ABSTRACT
This chapter suggests that the organisational structure of industries is instrumental in understanding the upgrading opportunities of locations and their regional effects. It highlights divisions of competencies and to provide two cases for local upgrading in an emerging market using the automotive industry in Poland as an example. The chapter focuses on upgrading in hierarchically organised chains which represent the dominant mode of operation in the automotive industry. It shows that upgrading in the automotive industry may extend the operational scope of integrated locations whilst also allowing them to map out more independent local business development strategies. The chapter points to the critical roles played by organisational structures and the way value chains are co-ordinated in maximising the upgrading opportunities of places and locations. Emerging markets such as Poland benefit from the reshaping of the spatial division of competencies by attracting foreign direct investment (FDI) and additional capabilities and responsibilities.
