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Government Incentives and FDI inflow into R&D – The Case of Visegrad Countries

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  • Magdalena Owczarczuk

    (University of Bialystok)

Abstract

The aim of this article is to identify and compare the efforts of the Visegrad countries in order to attract more foreign capital to the R&D sector. The study is based on the Eurostat’s and OECD’s data. Considerations about government incentives are based on information gathered by individual foreign investment promotion agencies. The countries included the study are the following: Czech Republic, Hungary, Slovakia and Poland. The countries of the Visegrad Group are perfect example of competition in attracting foreign investors. In these countries a dynamic growth of foreign participation in the financing of research and development, as well as a growing number of emerging international research centres has been observed. Among the many conditions that shape the investment environment and inflow of investment, the public R&D support is seen as a major factor. Inflows of foreign direct investment in research and development has increased substantially during the last years. In the recent years increased competition can be observed among different countries in attempt for providing attractive conditions for potential foreign investors in research and development (R&D) sector. The role of governmental policies is important to build an economic, institutional and business environment to attract foreign investors and their R&D activities. The analysis suggests that investment incentives introduced by Visegrad countries are not sufficient for FDI inflows to the R&D.

Suggested Citation

  • Magdalena Owczarczuk, 2013. "Government Incentives and FDI inflow into R&D – The Case of Visegrad Countries," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 1(2), pages 73-86.
    • Handle: RePEc:krk:eberjl:v:1:y:2013:i:2:p:73-86
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    Cited by:

    1. Zawalińska, Katarzyna & Tran, Nhi & Płoszaj, Adam, 2018. "R&D in a post centrally-planned economy: The macroeconomic effects in Poland," Journal of Policy Modeling, Elsevier, vol. 40(1), pages 37-59.
    2. Zawalinska, Katarzyna & Tran, Nhi & Ploszaj, Adam, 2019. "Planning R&D in a post centrally-planned economy: assessing the macroeconomic effects in Poland," Conference papers 333106, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Veronika Fenyves & Balazs Nyul & Krisztina Dajnoki & Zoltan Bacs & Gergo Tomori, 2019. "Profitability of Pharmaceutical Companies in the Visegrád Countries," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 15(4), pages 99-111.
    4. Krzysztof Wach, 2014. "Editorial: FDI in Central Europe," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 2(3), pages 5-6.
    5. Katarzyna Zawalińska & Nhi Tran & Adam Płoszaj, 2016. "Planning R&D in a Post Centrally-Planned Economy: Assessing the Macroeconomic Effects in Poland," Centre of Policy Studies/IMPACT Centre Working Papers g-268, Victoria University, Centre of Policy Studies/IMPACT Centre.
    6. Zorska, Anna, 2016. "Polityka państwa wobec korporacji transnarodowych i przenoszenie ich prac B+R," Studia z Polityki Publicznej / Public Policy Studies, Warsaw School of Economics, vol. 3(3), pages 1-30, April.
    7. Gergő Tömöri & Vilmos Lakatos & Bernadett Béresné Mártha, 2021. "The Effect of Financial Risk Taking on Profitability in the Pharmaceutical Industry," Economies, MDPI, vol. 9(4), pages 1-14, October.
    8. Dorożyński Tomasz & Kuna-Marszałek Anetta, 2016. "Investments Attractiveness. The Case Of The Visegrad Group Countries," Comparative Economic Research, Sciendo, vol. 19(1), pages 119-140, March.

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    More about this item

    Keywords

    R&D; policy incentives; FDI; investment promotion agencies; V4;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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