Foreign Direct Investments in R&D in Poland as an Instrument Implementing EU Technological Policy

Abstract

Making economies more competitive has become the key goal for most industrialised countries that wish either to retain or to enhance their international position. Leaders of the EU member states, trying to improve the situation in the entire group, formulated a technological policy at the Community level and set specific goals for attainment. In addition, foreign enterprises’ interest in the EU market and the pursuit for competitiveness make the enterprises perceive the creation of knowledge and activities offering high value added as a very attractive investment target. For that reason, foreign direct investments in R&D that improve country’s competitive position are a very important instrument for every member state, as they help attain the Lisbon Strategy goals.

This paper discusses foreign investors’ involvement in R&D activities in Poland. The analysis concentrates on three closely related aspects – methodological issues associating technology transfers with R&D activities; the extent and degree to which foreign investors utilise Poland’s scientific potential and finally legal aspects of various incentives attracting firms to the R&D business.

The conducted analysis of statistical data reveals that transnational corporations had not shown much interest in research and development activity in Poland from early 1990s. Their attitude changed only in the last several years.

Indicators such as total R&D spending, the structure of budget allocations to the industry, employment in the R&D sector and patent applications submitted in Poland (also under PCT) indicate that most foreign firms active in Poland use the output of their parent-companies. However, greenfield investment projects establishing new R&D centres and increasing employment in the existing ones that have been launched in the recent years suggest that the situation is changing. Discussing issues in Poland’s research and development potential and the newly introduced legal measures making R&D a more attractive business, the author endeavours to find out why foreign firms changed their attitude to R&D.