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FDI and supplier-oriented upgrading in the Czech motor vehicle industry

[journal article]

Rugraff, Eric

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Abstract The Czech Republic has succeeded in building a new comparative advantage in the motor vehicle and motor component production. Yet the Czech-owned companies only weakly contribute to the Czech upgrading. The Czech-owned companies are totally absent from the first tier suppliers and are only linked by casual technological relationships to foreign-owned multinational subsidiaries. This kind of relationship limits the vertical spillovers from foreign-owned multinational subsidiaries and is responsible for the existence of a weak link in the Czech automotive system that may foster the relocation of foreign-owned subsidiaries in foreign countries.
Classification Political Economy; Economic Sectors
Free Keywords Czech motor vehicle industry; Upgrading; Foreign direct investment (FDI); Indigenous firms
Document language English
Publication Year 2010
Page/Pages p. 627-638
Journal Regional Studies, 44 (2010) 5
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)