Industrial Structure and Specialization of Essay

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For ABB, expansion to the east was logical given the global nature of its activities. Tesco has successfully pioneered expansion to CEE in the retail business where such expansions are fraught with numerous risks. For them, EU accession does not seem to alter much in terms of strategic orientation and perceived benefits from their CEE presence. For Soufflet, accession may open up the opportunity to export to the EU (Gligorov & Podkaminer, 2007). However, despite the seemingly secondary importance of EU and EU accession in network alignment in all cases they give a clear focus and long-term orientation to company strategies and coherence to network alignment (Timmer, et al. 2007). This conclusion as to the secondary but nonetheless strategic importance of EU accession in building industrial networks may be due to bias in our case studies which do not involve industries (with the partial exception of Elektrim) where regulatory aspects are prominent.

National governments are neither the source of problems nor are they facilitators of network alignment. Similar to the countries of the EU, this factor operates as secondary due to the passive role of government in privatization. In a few cases, governments have provided rents to local investors (Elektrim, Videoton), which have been used productively. The assessment of the government's role in network alignment via competition policy (telecom liberalization and the position of Elektrim), subsidies (support to local suppliers in agriculture in case of Soufflet, EBS and Dobrogea) or R&D support (Dobrogea) is much more complicated. Promoting an environment conducive to entrepreneurship -- one of the central themes of the EU industrial policy approach -- will be particularly important in candidate countries.

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Enlargement will also raise the stakes of the sustainable development strategy (Commission of the European Communities, 2003).

Bibliography

Foster, N. And Stehrer, R. 2007, Modeling transformation in CEECs using smooth transitions, Journal of Comparative Economics forthcoming.

Gligorov, V. And Podkaminer, L. 2007, Private Consumption and Flourishing Exports Keep the Region on High Growth Track, wiiw Research Report, No. 335, special issue on economic prospects for Central, East and Southeast Europe, Vienna, wiiw.

Peneder, M. 2004, High growth with old industries? The Austrian paradox revisited, in Foster, J. And Hoelzl, W. eds, Applied Evolutionary Economics and Complex Systems, Chelten ham, Edward Elgar, pp. 197-219.

Peneder, M. 2005, Creating industry classifications by statistical cluster analysis, Estudios de Economica Aplicada, 23 2, pp. 451-63.

Peneder, M. 2007, A sectoral taxonomy of educational intensity, Empirica forthcoming.

Sergi, B.S. Bagatelas, W.T. Kubicova, J. Burlington E, 2007 Industries and markets in Central and Eastern Europe. Retreived on Dec. 12th, from http://ec.europa.eu/enlargement/5years/documents/impact/publication14078_en.pdf

Commission of the European Communities, 2003 Impact of Enlargement on Industry, Commission Staff Working Paper, SEC234, Retreived on Dec. 12th, from http://ec.europa.eu/enterprise/policies/industrial-competitiveness/files/industry/doc/sec_234_2003_en.pdf

Stehrer, R. 2005, Employment, Education and Occupation Structures: A Framework for Forecasting, wiiw Research Report No. 315, Vienna, wiiw.

Timmer, M., Moergastel, T. van, Stuivenwold, E., Ypma, G., OMahony, M. And Kangasniemi, M. 2007, EU KLEMS Growth and Productivity Accounts -- Version 1.0, Part 1 Methodology and Part II.....

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