Scientific and technological responses to structural adjustment: Human resources and research issues in Hungary, Turkey, and Yugoslavia

Abstract

Hungary, Yugoslavia, and Turkey once were inward-looking economies in which a lack of competition suppressed demand for improved technology. With the exception of the export-oriented portion of Hungarian industry, the investments in civilian science and technology in all three countries led to the development of enclaves of technological capacity that were largely cut off from the rest of the economy. When Turkey emerged from this situation in the early 1980s, it expanded rapidly, a situation similar to that of present-day Malaysia or Thailand. A decade later, Turkey's private and public sectors are contemplating substantial investments to make up for lost time. Hungary and pre- civil-war Yugoslavia inherit from the previous regimes an extensive scientific and technological establishment with pockets of first-class performance that could become the basis of long-run competitive advantage. This capability will require careful management and major investments if it is to be sustained during the difficult transition to a competitive market economy.