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3), and none predicting a decline in its importance. 6 per cent of them did indicate an expectation of decline). 00. Thus the ES motivation does appear to be generating a self-reinforcing impulsion in MNEs’ CEE operations, but does not seem to communicate its virtues to those groups that are not yet applying it. Secondly, the degree of commitment to ES also seems to have an influence on the predicted growth of the two KS-oriented product development roles. 3) a quite clear indication of a negative relationship between the current prevalence of ES and anticipated movement towards KS1 (that is, product development for CEE markets).

The need for MS operations to broaden their creativity from adaptation of established goods towards development of distinctively locally responsive new products (that is, a move towards KS1-type behaviour) will emerge. Similarly, increases in wages and other input costs begin to compromise the ES role. Movement towards higher productivity and production of higher-value-added goods (both increasingly reflecting distinctive and creative capabilities in local inputs) becomes necessary to sustain competitive status in MNEs’ supply networks.

Finally, two sources of collaborative R&D within host CEE economies were investigated as sources of technology. 4). UNIRAD would be likely to provide very distinctive pieces of new knowledge, and to be of no relevance to problem solving within the processes of applying technology. Therefore it would be negatively related to MS and ES and positively to KS1 and KS2. Similarly, collaboration with local firms (COLLABRAD) would be unlikely to be relevant to the routine application of ESTPRODTECH, providing negative predictions for MS and ES.

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