Author:
Jana Vlčková University of Economics, Prague, Czechia

Search for other papers by Jana Vlčková in
Current site
Google Scholar
PubMed
Close
Open access

This case study of the medical technology sector in Czechia places a major focus on the position of Czech firms, particularly SMEs, in global production networks and their internationalization. The medical technology (MedTech) industry is on the rise in Czechia, although in relative terms it is part of a relatively less important category. Three types of MedTech firms have been identified in Czechia: branches of TNCs, mostly domestically-owned innovative SMEs, and local SMEs focusing on low-value production. Despite there being several innovative and successful firms, production is dominated by low-value disposables and medical and surgical products. Apart from exports, other forms of internationalization are rare and occur mostly among a number of innovative firms. With a few exceptions, production facilities are established in neighboring post-communist countries. The low levels of internationalization are mostly related to the nature of local SMEs as well as the limited ambitions of local firms. With more sophisticated products Czech SMEs could focus more on Eastern European countries outside the EU, where Czechia has historical economic ties and the regulatory requirements are likely to be less strict. An industry move towards connected health solutions is also an opportunity for start-ups focusing on health applications.

  • Ács, Z.Autio, E.Szerb, L. (2014): National Systems of Entrepreneurship: Measurement Issues and Policy Implications. Research Policy 43(3): 476494.

    • Search Google Scholar
    • Export Citation
  • AMSP (2017): 49. průzkum Export malých a středních firem. http://amsp.cz/49-pruzkum-exportmalych-a-strednich-firem/, accessed 15/07/2018.

  • Baldwin, R. (2006): Globalisation: The Great Unbundling (s). Economic Council of Finland 20(3): 547.

  • Bamber, P.Gereffi, G. (2013): Costa Rica in the Medical Devices Global Value Chain: Opportunities for Upgrading. Duke Center on Globalization, Governance & Competitiveness.

    • Search Google Scholar
    • Export Citation
  • Chandra, Y.Styles, C.Wilkinson, I. (2009): The Recognition of First Time International Entrepreneurial Opportunities: Evidence from Firms in Knowledge-Based Industries. International Marketing Review 26(1): 3061.

    • Search Google Scholar
    • Export Citation
  • Coe, N. M.Dicken, P.Hess, M. (2008): Global Production Networks: Realizing the Potential. Journal of Economic Geography 8(3): 271295.

    • Search Google Scholar
    • Export Citation
  • Coviello, N.Munro, H. (1997): Network Relationships and the Internationalisation Process of Small Software Firms. International Business Review 6(4): 361386.

    • Search Google Scholar
    • Export Citation
  • Cumming, D.Johan, S.Zhang, M. (2014): The Economic Impact of Entrepreneurship: Comparing International Datasets. Corporate Governance: An International Review 22(2): 162178.

    • Search Google Scholar
    • Export Citation
  • Czechinvest (2016): Investiční pobídky. http://www.czechinvest.org/dwn-investicni-pobidky, accessed 01/12/2016.

  • Czech Statistical Office (2016): Data on Research and Development. http://apl.czso.cz/pll/vykazy/ pdf113?xvyk=2414&cd=0, accessed 12/12/2016.

    • Search Google Scholar
    • Export Citation
  • De Backer, K.Miroudot, S. (2013): Mapping Global Value Chains. OECD Working Paper 1677.

  • Dedrick, J.Kraemer, K. L.Linden, G. (2009): Who Profits from Innovation in Global Value Chains? A Study of the iPod and Notebook PCs. Industrial and Corporate Change 19(1): 81116.

    • Search Google Scholar
    • Export Citation
  • Dicken, P. (2015): Global Shift: Mapping the Changing Contours of the World Economy. The Guilford Press.

  • European Commission (2016): State of the Innovation Union 2015. http://ec.europa.eu/research/ innovation-union/pdf/state-of-the-union/2015/state_of_the_innovation_union_report_2015. pdf, accessed 12/03/2017.

  • European Commission (2018): SME Internationalisation beyond the EU. https://ec.europa.eu/ growth/smes/access-to-markets/internationalisation_en, accessed 12/03/2017.

