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Foreign Direct Investment (FDI) and Supplier-Oriented Upgrading in the Czech Motor Vehicle Industry

Foreign Direct Investment (FDI) and Supplier-Oriented Upgrading in the Czech Motor Vehicle Industry Rugraff E. Foreign direct investment (FDI) and supplier-oriented upgrading in the Czech motor vehicle industry, Regional Studies. The Czech Republic has succeeded in building a new comparative advantage in motor vehicle and motor component production. Yet, the Czech-owned companies only contribute weakly to the Czech upgrading. The Czech-owned companies are totally absent from first-tier suppliers and are only linked by casual technological relationships to foreign-owned multinational subsidiaries. This kind of relationship limits the vertical spillovers from foreign-owned multinational subsidiaries and is responsible for the existence of a weak link in the Czech automotive system that may foster the relocation of foreign-owned subsidiaries in foreign countries. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Regional Studies Taylor & Francis

Foreign Direct Investment (FDI) and Supplier-Oriented Upgrading in the Czech Motor Vehicle Industry

Regional Studies , Volume 44 (5): 12 – Jun 1, 2010
12 pages

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References (51)

Publisher
Taylor & Francis
Copyright
Copyright Regional Studies Association
ISSN
1360-0591
eISSN
0034-3404
DOI
10.1080/00343400903095253
Publisher site
See Article on Publisher Site

Abstract

Rugraff E. Foreign direct investment (FDI) and supplier-oriented upgrading in the Czech motor vehicle industry, Regional Studies. The Czech Republic has succeeded in building a new comparative advantage in motor vehicle and motor component production. Yet, the Czech-owned companies only contribute weakly to the Czech upgrading. The Czech-owned companies are totally absent from first-tier suppliers and are only linked by casual technological relationships to foreign-owned multinational subsidiaries. This kind of relationship limits the vertical spillovers from foreign-owned multinational subsidiaries and is responsible for the existence of a weak link in the Czech automotive system that may foster the relocation of foreign-owned subsidiaries in foreign countries.

Journal

Regional StudiesTaylor & Francis

Published: Jun 1, 2010

Keywords: Czech motor vehicle industry; Upgrading; Foreign direct investment (FDI); Indigenous firms; F23; L23; L62; P31; Industrie automobile tchèque; Remontée de filière; IDE; Firmes à capitaux locaux; Tschechische Automobilindustrie; Verbesserung; Ausländische Direktinvestitionen; Einheimische Firmen; Industria checa de vehículos motorizados; Mejora; IDE; Empresas autóctonas

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