List of Tables and Figures; Preface; Chapter 1 Introduction: Productivity and Social Capability -- A Historical and Analytical Framework David A. Dyker and Leonardo Iacovone; Social Capability and Technological Congruence; Why Trade Enhances Productivity; Traditional trade models offer no conclusive answer; So, are we back with X-efficiency?3; Increasing returns and economies of scale; Technological catch-up; Uncertainty and externalities; Foreign Direct Investment, MNCs and Productivity-Some Initial Generalizations. Social Capability, Technological Congruence and Foreign Direct InvestmentReferences; Chapter 2 Identifying the Channels and Mechanics of FDI-Induced Technology Transfer David A. Dyker, Leonardo Iacovone and Cordula Stolberg; Own-Plant Effects and Spillovers; Horizontal spillovers; Vertical spillovers; Negative spillovers from FDI; Foreign Direct Investment and the Mechanics of Technology Transfer; The OLI/spillover approach; The strategic technology transfer/network-building approach; References. Chapter 3 Analyzing FDI in Central-East Europe on the Basis of Sample Surveys Boris Majcen, Slavo Radoševic and Matija RojecIntroduction; Our Conceptual Approach; Methodology and Sample; Descriptive Analysis; Autonomy of subsidiaries; Market orientation and structure of suppliers; Effects of industrial integration on local subsidiaries; Competence profile of subsidiaries; Internal and external sources of competitiveness; Financial integration; Upgrading activities; Conclusions; References. Chapter 4 Analyzing FDI in Central-East Europe through Case Studies David A. Dyker, Katie Higginbottom, Niels Kofoed and Cordula StolbergMethodology; The Questionnaire; Results of the Interviews; Business strategy; Is there a productivity gap or not?; FDI and human capital formation; FDI and local educational and R & D facilities; Does FDI ever help local suppliers to raise their game?; Is the picture any different in the electronics sector?; Is the picture any different in the services sector?; The issue of country specificity; Country specificity and convergence; References. Chapter 5 Checking the Results of the Case Study Interviews An Essay in Triangulation Leonardo Iacovone and Niels KofoedIntroduction; The Global Literature; Macro-econometric studies; Micro-econometric studies; Cross-sectional studies; Panel data studies; Case Studies from a Global Perspective; Summary of principal lessons from case studies; Firm-level absorptive capacity-learning, innovation and path dependence; Multinational strategy and subsidiary development; Market orientation-local and export markets; Sectoral structure and technological trajectories.