Technology intensity and fdi in the Czech Republic competitive advantage

The paper evaluates the position of the Czech Republic in the development of qualitatively based competitive advantage, firstly in terms of the export structure changes according to industry classifications of factor and technology intensities. The given approach has been used extensively in international comparisons, though its explanatory value differs according to the actual quality intensity of economic activities. Even the countries with a limited extent of R&D may show up a high shares of technology intensive exports produced in FDI branches, which, however, mostly consist of assembly operations on imported components. The second view of the qualitatively based competitiveness focuses on the role of foreign companies in internationalization of production and trade, and, specifically, in domestic knowledge intensive activities. Their development makes a condition for an efficient technology transfer, the intensity of which differs according to the motivations of foreign investment in R&D.

Keywords: competitiveness, foreign direct investment, value chain