Radošević, S.; (2003) The emerging industrial architecture of the wider Europe: the co-evolution of industrial and political structures. (Economics Working Papers 29). Centre for the Study of Economic and Social Change in Europe, SSEES, UCL: London, UK.

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Abstract

Project results show that the international industrial networks in CEE are organized by MNCs and are limited in scope (mainly intra-firm). The weakest node for further industry upgrading via network alignment is a national network. There are big national differences in network alignment across CEECs. These differences reflect differences in the strategies of MNCs; the different roles of governments in different industries and countries; and the different positions of local authorities. EU demand operates as a strong 'focal point' (attractor) for the emergence of new industry networks. EU demand generates the necessary 'coherence' for initial and still rudimentary local clustering organized by MNCs. Differences in accession to the EU play a secondary role in market driven industrial networks. However, in sectors where regulations are important (energy, telecoms, pharmaceuticals) network alignment is strongly shaped by State regulations. The global political economy as well as EU accession has shifted CEE states towards a regulatory role. Formal policy alignment with the EU (deep policy integration) leaves unresolved the problem of conflicts and gaps in policy implementation. This may have a significant effect on patterns of industry integration in some sectors in the future. CEE states will have to learn how to influence industrial development in their territory using structural assistance while at the same time complying with the EU regulatory requirements.

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