Preface ......................................................... v
List of Tables ................................................ xii
List of Figures ............................................... xvi
Introduction .................................................... 1
Part I Economic Reform and Foreign Direct Investment
Chapter l Corporate Restructuring and Foreign Direct
Investment .......................................... 13
1.1 Introduction .............................................. 13
1.2 Roles of Foreign Direct Investment in the Stabilization
and Growth of the National Economy ........................ 14
1.3 Foreign Direct Investment and Corporate Restructuring ..... 19
1.4 Foreign Direct Investment and R&D/Innovation Activities ... 29
1.5 Conclusions ............................................... 39
Chapter 2 Privatization, Foreign Acquisition, and Firm
Performance ......................................... 43
2.1 Introduction .............................................. 43
2.2 Overview of Privatization Policy in Hungary ............... 47
2.3 Ownership Transformation and Firm Performance: Testable
Hypotheses ................................................ 49
2.4 Data ...................................................... 52
2.5 Empirical Methodology ..................................... 54
2.6 Results ................................................... 62
2.7 Conclusions ............................................... 79
Part II Multinational Enterprises and Technology Transfer
Chapter 3 Multinational Enterprise, Technology Transfer,
and Productivity Growth ............................. 85
3.1 Introduction .............................................. 85
3.2 Multi-Layered Structure of Industrial Classifications
and Productivity Spillover Effects of Horizontal FDI ...... 89
3.3 Objective and Period of Empirical Analysis ................ 94
3.4 Data ...................................................... 97
3.5 Empirical Methodology ..................................... 99
3.6 Estimation Results ....................................... 106
3.7 Conclusions .............................................. 117
Chapter 4 Do Domestic Firms Learn to Export from
Multinational Enterprises? ......................... 121
4.1 Introduction ............................................. 121
4.2 Data ..................................................... 125
4.3 Empirical Methodology .................................... 126
4.4 Export Premia and Market Entry ........................... 134
4.5 Determinants of Export Decision : Baseline Estimation .... 140
4.6 Information Spillover and Heterogeneity of FDI and
Domestic Firms ........................................... 144
4.7 Conclusions .............................................. 149
Part III Industrial Restructuring and Organizational
Innovation
Chapter 5 Emergence of a Service Economy: The Case of
Knowledge-Intensive Business Services-Hungary
vs. Slovakia ....................................... 157
5.1 Historical Shift in Economic Structure and Growing
Importance of the Services ............................... 157
5.2 A Brief Overview of the Diffusion of Learning/
Innovative Organizations in Europe ....................... 163
5.3 Share and Changes in the KIBS Sector Employment
in Europe Special Focus on Hungary and Slovakia ......... 166
5.4 Research Design, Sampling, and Research Method ........... 171
5.5 Organizational Demography and Networking Activity of
the Firms ................................................ 176
Chapter 6 Organizational Innovation and the Company
Practice of Knowledge Use: Hungarian vs. Slovak
Knowledge-Intensive Business Service Sector ........ 181
6.1 Developing Typology of Organizational Innovation:
A Brief Theoretical Overview ............................. 181
6.2 Diffusion and Drivers of Organizational Innovation ....... 185
6.3 The Practice of Information and CommunicationTechnology
(ICT) Use in the Firm .................................... 191
6.4 Knowledge Use Practice in Comparison : Dominance of
the Experience-Based Competence Development .............. 193
6.5 Company Training Practice : More Training and Stronger
Reliance on the External Knowledge Sources in Slovakia
than Hungary ............................................. 195
Part IV Industry Cluster and Economic Development
Chapter 7 Emergence and Development of Industry Clusters:
Searching for a 'Critical Mass' of Business via
Cluster Mapping .................................... 203
7.1 Introduction ............................................. 203
7.2 Supplier Networks and Cluster Development in Hungary ..... 207
7.3 Cluster-Mapping Practices ................................ 214
7.4 A New Hungarian Cluster Mapping .......................... 223
7.5 Conclusions .............................................. 228
Chapter 8 Industry Cluster and Regional Economic Growth ...... 233
8.1 Introduction ............................................. 233
8.2 Economic Transition, Regional Development, and
Industrial Restructuring in Hungary ...................... 235
8.3 Spatial Concentration and Regional Economic Growth:
Hypothesis Development ................................... 236
8.4 Data and Methodology ..................................... 241
8.5 Estimation Results ....................................... 246
8.6 Conclusions ............................................... 253
Conclusions and Future Research ............................... 257
References .................................................... 261
Author Index .................................................. 283
Subject Index ................................................. 289
Biography ..................................................... 295
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