ABSTRACT
During transition, the industrial landscape of CEE has been reshaped by the massive inflow of Foreign Direct Investment, achieving the gradual integration of the macro-region into sophisticated global production networks. However, industrial development in CEE regions is as much a product of strongly path-dependent factors such as productive legacies and local accumulation processes as it is a result of large investment projects. This chapter examines how the success stories of modern manufacturing are often built on local histories and long-term evolutionary processes, and highlights the limited upgrading potential of the current growth model. The chapter concludes with suggestions for sustainable industrial development.
