Unending wars drive technological innovation.....
This... This region has been at some form of war for the majority of known history, often atrocious unimaginable wars. Its also the Old worlds crossroads between the Arab empires, silk road, North Africa, and Western Eruope. The region was a conflict zone of many empires, and along river trade routs from all over.
https://www.ancient-origins.net/news-history-archaeology/viking-mercenary-district-0014176
Also, before the WW1, and the Soviet Union destroyed these countries stability, the region had a normal manufacturing, engineering and working climate. Slavery and subjugation -even if the USSR want to call it something else- breaks that down, but that ended a long time ago, and these people know another war is never too far away. Its hard to believe there hasn't been a major conflict in Europe in this long, even with the E.U., NATO, UN and US/USSR policy. War is just the nature of the continent.
Another big driver is that this region, traditionally less wealthy, and less "restrictive" than its western neighbors has a much friendlier gun industry, and with that gun importing industry, so while many countries would be making stuff for the export market, they really can't and so there is no drive to manufacture new anything for only a limited government market.
I think the last and most important part in the modern era, most of these countries east of Germany know not to expect any help in the even of major war. WW2, the Soviet takeover, the raging chaos of the 1980's-1990's, and no one was interested in any real help. A few bombings, and some war crimes trials, but no one was really helping much.