The Transformation Role of FDI in R&D: Analysis Based on Material from a Databank

One of the most important aims in economies in transition is to create wealth by significantly improving competitiveness and integrating fully into the world economy. The future of countries in the world trading system now depends essentially on their capacity to build domestically the skills and interactive mechanisms on which technological accumulation and capital formation depend. Foreign direct investment2 (FDI) and foreign investment enterprises (FIEs) have come to the fore in this process in the post-socialist countries as vehicles for the transfer of financial resources and the capabilities which are missing in these countries. In other words, FDI as a factor of economic transition can speed up transformation by facilitating internationalisation and technological integration, and helping these countries to ‘catch up’.