Innovation Policy Challenges in Transition Countries: Foreign Business R&D in the Czech Republic and Hungary |
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Authors: | Balázs Lengyel Vladislav Cadil |
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Institution: | (1) Institute for World Economy, Hungarian Academy of Science, Budapest, Hungary;(2) Technology Centre AS CR, Prague, Czech Republic |
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Abstract: | R&D expenditures of national firms decreased considerably and structural changes of R&D financing followed the fall of planned
economy in the transition period of Central Eastern European economies. In the middle of the 1990s, business R&D started to
grow in the Czech Republic and Hungary due to investments of foreign affiliates and restructuring of domestic companies. Nowadays
multinational companies have a decisive share in business R&D in these countries, which entails special challenges for national
innovation policy. In this paper, we look through the development of the Czech and Hungarian innovation policy considering
MNEs R&D. We use case studies of the Czech automobile industry, the Hungarian pharmaceutical industry, and the new MNE-related
university units and private universities to show how these companies influence innovation systems in transition economies.
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Keywords: | R& D Innovation policy Foreign-owned companies Transition economies University-industry relation |
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