Hardly any technology spillovers from supplier contacts of foreign subsidiaries in Hungary

“Almost no technology spillovers via supplier contacts of foreign subsidiaries in Hungary“ Transition economies in the process of catching-up expect that interactions between modern equipped foreign subsidiaries and backward local companies lead to technology spillovers, especially via supplier contacts. The explorative empirical study shows, however, that linkages between foreign subsidiaries and local firms do hardly exist. First, this is due to the fact that the foreign affiliates largely stick to suppliers in their home countries. Second, the technological disparities between foreign subsidiaries and local firms - the so-called dual structure of economy - hinders cooperation in the field of supplier contacts.

16. October 2002

Authors Jutta Günther

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