HUMAN-RESOURCES AND TECHNOLOGY CHANGE IN EASTERN-EUROPE

A hitherto neglected aspect of the economic transition underway in Eastern and Central Europe is the role of human factors, especially on the microeconomic level. This study examines the validity of a technology base - human factor - productivity and manufacturing performance scheme for the region. Whereas in normally functioning market economies a certain level of coordination exists between these elements, in Hungary and other Eastern European countries a lack of coordination is evident. The paper looks into the regional specifics of such problems as the brain drain, the efficiency of technology imports or the financial background of R&D. The privatization of most R&D intensive firms looks like a good tool to promote the manufacturing-oriented development of the technology base of the countries of the region.