  • EY (2016): Medical Technology Report 2016. http://www.ey.com/Publication/vwLUAssets/eypulse-of-the-industry-2016/$FILE/ey-pulse-of-the-industry-2016.pdf, accessed 12/03/2017.

  • Forfás (2009): Health LifeSciences in Ireland: An Enterprise Outlook. Dublin: Forfás. http:// edepositireland.ie/bitstream/handle/2262/70621/forfas091119_life_sciences.pdf?sequence= 1&isAllowed=y, accessed 01/05/2016.

    • Search Google Scholar
    • Export Citation
  • Gereffi, G.Fernandez-Stark, K. (2016): Global Value Chain Analysis: A Primer. Duke Center on Globalization, Governance & Competitiveness.

    • Search Google Scholar
    • Export Citation
  • Gereffi, G.Humphrey, J.Sturgeon, T. (2005): The Governance of Global Value Chains. Review of International Political Economy 12(1): 78104.

    • Search Google Scholar
    • Export Citation
  • Graves, K. (2011): Global Best Practices in Medical Device Procurement: A Road Map to System Success. Journal of Medical Marketing: Device, Diagnostic and Pharmaceutical Marketing, 11(2): 101108.

    • Search Google Scholar
    • Export Citation
  • Hummels, D.Jørgensen, R.Munch, J. R.Xiang, C. (2011): The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm data. NBER Working Paper 17496.

    • Search Google Scholar
    • Export Citation
  • Humphrey, J.Schmitz, H. (2002): How does Insertion in Global Value Chains Affect Upgrading in Industrial Clusters?. Regional studies 36(9): 10171027.

    • Search Google Scholar
    • Export Citation
  • Irish MedTech Association (2017): The Story of How Ireland Became a Success in Global Medtech. http://www.irishmedtechassoc.ie/Sectors/IMDA/IMDA.nsf/vPages/Newsroom~medtechrising-the-story-of-how-ireland-became-a-success-in-global-medtech-05-12-2016/$file/Medtech+Rising+2016.pdf, accessed 01/05/2016.

    • Search Google Scholar
    • Export Citation
  • Javorcik, B. S.Spatareanu, M. (2008): To Share or not to Share: Does Local Participation Matter for Spillovers from Foreign Direct Investment? Journal of Development Economics 85(1): 194217.

    • Search Google Scholar
    • Export Citation
  • Johanson, J.Wiedersheim-Paul, F. (1975). The Internationalization of the Firm – Four Swedish Cases. Journal of Management Studies 12(3): 305323.

    • Search Google Scholar
    • Export Citation
  • Jurajda, Š.Kozubek, S.Münich, D.Škoda, S. (2015): Mezinárodní srovnání kvality publikačního výkonu vědních oborů v České republice. http://idea.cerge-ei.cz/files/IDEA_Studie_2015_Publikacni_vykonnost.pdf, accessed 20/10/2016.

    • Search Google Scholar
    • Export Citation
  • Kaplinsky, R.Morris, M. (2000): A Handbook for Value Chain Research. Brighton: University of Sussex, Institute of Development Studies.

    • Search Google Scholar
    • Export Citation
  • Kaplinsky, R.Readman, J. (2001): Integrating SMEs in Global Value Chains: towards Partnership for Development. Vienna: Unido.

  • Kimelberg, S. M.Nicoll, L. A. (2012): Business Location Decisions in the Medical Device Industry: Evidence from Massachusetts. Economic Development Quarterly 26(1): 3449.

    • Search Google Scholar
    • Export Citation
  • Lu, J. W.Beamish, P. W. (2001): The Internationalization and Performance of SMEs. Strategic Management Journal 22(6–7): 565586.

    • Search Google Scholar
    • Export Citation
  • McCann, P.Ortega-Argilés, R. (2015): Smart Specialization, Regional Growth and Applications to European Union Cohesion Policy. Regional Studies 49(8): 12911302.

    • Search Google Scholar
    • Export Citation
  • McDougall, P. P.Shane, S.Oviatt, B. M. (1994): Explaining the Formation of International New Ventures: The Limits of Theories from International Business Research. Journal of Business Venturing 9(6): 469487.

