This article addresses the often overlooked S&T policy makers in the Centra
l and Eastern European (CEE) economies and the challenges they face in tran
sition. While still coming to grips with patterns and processes innovation
under market conditions, policy makers are under pressure to resolve financ
ial and organisational crises and to secure budgetary support. In this pape
r, we demonstrate how the socialist model of innovation is still shaping in
novation policies in the CEE in general and with examples from individual c
ountries. We outline three reasons for the persistence of the model: (1) th
at the model is embedded in these societies; (2) that the policy tools and
targets associated with model remain unchallenged; and (3) that vested inte
rests amongst policy makers and researchers encourage a continuation in pol
icy focus. Finally, we consider how the persistence of the model may harm t
he long-term economic performance of the CEE and what can be done to change
the mental models that underlie innovation policy making. (C) 1999 Elsevie
r Science Ltd. All rights reserved.