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The effects of foreign direct investment on R&D and innovation in Hungary

Author

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  • Peter Farkas

    (Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences)

Abstract

In his follow-up study to an earlier one written in 1997, the author draws on analysing and interpreting professional literature of the last four years to tackle a number of questions. These are as follows: Has the process of shrinkage in R&D and innovation capacity stopped yet? The accessible statistics lead to the conclusion that the real value of the corporate R&D by firms has stabilized, at a rather low level of about a third of its value ten years ago. What role do wholly foreign-owned and joint ventures play in this? Has technical development strengthened at foreign owned firms? How should the widening relations of multinationals and Hungarian research institutions be interpreted?Is the contribution made to technological renewal by supply and subcontracting activity increasing? What will be the result of having some new supplier and component-producer foreign investments in Hungary? Is the technological duality of the Hungarian economy becoming stronger? How well founded is the view that the indirect, multiplier effect of foreign capital is greater than its direct impact?

Suggested Citation

  • Peter Farkas, 2000. "The effects of foreign direct investment on R&D and innovation in Hungary," IWE Working Papers 108, Institute for World Economics - Centre for Economic and Regional Studies.
    • Handle: RePEc:iwe:workpr:108
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    File URL: https://vgi.krtk.hu/publikacio/no-108-2000-04/
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    Citations

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    Cited by:

    1. Iwasaki, Ichiro, 2004. "Foreign Direct Investment and Corporate Restructuring in Hungary," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 45(2), pages 93-118, December.
    2. Günther, Jutta, 2002. "The significance of FDI for innovation activities within domestic firms - The case of Central East European transition economies," IWH Discussion Papers 162/2002, Halle Institute for Economic Research (IWH).
    3. Ichiro Iwasaki & P�ter Csizmadia & Miklós Ill�ssy & Csaba Makó & Miklós Szanyi, 2012. "The Nested Variable Model of FDI Spillover Effects: Estimation Using Hungarian Panel Data," International Economic Journal, Taylor & Francis Journals, vol. 26(4), pages 673-709, October.
    4. Kunofiwa Tsaurai, 2018. "Foreign Direct Investment Dynamics in Hungary," Journal of Economics and Behavioral Studies, AMH International, vol. 9(6), pages 122-131.
    5. Lengyel, Balázs & Iwasaki, Ichiro & Szanyi, Miklós, 2010. "Industry Cluster and Regional Economic Growth : Evidence from Hungary," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 51(2), pages 93-112, December.
    6. Miklos Szanyi & Ichiro Iwasaki & Peter Csizmadia & Miklos Illessy & Csaba Mako, 2009. "The concentric-circle model of FDI spilklover effects estimation using Hungarian panel data," IWE Working Papers 191, Institute for World Economics - Centre for Economic and Regional Studies.

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