Past Event

ECA Talk: Accelerating Growth through Entrepreneurship, Technology Adoption, and Innovation

Economic growth in Europe and Central Asia has slowed substantially since the early 2000s, trailing East Asia by one percentage point per year in per capita terms for more than a decade. Productivity growth has declined, business dynamism has weakened, and the drive for innovation remains lackluster. In most countries, productivity gains are driven primarily by resource reallocation across firms and sectors, rather than by technology adoption and innovation. To move up the value chain, countries need to promote firm-level innovation, adopt new technologies, and enhance domestic competition to foster a more dynamic and competitive private sector. These efforts—combined with measures to help high-performing firms scale and compete, reduce the role of state-owned enterprises, and expand access to long-term financing—can unlock the region’s growth potential and support its transition to high-income status.

Economic growth in Europe and Central Asia has slowed substantially since the early 2000s, trailing East Asia by one percentage point per year in per capita terms for more than a decade. Productivity growth has declined, business dynamism has weakened, and the drive for innovation remains lackluster. In most countries, productivity gains are driven primarily by resource reallocation across firms and sectors, rather than by technology adoption and innovation. To move up the value chain, countries need to promote firm-level innovation, adopt new technologies, and enhance domestic competition to foster a more dynamic and competitive private sector. These efforts—combined with measures to help high-performing firms scale and compete, reduce the role of state-owned enterprises, and expand access to long-term financing—can unlock the region’s growth potential and support its transition to high-income status.

This ECA Talk will explore these issues in depth, as they are critical to driving stronger growth in productivity, output, and employment.

photo of Leonardo Iacovone

Leonardo Iacovone - Speaker

Lead Economist in the Trade, Investment and Competitiveness (TIC) Global Practice, World Bank Group

Leonardo Iacovone, Lead Economist in the Europe and Central Asia region, works on productivity, firm dynamics, innovation, and entrepreneurship. He studied at Bocconi University, Torcuato Di Tella University, and the University of Sussex. Leonardo is Adjunct Professor at the Hertie School and is affiliated with the Abdul Latif Jameel Poverty Action Lab and the Small and Medium Enterprise Initiative of Innovations for Poverty Action. He has published in American Economic Review: Insights; Economic Journal; Journal of Development Economics; Journal of International Economics; PNAS; Review of Economic Studies; Science; World Bank Economic Review; and World Development. In 2009, he received the Paul Geroski Prize, awarded by the European Association for Research in Industrial Economics for the most significant policy contribution by young economists.

William Maloney

William Maloney - Discussant

Chief Economist for the Latin America and Caribbean region, World Bank Group

William F. Maloney is Chief Economist for the Latin America and the Caribbean region at the World Bank. Previously he was Chief Economist for Equitable Growth, Finance and Institutions, and Trade and Competitiveness; he was also Global Lead on Innovation and Productivity. Prior to the Bank, he was an assistant professor of Economics at the University of Illinois, Urbana-Champaign (1990-1997) and then Lead Economist in the Office of the Chief Economist for Latin America until 2009. From 2009 to 2014, he was Lead Economist in the Development Economics Research Group. From 2011 to 2014 he was visiting professor at the University of the Andes and worked closely with the Colombian government on innovation and firm upgrading issues.

photo of Ivailo Izvorski

Ivailo Izvorski - Host & Chair

Chief Economist for the Europe and Central Asia region, World Bank Group

Ivailo V. Izvorski is the Chief Economist in the Europe and Central Asia region of the World Bank. Over the past 25 years, he has worked in technical and management positions covering the countries of Africa, East Asia and the Pacific, and Europe and Central Asia at the World Bank, the Institute of International Finance, and the International Monetary Fund. Before his current position, Ivailo was the Manager of the World Bank Global Debt, Macro, and Growth Unit and, before that, a manager of macroeconomists for Europe and Central Asia. He holds MA and PhD degrees in economics from Yale University. Ivailo is a coauthor of Diversified Development: Making the Most of Natural Resources in Eurasia and of Reinvigorating Growth in Resource-Rich Sub-Saharan Africa.

Date: June 05, 2025

Time: 08:00 AM - 09:30 AM ET

Location: Online

Virtual:

Watch live here

Event Contact:

Ekaterina Ushakova

eushakova@worldbank.org

Suzette Dahlia Samms-Lindsay

ssammslindsay@worldbank.org