For many of the new EU Member States, this question is of particular relevance, especially in light of the fact that gains realised from a low starting position – stemming from the upgrading of technology and product quality through privatisation, restructuring and FDI inflows – may not be easy to sustain over time.
More sophisticated measures may consequently be needed to bring about a new wave of restructuring and technological progress in order to keep up with competitor economies. In this endeavour, issues such as good corporate governance, efficient competition, research and development and education policies will be increasingly important.