| Author Info |
| Abstract |
processes raised the question of foreign direct investments inflow and its role in these Economies.
Poland, the first country that launched radical reforms and the largest country that joined recently
the European Union, pays special attention of the researchers in international economics and
business. This paper is introductory article opening up dissertation on technology transfer and
absorption to foreign affiliates in Poland in the years: 1993-2002. The paper carries out an analysis
of foreign companies and its role in different industries with regard to ownership control,
performance, and technology: transfer, absorption and complexity. The entire results are aggregated
and confronted in the comparative analysis with domestic private- and public- companies. The results
confirm significant increase of foreign control over their affiliates as well as the Polish market in
general. This implies larger amount of new greenfield investments that are mostly wholly owned
subsidiaries as well as using knowledge based view or transaction cost argumentation that there is
increasing transfer of tacit knowledge. Foreign companies invest more and implement more advanced
technical solutions than their domestic counterparts. Labour productivity and compensation per
employee are higher in foreign companies than in domestic firms, suggesting that employees in
foreign affiliates are more efficient, improving and absorbing new skills. Trends for profitability are
similar for domestic private companies, however foreign companies have the profits trend line flatter.
Foreign and intra-industry affiliates trade figures suggest growth in both aspects. The results
presented in this paper have clear policy implications for targeting of promotion activities to attract
FDI into Transition economies. Moreover, the paper open up the research ”box” for more profound
econometrical analysis that will be continued in the incoming dissertational articles.
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This page was last updated on 2009-12-1.