MNE Strategies in Hungary

Abstract

Using the ‘system’ concept — that is, looking at the linkages among local companies, MNEs, public institutions, and universities as one system — this chapter addresses the level of embeddedness of MNEs in Hungary. The first section stresses the efforts of the national government to embed FDI through broad policy measures and programmes, which, on one hand, promote linkages between foreign companies and local suppliers, and, on the other hand, enforce more intensive academia-industry relationships. In this sense, a number of elements of the national innovation system are analyzed. The second section gives a recent picture of the Hungarian food industry, and underlines the challenges the industry faces following EU accession. The third section discusses the cases of Unilever, Nestlé and InBev, and constitutes the principal empirical contribution of the chapter.