Roadblocks to the Socialist Modernization Path and Transition: Evidence from East Germany and Poland (Studies in Economic Transition)

This open access book examines how different economic systems impacted the development of East Germany and Poland. Through comparing these countries while they were centrally planned socialist economies with the periods when they transitioned to capitalism, the inability of socialist economies to modernize effectively and produce sustained economic growth is highlighted. Particular attention is given the role of technological progress in economic growth, peculiar institutions, the creation and transfer of knowledge, and post-socialist transformations. The book presents a detailed analysis of the barriers to modernization and growth implied by Soviet-type state socialism and the differences and similarities between the transition of East Germany and Poland to capitalist market economies. It will be relevant to students and researchers interested in comparative systems and the political economy. Preface Contents Notes on Contributors List of Figures List of Tables Chapter 1: Development and Modernization Under Socialism and After: An Introduction 1 Socialism in East Germany and Poland 2 Modernization 3 Socialist Achievements in Modernization 4 The Drivers of Welfare Growth: Division of Labor, Accumulation, and Innovation 5 The Agents of Innovation 6 Barriers to Successful Modernization 7 A Brief Overview References Chapter 2: From East to West. Modernization in the Western and Northern Territories of Poland (1944–1989) 1 Introduction 2 The Concept of Socialist Modernization 3 Historical Conditions and Consequences of Spatial Mobility in the “Regained Territories” 4 The Contribution of the Sociology of the Western and Northern Territories to Analyzing Achievements and Failures of Socialist Modernization 5 Conclusion References Chapter 3: The Influence of Technical Progress on Economic Growth in the GDR 1 Introduction 2 Literature Overview and Hypotheses Development 2.1 The Political System, Technical Progress, and Economic Growth in the GDR 2.2 Technical Progress and Qualifications in the GDR 2.3 Hypotheses on Qualifications and Productivity of the Economic Sectors in the GDR 2.3.1 Academic Worker 2.3.2 Skilled Worker 3 Empirical Strategy 3.1 Data 3.2 Method and Empirical Approach 4 Results 4.1 Descriptive Statistics and Graphical Trends 4.2 Regression Results 5 Discussion and Conclusion Appendix References Chapter 4: Historical Legacies of Regional Innovation Activity: The Case of East and West Germany 1 Tracing the Legacies of German Division and Reunification 2 A Short History of Innovation Activity in Germany 3 Patenting Activity Before, During, and After German Separation, 1877–2015 4 Technological Shifts of Inventive Activity in Germany over Time 5 Regional Shifts in Inventive Activity in Germany After WWII and German Reunification 6 Conclusions References Chapter 5: Catching-up Modernization: Synthetic Fiber in East Germany and Poland 1 Introduction 2 Empirical Case Studies: Chemiefaserwerk Guben and Stilon Gorzów 2.1 Investments 2.2 Technology Level 2.3 Workforce Structure 2.4 Innovation Output 3 Transformation Period 4 Results Archival Sources Archiwum Akt Nowych (AAN) Archiwum Państwowe w Gorzowie (APG) Brandenburgisches Landeshauptarchiv (BLHA) Bundesarchiv Berlin-Lichterfelde (BArch) Online Information References Chapter 6: Inefficiency and Lack of Transparency in GDR Foreign Trade 1 Introduction 2 Globalization as Highest Stage of Socialism 3 The Foreign Trade Monopoly 4 Comparative Cost Advantage 5 Price Formation in International Trade 6 Some Statistics 7 Conclusions References Chapter 7: The Communist New Man Versus the Bourgeois Individual: Family Enterprise in Poland and East Germany 1 Introduction 2 Inheritance Law as a Pillar for Establishing Family Businesses 2.1 The East German Case 2.2 The Polish Case 3 The Concept of Family Company Brand 4 Time of Establishment of Family Businesses Operating in Poland in 2019 5 Summary References Chapter 8: Taking Part, Apart: Inclusion of Researchers from the German Democratic Republic in Their International Scientific Communities 1 Introduction 2 Theoretical Background 3 Data and Methods 3.1 Approach 3.2 Data Collection and Analysis 4 The GDR’s Science System 5 Inclusion of East German Researchers Despite Adverse Conditions 5.1 Research Conditions in the GDR 5.2 Levels of Inclusion 6 Achieving Inclusion in Semiconductor Physics and Molecular Biology 6.1 Inclusion in Semiconductor Physics with Original Methods 6.2 Inclusion in Semiconductor Physics with Original Theory 6.3 Inclusion in Molecular Biology with Original Objects 7 Preliminary Conclusions References Chapter 9: The Question of Legacies: Socialist Elites in Post-Socialist Transformations—East Germany’s Elites from a Comparative Perspective (1990–2020) 1 Introduction 2 Shifting Research Paradigms 3 Elites Socialised Under Socialism 3.1 System-Specific Knowledge and Party Affiliation 3.2 Age 3.3 Gender 3.4 Academic Education 4 Elite Transfer and West German Socialisation 5 Results and Further Questions References Chapter 10: The Re-allocation of Entrepreneurial Talent During Transition from Socialism to Market Economy: Some Conceptual Thoughts 1 Introduction 2 Institutional Change and Entrepreneurship: The East German Case of Transition from Socialism to Market Economy 3 Can the Evidence for East Germany Be Generalized? Implications for Other Transition Economies 4 Concluding Remarks References Chapter 11: When Backwardness Became an Advantage: Professional Stays Abroad in the West as Midwife of the Transformation in Poland 1 Introduction 2 Learning from Abroad: The Role of International Organisations 3 The “Absolutist State”: The Role of State Institutions 4 The “Zollverein”: East–West Contacts Established Through Stays Abroad 5 Midwives of the Transformation 6 Conclusion References Chapter 12: Knowledge Transfer from the Outside or Self-Learning? Keys to Success for the Establishment of Innovative Companies in Eastern Germany After 1989 1 Introduction 2 Establishment of Companies in the Transformation Phase in the New Federal States 3 Knowledge Transfer as an Important Tool for Long-Term Success in Innovative Companies 4 Methodology 5 Empirical Investigation 5.1 Entrepreneurs with Family Tradition 5.2 Entrepreneurs for Self-Development Reasons 5.3 Scientists with Entrepreneurial Talent 5.4 Unemployed Scientists 6 Summary References Index This series brings together theoretical and empirical studies on the transformation of economic systems and their economic development. The transition from planned to market economies is one of the main areas of applied theory because in this field the most dramatic examples of change and economic dynamics can be found. It is aimed to contribute to the understanding of specific major economic changes as well as to advance the theory of economic development. The implications of economic policy will be a major point of focus.