of the past and the limits to ambition -- 3.3. State research institutes and universities - A failure of restructuring -- 4. Conclusions -- References -- Chapter 5 Mutual Perception of Science and Industry in Innovation Networks - Evidence from East Germany Jutta Günther and Cornelia Lang -- 1. Introduction -- 2. Introductory Remarks on the German Innovation System -- 2.1. Scientific organisations -- 2.1.1. Universities and universities of applied sciences -- 2.1.2. The extramural science institutes (Außeruniversitäre Forschungsinstitute) -- 2.1.3. University research centres(An-Institute) -- 2.2. Industry -- 2.3. Policy framework -- 3. Significance of the Economic Activities of the Central German Region -- 4. Empirical Data -- 5. Results -- 5.1. Scientific organisations -- 5.2. Industry -- 6. Interview Reports -- 6.1. Scientific organisations -- Interview S1: Science institute -- Other Comments -- Interview S2: Science institute -- Other Comments -- Interview S3: University -- Other Comments -- Interview S4: University research centre -- Other Comments -- 6.2. Industry -- Interview I1: Large chemical company -- Other Comments -- Interview I2: Large chemical company -- Other Comments -- Interview I3: Medium-sized food processor.

Other Comments -- Interview I4: Medium-sized food processor -- Other Comments -- 7. Conclusions -- References -- Chapter 6 The Slovakian Innovation System - Why Does It Not Work? Silvester Salis -- 1. Introduction -- 2. Development in Market Conditions -- 3. Institutional Background -- 3.1. Slovak Academy of Sciences -- 3.2. The education system -- 3.3. The VEGA grant agency and the science and technology assistance agency -- 3.4. The Slovak Investment and Trade Development Agency (SARIO) -- 3.5. The National Agency for the Development of Small and Medium Enterprises (NADSME) -- 3.6. The Innovation Fund and Slovak Innovation and Energy Agency -- 3.7. Technology incubators as technology transfer institutions -- 4. Imbalance in the Innovation Market -- 5. Innovation Strategy -- 6. Conclusion -- References -- Section 2 Labour Markets, Job Matching and Social Networking -- Chapter 7 Job Matching, Human Capital Accumulation and Economic Development David A. Dyker -- 1. Introduction -- 2. Job Matching - Which Segments of the Labour Market Should We Focus On? -- 3. The Supply Side - Is There a Problem, or Isn't There? -- 4. What is the Relationship Between Job-Matching and S&T? -- 5. Do Managers Know What They Want? -- 6. What About the Informal Labour Market? -- References -- Chapter 8 Human Capital and Skills in Hungary - Matching Demand and Supply Andrea Szalavetz -- 1. Introduction -- 2. Recruitment Practices and Problems -- 3. Company Training Initiatives and Methods -- 4. Relations with Higher Educational Institutions -- 5. Conclusions -- References -- Chapter 9 Labour Market Constraints in Romania: The Challenge of Skill Mismatch in a Transforming Economy Dragos Pislaru -- 1. Introduction: The Market for Skills -- 2. The Romanian Context -- 3. Recent Trends in Participation, Employment and the Demand for Labour -- 4. The Challenge of Unemployment.

5. Productivity, Labour Costs and Labour Market Flexibility -- 6. Skill Mismatch and the Education Reform -- 7. Conclusions and Policy Recommendations -- References -- Chapter 10 Horizontal and Vertical Mismatch in the Labour Market among Graduate Students with Generic or Vocational Higher Education Pål Børing -- 1. Introduction -- 2. Data -- 3. Types of Mismatch and Hypotheses -- 4. Average Mismatch Levels by Type of Education in the Period 1995-2005 -- 5. The Probability of Being Mismatched by Type of Education in the Period 1995-2005 -- 5.1. Type of education -- 5.2. Individual characteristics and county-specific unemployment rates -- 6. Possible Effects of Non-Response -- 7. Conclusions -- Acknowledgements -- References -- Chapter 11 Human Resources and Skills Gap in a Regional Context: The Case of Campania Maria Del Sorbo -- 1. Introduction -- 2. Theoretical Context -- 2.1. Human capital theory and human resource development -- 2.2. Economic growth: Neoclassical and post-neoclassical views -- 2.3. Structuralist approaches -- 2.4. Triple Helix view -- 3. Regional Innovation Systems, Human Capital and Skills -- 4. 'Measuring' Regional Innovation -- 5. Policy Implications and Conclusions -- References -- Chapter 12 Urbanisation and Network Alignment Issues in Istanbul: Informal Networks in Housing and Labour Markets Ozge Aktas -- 1. Introduction -- 2. Population Figures -- 3. Brief History of the Housing Market in Istanbul -- 4. (Lack of ) Urban Planning Measures in Turkey -- 5. Informal and Formal Housing Networks Among Yesiltepe Migrants -- 6. Labour Force Participation and Unemployment in Turkey -- 7. The Informal Economy in Turkey -- 8. Informal Employment Networks in Yesiltepe -- 9. Conclusion -- References -- Section 3 Industrial Networks and International Spillovers.

Chapter 13 Knowledge Spillovers, Innovation and Firm-LevelProductivity Growth in SloveniaJoze P. Damijan, C rt Kostevc, Matija Rojec and Andreja Jaklic -- 1. Introduction -- 2. Determinants of Firm-Level Innovation in Slovenia -- 3. Impact of Innovative Activity on Firm-Level Productivity Growth in Slovenia -- 3.1. Effect of innovation on productivity growth using OLS estimations -- 3.2. Effect of innovation on productivity growth using nearest neighbour matching and average treatment effects -- 4. Conclusions -- References -- Appendix -- Chapter 14 The Impact of Technology on Skills in Estonian Wood-Based Industries Kadri Ukrainski -- 1. Introduction -- 2. Changes in Technology in Wood-Based Industries -- 3. Demand for Skills in the Wood-Based Industries -- 4. Data and Methods -- 5. Development of Technology and Skills in Wood Industries in Estonia -- 6. Discussion -- 7. Conclusions and Policy Implications -- References -- Chapter 15 FDI and the National Innovation System - Evidence from Central and Eastern Europe Jutta Günther, Björn Jindra and Johannes Stephan -- 1. Introduction and Motivation of Analysis -- 2. Theoretical Background and Development of Hypothesis -- 3. The IWH - FDI Micro Database -- 3.1. Definition of subjects of analysis: Foreign investment enterprises (FIEs) -- 3.2. The main areas of interest in the questionnaires -- 3.3. Comparing total population and sample -- 4. Method and Results of Explorative Analysis of Technological Activity and Local Embeddedness of FIEs -- 4.1. Stylised facts: Investment motives of foreign investors -- 4.2. Stylised facts: Technological activity of FIEs in a cross-country comparison -- 4.3. Stylised facts: Autonomy of FIEs vis-à-vis foreign parents -- 4.4. Stylised facts: Importance of augmenting and exploiting strategies -- 4.5. Stylised facts: Integration of FIEs into host economies.

4.6. Firm-specific determinants of technological interaction of FIEs with host economies.