ACTIVITY OF FOREIGN CAPITAL-OWNED ENTERPRISES IN POLAND – IS IT REALLY EMBEDDEDNESS SO FAR? THE CASE OF LODZ METROPOLITAN AREA (POLAND)

This paper depicts the level of international capital flows attractiveness in Lodz Metropolitan Area in Poland and identifies the key attractiveness’ factors in the context of potential (or only hypothetical?) features that can decide about embeddedness of large, foreign capital-owned companies. From the point of view of the every territory’s aspiration to build its long-term competitive advantage, it is worth considering whether it is better for a region to be a “container” of cost-minimizing resources for foreign capital-owned enterprises or to offer a well developed environment, enhancing the innovative potential of both territory and its companies. A questionnaire-based research among foreign capital-owned companies having their subsidiaries located in the Lodz Metropolitan Area and employing more than 50 workers, has been conducted. It has revealed that among FDI location factors in this territory, cost factors definitely prevail. At the same time, one can observe relatively low importance of pro-efficiency location factors (except some elements of local educational offer), which could determine the potential for innovativeness of regional economy. Therefore, in Lodz Metropolitan Area and probably in most of other Polish regions, a change of the character of pro-investment policy should be considered. This “policy switch” shall be directed towards building more efficient environment for stronger economic ties at the regional level. This also means a need of strengthening the institutional framework for innovation by human resources’ development or development of research capacities of the public sector, which seems to be the most important aim for creating a potential for an effective “marriage” of global R&D network of TNCs with regional innovation system.