The document discusses the competitiveness and future of Eastern Europe. It predicts that by 2020 there will be sub-grouping of countries in the region which will see sustained, cooperative growth. Central Europe is expected to see GDP growth of 3.8% until 2015. The future will focus on concepts like sustainability, micro-credits, awareness, research and development, and technology. Currently, most Eastern European countries are transitioning from efficiency-driven to innovation-driven economies, giving them a competitive advantage over countries still in earlier stages. The document outlines opportunities and challenges for Eastern Europe moving forward.

1. COMPETITIVENESS OF EASTERN EUROPE
MEGA
MINDS
ADITHYA KUMAR
(INDIA/CZECH REPUBLIC)
OLESIA SKIBINSKA
(UKRAINE/CZECH REPUBLIC)

2. Diversity & Complexity of EE will push towards sub-grouping of
countries which will see a sustained and co-operative growth by 2020
Central Europe • 60% of the population envision a trend towards sub-
grouping of EE.
• 3.8% GDP Growth expected till 2015 in CEE, 4.2% for
Russia and 4.5% for Turkey.
Baltic States • 1.6% Growth in Volume of Business for CEE by 2020.
• Suggested investment in R&D countries is 3% of GDP on
average by 2020. (Source: Europe 2020 Vision, Roland
Roland Berger Report)
CIS States
Our Forecasts for 2020:
The future focuses on the concept of
“SMART”
Balkan States • Sustainability
• Money (Micro-Credits)
• Awareness
• Research & Development
• Technology
Turkey (West Asia)
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3. At present, most of the countries in EE are in TRANSITION from an
Efficiency driven to an Innovation driven economy which signals a
significant competitive advantage
• Czech Rep., Slovakia & Slovenia are Innovation Driven Economies, with other EE
countries making a fast transition from an Efficiency Driven to the Innovation Driven
Economy.
• While India and China are still stuck in the first stage which poses a good competitive
advantage and access to opportunities.
COMPETITIVE ADVANTAGES HOW TO TAKE ADVANTAGE OF THESE ADVANTAGES?
• Relatively inexpensive • Develop infrastructure.
yet talented workforce. • Simplify bureaucracy and tackle corruption.
• Cultural similarity • Receptiveness to new ideas and innovations.
between East and West • Accentuate risk-taking!
Europe. • Improve management of resources (financial and
• Geographical non-financial)
Advantage.
• High Growth Potential.
• Unexplored resources.
Source: Own Primary Research; Global Competitiveness Report 2012-2013
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4. An Insider’s View supports our previously mentioned strategies
towards a competitive region with a bright future…
“Opportunities in creating a better place, as we could build a better world on learning
on the mistakes of big western countries” – Student, SLOVAKIA
“These countries are already quite
“Focus on the potential of its
differentiated. The local cultures
emerging markets and making
and mentality are far different
business in the region easier to
from Western Europe, USA, Asia,
conduct and more risk-free” –
Middle East etc.” – Project
Analyst, ROMANIA
Manager, BULGARIA
“The IT industry is obviously booming so that can be an option, but also agriculture can
use a technological boost especially since farming areas are good in Eastern countries” –
Student, ESTONIA
“The main weakness is that we “Opportunity is that more and more people
don’t know how to capitalise feel like part of the bigger world and chances
on available resources.” – are that our self confidence will grow.” –
Student, CZECH REPUBLIC Entrepreneur, UKRAINE
“Even if the young professionals are well trained, the senior population is growing
which I perceive as the main challenge.” – Retired Professor, RUSSIA

5. …which the Non-Europeans
agree!
“Psychological Strength of the people who
have experienced a lot of hardship in their
lives, without always having their personal
comfort, it's an advantage!” –
Soldier, CANADA “Slowness in execution and adopting reforms,
Corruption and Red-Tapism are some of the
major obstacles on the way to a very bright
future!” – Exchange Student, TURKEY
“Through encouraging entrepreneurship
and focusing not so much on large
corporations, especially on small “Unique Cultural Heritage increases the
businesses that carry the traditions and likelihood of service-based businesses
culture that are so unique for this region.” especially in attracting tourists and FDI.” –
– Senior Professor, USA Student, INDIA

6. We envision a rejuvenation among traditional industries with a
new and improved ideas and approaches
INFORMATION TECHNOLOGY AGRICULTURE SCIENCE & RESEARCH
• Computer programming, Especially Non-EU Countries • Biotech and
• Telecommunication, Bioinformatic Research
• Network security and • Micro-credits for farmers Centers
computer consultancy, • Organic farming • Envision EE as an origin
• Computer facility • Agri-consulting of a “Next Industrial
management, • Sustainable livestock Revolution”.
• Entertainment software, management.
• Virtual • Renewable energy.
workplaces/enterprises
(alliances)
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7. Traditional Organization structures will peacefully co-exist with our
vision of a new futuristic structure…
Traditional
Privately owned small
companies (Flat
organizational structure)
Privately owned Medium
sized companies (Matrix
organizational structure)
Futuristic
Virtual Enterprises with an • These enterprises will operate via electronic
Abstract Structure (For means. (For ex, virtual workplaces, etc.)
Example, CEO in Ukraine, CFO • These enterprises allow sharing of knowledge,
in Czech Republic and Other expertise and resources.
team members spread out
• Governments could be a potential partner in
across the region)
such enterprises that boosts friendliness and
cooperation within the region.
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8. … and these companies will either Cooperate or Compete with the
rest of the world!
Cooperation Competition
• Platform for interaction • With effective use of
between West & East. competitive advantage the
• Act as partner and region could attract huge
mediator between the two foreign investment.
worlds. • Cultural similarities and
• Benefiting from sharing of geographical advantage will
knowledge and expertise. fasten the ROI for the
• Allows formation of Virtual Western Investors.
Alliances thereby creating • Companies and the region
stronger relationships. itself should be more
• Strongly sustainable upright and eager to take
oriented with respect to the risks and accept challenges.
needs of the society at
large.

9. Virtual Community Organizations as a way to move forward
towards a prosperous future
Each organization will have their own expertise and will interact with different entities as
follows:
• PPP (Public Private Partnerships) with the Local Governments fostering cross border
innovation and entrepreneurship.
• Networking with universities and benefiting from fresh ideas and quick
implementation of these ideas.
• Facilitates interaction between other companies thereby achieving constant
sustainable growth thereby cutting down on costs.
• Such companies can interact with their end-customers giving them an opportunity to
create their own unique product thus being totally customer-oriented and achieving
sustainability in the process.
• Improving the retention rate of people within their own country through the provision
of micro-credits thus giving rise to new innovations and economic growth.

10. Research & Development is the axle of any company’s wheel that takes prime
importance in our vision for a future company in this region which actively
cooperates and inspires the other departments in a company.
FINANCE PRODUCTION
R&D
MARKETING
HUMAN
RESOURCES
IT/SYSTEMS LOGISTICS
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