    • Search Google Scholar
    • Export Citation
  • MDD Online (2017): Top 40 Medical Device Companies. http://www.mddionline.com/article/top-40-medical-device-companies, accessed 12/03/2017.

    • Search Google Scholar
    • Export Citation
  • MedTech Europe (2016): The European Medical Technology Industry: In Figures. http://www.medtecheurope.org/sites/default/files/resource_items/files/MedTech_ FactsFigures2016_20160105.pdf, accessed 01/01/2017.

    • Search Google Scholar
    • Export Citation
  • MPO (2016): Panorama zpracovatelského průmyslu 2015. https://www.mpo.cz/assets/cz/prumysl/zpracovatelsky-prumysl/panorama-zpracovatelskeho-prumyslu/2016/11/Panorama_CZ_ internetkomplet.pdf, accessed 02/05/2017.

    • Search Google Scholar
    • Export Citation
  • Musteen, M.Francis, J.Datta, D. K. (2010): The Influence of International Networks on Internationalization Speed and Performance: A Study of Czech SMEs. Journal of World Business 45(3): 197205.

    • Search Google Scholar
    • Export Citation
  • Myant, M.Drahokoupil, J. (2011): Transition Economies: Political Economy in Russia. Eastern Europe and Central Asia. Glasgow: John Wiley & Sons.

    • Search Google Scholar
    • Export Citation
  • OECD – WTO (2016): Trade in Value Added. https://stats.oecd.org/index.aspx?queryid=66237, accessed 12/01/2017.

  • Pavlínek, P.Domański, B.Guzik, R. (2009): Industrial Upgrading through Foreign Direct Investment in Central European Automotive Manufacturing. European Urban and Regional Studies 16(1): 4363.

    • Search Google Scholar
    • Export Citation
  • Pavlínek, P.Ženka, J. (2016): Value Creation and Value Capture in the Automotive Industry: Empirical Evidence from Czechia. Environment and Planning A 48(5): 937959.

    • Search Google Scholar
    • Export Citation
  • Pavlínek, P.Žížalová, P. (2014): Linkages and Spillovers in Global Production Networks: Firm-Level Analysis of the Czech Automotive Industry. Journal of Economic Geography 16(2): 331363.

    • Search Google Scholar
    • Export Citation
  • Pietrobelli, C.Rabellotti, R. (2010): Upgrading to Compete Global Value Chains, Clusters, and SMEs in Latin America. https://ssrn.com/abstract=1551498, accessed 03/01/2019.

    • Search Google Scholar
    • Export Citation
  • Porter, M. E. (1985): Competitive Advantage: Creating and Sustaining Superior Performance. New York: FreePress.

  • Schmitz, H. (1995): Collective Efficiency: Growth Path for Small-Scale Industry. The Journal of Development Studies 31(4): 529566.

  • Simoens, S. (2009): Which Barriers Prevent the Efficient Use of Resources in Medical Device Sectors? Applied Health Economics and Health Policy 7(4): 209217.

    • Search Google Scholar
    • Export Citation
  • Sturgeon, T.Van Biesebroeck, J.Gereffi, G. (2008): Value Chains, Networks and Clusters: Reframing the Global Automotive Industry. Journal of Economic Geography 8(1): 297321.

    • Search Google Scholar
    • Export Citation
  • TAČR (2015): Hlavní závěry z projektu INKA - Mapování inovační kapacity ČR. https://tacr.cz/ index.php/cz/novinky/699-hlavni-zavery-z-projektu-inka-mapovani-inovacni-kapacity-2014. html, accessed 12/06/2016.

    • Search Google Scholar
    • Export Citation
  • UN Comtrade (2016): UN Comtrade Database. http://comtrade.un.org/, accessed 12/11/2016.

  • Vlčková, J. (2015): Measuring GVCs and Policy Implications. In: Vlčková, J. (ed.): How to Benefit from Global Value Chains? – Implications for the V4 Countries. Prague: Oeconomica, pp. 737.

    • Search Google Scholar
    • Export Citation
  • Vlčková, J. (2017): Global Production Networks in Central European Countries: The Case of the Visegrad Group. VŠE. Nakladatelství Economia.

