This paper discusses the need for macroeconomic policy coordination in the E(M)U. Coordination of national policies with cross-border effects does not exist at the macroeconomic level, although requested by the EU Treaty. The need for coordination stems from current account imbalances, which origin in market-induced capital flows, destabilizing the real exchange rates between low and high wage countries. The recent attempts of the Commission and the European Council to reform E(M)U governance do not address this problem and thus remain incapable to protect against future instability.

The article at hand analyses the impact of agglomeration effects, labour market conditions and other determinants on the location choice of MNEs in transition economies. We compare data from 33 regions in East Germany, the Czech Republic and Poland using a conditional logit model on a sample of 4,343 subsidiaries for the time period between 2000 to 2010. The results show that agglomeration advantages, such as sectoral specialization, a certain economic diversity as well as a region’s economic and technological performance prove to be some of the most important pull factors for FDI in transition regions. In addition, the labour market factors prove to play an important role in the location of FDI.

Innovationen in Form neuer Produkte und Produktionsprozesse sind in fortgeschrittenen Volkswirtschaften der entscheidende Treiber der wirtschaftlichen Entwicklung. Nach Abschluss der massiven technologischen Erneuerung

in Ostdeutschland, die sich bis Ende der 1990er Jahre in deutlich höheren Quoten innovierender Betriebe als in Westdeutschland niederschlug, müssen sich die Betriebe in den Neuen Ländern im Innovationswettbewerb behaupten.

Der Beitrag skizziert die Innovationstätigkeit der Betriebe in Ost- und Westdeutschland und geht im Rahmen einer multivariaten Analyse den Bestimmungsfaktoren von Produkt- und Prozessinnovationen nach.

Die empirischen Untersuchungen unter Verwendung des IAB-Betriebspanels zeigen, dass sich die Betriebe des Verarbeitenden Gewerbes in Ostdeutschland im Jahr 2008 durch eine rege Innovationsbeteiligung auszeichnen. Gemessen am Anteil der Betriebe mit Innovationen bestehen zwischen Ost- und Westdeutschland keine wesentlichen Unterschiede. Die regressionsanalytische Untersuchung zeigt, dass eigene betriebliche Forschung und Entwicklung (FuE) eine wichtige Einflussgröße für Innovationen in Ost- und Westdeutschland darstellt. Auch den betrieblichen Weiterbildungsaktivitäten kann ein positiver Einfluss bescheinigt werden. Ein wesentlicher Unterschied zwischen Ost- und Westdeutschland besteht darin, dass eine zunehmende Betriebsgröße in Ostdeutschland – anders als in Westdeutschland – keinen Einfluss auf die Innovationsneigung ausübt. In Ostdeutschland zeigen die kleinen Betriebe (10 bis 49 Beschäftigte) eine starke Innovationsneigung bei den besonders wichtigen Produktinnovationen im Sinne

von Marktneuheiten.

The focus of this article is the empirical identification of factors influencing Foreign Direct Investment (FDI) in transition economies on a regional level (NUTS 2). The analysis is designed as benchmark between three neighboring post-communist regions, i.e. East Germany, the Czech Republic and Poland. Their different transition paths have not only resulted in economic differences. We can also observe today that the importance of pull factors for FDI varies significantly across the regions. This analysis shows that in comparison with Poland and the Czech Republic, East Germany’s major benefit is its purchasing power, its geographical proximity to West European markets, and its modern infrastructure. Furthermore, the analysis suggests that intra-industry linkages such as specialization and agglomeration economies are relevant factors for the location decision of foreign investors. This result can help to explain the regional divergence of FDI streams in transition economies.

The paper is a methodological report on the IWH-FDI-Micro Database of the year 2009. It contains a motivation of the research questions and describes the availability of existing data sources on multinational affiliates in transition economies. In its core it describes the population, survey sampling and implementation, in depth information on the survey representativeness, and questionnaire design. The 2009 survey covers multinationals affiliates in manufacturing and selected services of Hungary, Czech Republic, Poland, Romania, Slovakia, and East Germany.

The paper is a methodological report on the IWH-FDI-Micro Database of the year 2010. It contains a motivation of the research questions and describes the availability of existing data sources on multinational affiliates in transition economies. In its core it describes the population, survey sampling and implementation, in depth information on the survey representativeness, and questionnaire design. The 2010 survey covers multinationals affiliates in manufacturing and selected services of East Germany.

The paper is a methodological report on the IWH-FDI-Micro Database of the year 2008. It contains a motivation of the research questions and describes the availability of existing data sources on multinational affiliates in transition economies. In its core it describes the population, survey sampling and implementation, in depth information on the survey representativeness, and questionnaire design. The 2008 survey covers multinationals affiliates in manufacturing and selected services of East Germany.

The paper is a methodological report on the IWH-FDI-Micro Database of the year 2007. It contains a motivation of the research questions and describes the availability of existing data sources on multinational affiliates in transition economies. In its core it describes the population, survey sampling and implementation, in depth information on the survey representativeness, and questionnaire design. The 2007 survey covers multinationals affiliates in manufacturing of Croatia, Poland, Romania, Slovenia East Germany.

Der Beitrag stellt die IWH-FDI-Mikrodatenbank vor. Er beschreibt die konzeptionellen Ideen der Datenbank und wie sich die Datenbank von anderen, existierenden Mikrodaten zu ausländischen Direktinvestitionen unterscheidet. Seit 2007 werden im Rahmen der IWH-FDI-Mikrodatenbank auf Unternehmensebene Informationen gesammelt zur allgemeinen Geschäftsentwicklung, zu technologischen Aktivitäten und zu Informationen über die konzerninternen Governancestrukturen. Die Daten werden bei den ausländischen Tochtergesellschaften multinationaler Unternehmen in Ostdeutschland und Osteuropa erhoben. Der Beitrag zeigt auf, welche Forschungslücken mit dem Datensatz bisher geschlossen wurden und schließt mit einem Ausblick bezüglich zukünftiger Forschungspotentiale.

This dissertation applies the theory of technology accumulation to explain the internationalisation of foreign and West German multinational enterprises (MNEs) into East Germany. This theory shifts the focus from technology transfer to the international diffusion of innovation within the MNE. It rejects the position that all MNEs offer the same technological opportunities to host economies. Yet, most of the existing empirical research on postcommunist transition economies including East Germany applies the traditional technology transfer perspective. Therefore, this dissertation provides a complementary and novel approach. We assume a dynamic interaction between existing location specific technological capabilities within the host country, MNEs’ location choice, their internationalisation of research and development (R&D) and innovation, and the potential for technological spillover effects from MNEs to the host economy. The dissertation exploits information from the IWH FDI micro database on the full population of MNEs that entered East German manufacturing until 2005 and corresponding survey data. Microeconometric estimation results generate a number of novel findings: We can show that existing location specific technological capabilities affect MNEs’ general location choice within East Germany. They are not powerful enough to attract MNEs’ technological activities. Instead, the location of MNEs’ innovation requires the joint presence of technological and industry specialisation within regions, whereas foreign R&D benefits from technological specialisation in combination with a diversified industry structure. Moreover, the location of technological activity differs depending upon the underlying motive for internationalisation. Our findings suggest that the potential for technological externalities from affiliates to local firms is subject to centrally and locally driven technological heterogeneity of MNEs. Existing location specific technological capabilities do not affect the spillover potential. This hints a limited dynamic interaction of ownership and locational advantages in firms’ internationalisation. We derive implications for the technology accumulation theory as well as for various fields of science and technology policy.