Proceedings of the 70th International Academic Conference, Madrid

INNOVATIVENESS, SUSTAINABLE COMPETITIVENESS AND EXPORT PERFORMANCE: EVIDENCE FROM THE EUROPEAN UNION NEW MEMBER STATES

JOANNA BOGNA ZIELIŃSKA

Abstract:

There is a strong link between FDI, innovation, competitiveness and export performance. The literature increasingly emphasizes that innovation, digital transformation and AI adoption generate strong competitive advantages. Technologically advanced economies attract more FDI which enhances innovativeness and strengthens their export competitiveness. Countries with strong innovation ecosystems tend to achieve higher shares of technologically sophisticated exports and knowledge-intensive services. Technology-lagging countries may experience lower productivity, weaker export specialization, reduced attractiveness for advanced FDI. Nowadays sustainable competitiveness has become an economic policy’s priority for many countries. While China’s development is based on export-driven strategy and USA maintains high level of innovativeness, the European Union bases its competitive advantages on sustainability. The aim of the presentation is to evaluate the interdependencies between innovativeness, export competitiveness and sustainability on the example of EU new member states. The analysis concentrates on Central and Eastern European countries. Thesis 1: More innovative countries foster stronger export performance In the new EU member states, higher performance in the twin transition (the combination of innovation and sustainability) is associated with stronger export competitiveness. Thesis 2: More innovative countries adopt AI more effectively Most EU new member states represent moderate or low levels of innovativeness which results in lower AI adoption readiness. After accession to the EU, Central and Eastern European countries have improved their export performance due to FDI inflows and integration into EU production networks. However, they represent moderate or emerging innovators and still face structural weaknesses in innovation capacity. Sustainable competitiveness of CEE countries is improving and AI adoption is growing, but they still lag behind the most innovative and sustainable Western/Nordic economies.

Keywords: Innovativeness, sustainability, export competitiveness, European Union

DOI: 10.20472/IAC.2026.070.022

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