Competitividad y renovación industrial. El papel de la inversión extranjera directa en el desarrollo

Abstract

Production process in electrical engineering industry is sequenced into a series of phases with different factor intensity. These phases find their optimal spatial locations internationally. Therefore, production of the electrical appliances industry is one of the most internationalized manufacturing branches. The analysis of the industry in Hungary showed, that the sector’s activity was determined by foreignowned companies. In the sub sectors with high degree of foreign ownership performance measures were always above average. This indicated that multinational companies of the branch operated more efficiently, had a higher level of productivity, grew faster than local companies. The analysis also proved that most of the multinational firms were isolated, cooperated mostly with other multinationals’ affiliates in the country, if with any. Therefore, the spillover effects that could come from their superior capabilities towards local firms, were rather limited. Local partners hardly entered supplier links. The lack of local supplies was a result of both the reluctance of multinationals to establish new cooperation contacts, and the lack of competence at Hungarian firms.