Transformación económica, inversión directa en el exterior (IDE) y desarrollo de nuevas actividades en economías en transición. El caso de Hungría

Abstract

We assess the effect of foreign capital on the development of local capabilities in Hungary by distinguishing between the internalized and the externalized modes of technology transfer. Both create positive effects as well as negative effects, but not the same ones. As emphasized, the strategy of MNEs, established in Hungary, is changing; while market and efficiency were initially sought after, knowledge is now on the agenda; this change is one of the main positive effects of the internalized mode. In spite of the importance of the externalized mode of transfer, its impact on local development has received relatively little attention, in comparison to FDI. We have explored this transfer mode while stressing that it also encourages the restructuring process, which is implemented by tapping into existing local capabilities accumulated over the years. These capabilities favored the integration of Hungarian firms into MNE's global networks. In return, large contributions are expected