Hungary on the Map of Global R&D Developing Countries in the Changing Strategy of Multinational Companies

Abstract

This paper aims to overview the tendencies of localization of R&D activities of multina- tional companies (MNEs) and the latest outsourcing and outplacement practices. We also present the developments which allowed Hungary and other developing countries to enter into the intemational division of R&D activities. Based on available statistics the Hungarian structure of R&D is analyzed, with focus on the activities of MNEs and on the emerging dual structure of R&D.

In the last years business R&D expenditures increased significantly in Hungary. However the engines of this gowth are dominantly large enterprises, while local SMEs are lagging behind in research and development. To solve this problem economic policy needs to focus on helping the embeddedness of foreign owned R&D units by supporting and promoting cooperation with domestic institutes and companies.