Abstract：The old field of Comparative Economic Systems lacked a theoretical framework, which New
Institutional Economics now provides. The paper is a brief guide to NIE: its strength, weak-
nesses, policy implications, and future tasks. The intellectual interest in the NIE approach is
directly related to the gap between prevailing economic property rights (institution) and
best practice (most productive) arrangements. A large productivity gap on a national scale
is mainly found in two circumstances: in low income countries that fail to import and
adapt existing technologies, and in high income countries failing to cope with new technol-
ogies, such as digitization.
Journal of Comparative Economics 41 (1) (2013) 1–5.
Institute of Economic Studies, University of Iceland, 107 Reykjavik, Iceland; Hertie School of Gover-
nance, 10117 Berlin, Germany