JULIA MANEA is a lecturer in International Business at the Manchester School of Management. She obtained her Ph D from the University of Reading. Her research and teaching interests include multinational firms' strategies in emerging markets, subsidiary development and impact on host-countries, transition economies, industrial performance and economic growth.ROBERT PEARCE is a reader in International Business in the Department of Economics at the University of Reading.

• List of Tables List of Abbreviations PART 1: MULTINATIONAL STRATEGY AND INDUSTIRAL TRANSFORMATION From Foreign Direct Investment to Multinational Strategy Strategic Motivations of MNEs Industrial Transition: From Restructuring to Sustained Development Needs of Industrial Transition Creative Transition MNE Strategies and the Phases of Transition The Surveys Aims and Structure PART 2: TECHNOLOGY AND STRATEGIC MOTIVATIONS FOR INVESTMENT IN TRANSITION ECONOMIES Introduction MNEs Motivations for CEE Investments Sources of Technology Applied in MNEs' CEE Operations Results Conclusions PART 3: REASONS FOR INVESTING IN CEE, TECHNOLOGY AND STRATEGIC EVOLUTION OF SUBSIDIARIES Introduction Reasons for Investing Results Conclusions PART 4: MARKET ORIENTATION AND THE STRATEGIC DEVELOPMENT OF MNES IN CEE Introduction Markets Supplied Conclusions PART 5: STRATEGIES OF MNES' SUBSIDIARIES IN ROMANIA Introduction Classification of Subsidiaries Reasons for Investing in Romania Strategic Roles of Subsidiaries in Romania Markets Supplied by Subsidiaries Types of Products Produced Sources of Technology used by Subsidiaries Conclusions Appendix: Process of Classification of Subsidiaries PART 6: MNES' R&D AND THE TECHNOLOGICAL TRANSITION IN CEE Introduction Knowledge Capabilities in Transition Economies: A Resources and a Constraint Incomplete and Distorted National Innovation Systems in Transition Economies A Brief Assessment of the NSIs of CEE The MNE as a Technology Catalyst in Transition Economies R&D Strategy of MNEs and NSI Transition Economies MNEs' R&D in CEE MNEs' R&D in Romania Conclusions PART 7: INPUT SUPPLY LINKAGES OF MNE SUBSIDIARIES IN CEE: DEPENDENCE OR DEVELOPMENT? Introduction Foreign-owned Firms, Local Input Linkages and Economic Development: The Debate Sources of Inputs Used by MNE Subsidiaries in CEE Subsidiary-level Influences on MNE's Purchasing Patterns in CEE Sources of Inputs Used by MNE Subsidiaries in Romania Conclusions PART 8: CONCLUSIONS Bibliography Index