Report: Scaling CESEE Innovation
April 17, 2026|NH
A new study by wiiw and Vienna Business Agency shows regional potential for a "dual-hub model"
Europe is tackling an innovation bottleneck, as promising startups have at times struggled to scale into globally competitive firms in part due in part to small-country challenges - such as limited capital pools - that have been addressed but not fully eliminated by EU integration.
This report examines how CESEE’s innovation ecosystems are evolving, and what it takes for the region’s startups and scaleups to grow successfully. It finds that while production and the neighbourhood economy remain the largest sectors, digital economy is the region’s clearest growth driver, while life sciences show strong niche potential in several markets. At the same time, many high-growth firms still face persistent scaling barriers, especially around capital access and market integration.
The report therefore points to strategic intra-European relocation as a practical solution, with Vienna playing a valuable bridging role for CESEE companies.
As a research-intensive hub with strong connectivity, regulatory stability and high quality of life, as well as thriving life sciences and digital economy sectors, Vienna can help firms scale while keeping innovation and value creation within Europe.
“Scaling CESEE Innovation: Ecosystem dynamics and strategic relocation opportunities” was created by the Vienna Institute for International Economic Studies (wiiw) in partnership with the Vienna Business Agency.
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Dive in (PDF)
Scaling CESEE Innovation: Ecosystem dynamics and strategic relocation opportunities.
From the abstract: “The paper posits that strategic intra-EU relocation and dual-hub models – particularly leveraging, for instance, Vienna’s role as a proximate, research-intensive hub – can help to keep CESEE firms and value creation within the European innovation system while Capital Markets Union reforms remain incomplete.”
Read the full report from wiiw and the Vienna Business Agency here (PDF will open in a new tab).
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