The rise of digital technologies has brought about rapid changes in the way innovation is created and diffused, redefining entire industries. This paper investigates the role that innovation plays in Central, Eastern and South Eastern Europe (CESEE), analysing the innovation performance and investment efforts in different countries in the region. Building on firm-level data from the EIB Investment Survey (EIBIS) and complementary data sources, the paper dives deeper in analysing the financing conditions of investment in innovation as a key driver that may explain differences in investment patterns compared to the rest of the European Union (EU).

About the European Investment BankThe European Investment Bank is the world's biggest multilateral lender. The only bank owned by and representing the interests of the EU countries, the EIB finances Europe's economic growth. Over six decades the Bank has backed start-ups like Skype and massive schemes like the Øresund Bridge linking Sweden and Denmark. Headquartered in Luxembourg, the EIB Group includes the European Investment Fund, a specialist financer of small and medium-sized enterprises.