Innovation, Labour Mobility and Growth in Transition Economies

Abstract

All debates on privatisation and relations between production and employment show the importance of small firms in the transformation process of the Eastern European countries, considering contribution to growth as well as changes in the labour market. But these small firms are of two different types, which go from the traditional survival activity to the dynamic start-up. This contribution aims firstly at analysing which forms the small firms can take in the economies in transition, which leads to show the role of the differential of income between the self-employed and the salaried employees in the transition process. Secondly, it presents the empirical elements, which allow us to make a real evaluation of the mentioned processes possible and a validation of the conclusions, suggested by comparing two polar cases of transition, Poland and Romania. JEL classifications : J60, P23, P31