    • Search Google Scholar
    • Export Citation
  • Weber, M.Hiete, M.Lauer, L.Rentz, O. (2010): Low Cost Country Sourcing and Its Effects on the Total Cost of Ownership Structure for a Medical Devices Manufacturer. Journal of Purchasing and Supply Management 16(1): 416.

    • Search Google Scholar
    • Export Citation
  • Welch, L. S.Luostarinen, R. (1988): Internationalization: Evolution of a Concept. The Internationalization of the Firm 14: 8398.

    • Search Google Scholar
    • Export Citation
  • WHO (2016): Medical Devices. http://www.who.int/medical_devices/full_deffinition/en/, accessed 01/11/2016.

  • World Bank (2018): World DataBank. http://databank.worldbank.org/data/home.aspx, accessed 15/03/2016.

  • Yeung, H. W. C.Coe, N. (2015). Toward a Dynamic Theory of Global Production Networks. Economic Geography 91(1): 2958.

  • Collapse
  • Expand

Editor-in-chief: Balázs SZENT-IVÁNYI

Co-Editors:

  • Péter MARTON (Corvinus University, Budapest)
  • István KÓNYA (Corvinus University, Budapest)
  • László SAJTOS (The University of Auckland)
  • Gábor VIRÁG (University of Toronto)

Associate Editors:

  • Tamás BOKOR (Corvinus University, Budapest)
  • Sándor BOZÓKI (Corvinus University Budapest)
  • Bronwyn HOWELL (Victoria University of Wellington)
  • Hintea CALIN (Babeş-Bolyai University)
  • Christian EWERHART (University of Zürich)
  • Clemens PUPPE (Karlsruhe Institute of Technology)
  • Zsolt DARVAS (Bruegel)
  • Szabina FODOR (Corvinus University Budapest)
  • Sándor GALLAI (Corvinus University Budapest)
  • László GULÁCSI (Óbuda University)
  • Dóra GYŐRFFY (Corvinus University Budapest)
  • György HAJNAL (Corvinus University Budapest)
  • Krisztina KOLOS (Corvinus University Budapest)
  • Alexandra KÖVES (Corvinus University Budapest)
  • Lacina LUBOR (Mendel University in Brno)
  • Péter MEDVEGYEV (Corvinus University Budapest)
  • Miroslava RAJČÁNIOVÁ (Slovak University of Agriculture)
  • Ariel MITEV (Corvinus University Budapest)
  • Éva PERPÉK (Corvinus University Budapest)
  • Petrus H. POTGIETER (University of South Africa)
  • Sergei IZMALKOV (MIT Economics)
  • Anita SZŰCS (Corvinus University Budapest)
  • László TRAUTMANN (Corvinus University Budapest)
  • Trenton G. SMITH (University of Otago)
  • György WALTER (Corvinus University Budapest)
  • Zoltán CSEDŐ (Corvinus University Budapest)
  • Zoltán LŐRINCZI (Ministry of Human Capacities)

Society and Economy
Institute: Corvinus University of Budapest
Address: Fővám tér 8. H-1093 Budapest, Hungary
Phone: (36 1) 482 5406
E-mail: balazs.szentivanyi@uni-corvinus.hu

Indexing and Abstracting Services:

  • CABELLS Journalytics
  • DOAJ
  • International Bibliographies IBZ and IBR
  • International Political Science Abstracts
  • JSTOR
  • SCOPUS
  • RePEc
  • Referativnyi Zhurnal

 

2024  
Scopus  
CiteScore  
CiteScore rank  
SNIP  
Scimago  
SJR index 0.26
SJR Q rank Q3

2023  
Scopus  
CiteScore 1.5
CiteScore rank Q2 (Sociology and Political Science)
SNIP 0.496
Scimago  
SJR index 0.243
SJR Q rank Q3

Society and Economy
Publication Model Gold Open Access
Submission Fee none
Article Processing Charge 900 EUR/article with enough waivers
Regional discounts on country of the funding agency World Bank Lower-middle-income economies: 50%
World Bank Low-income economies: 100%
Further Discounts Sufficient number of full waiver available. Editorial Board / Advisory Board members: 50%
Corresponding authors, affiliated to an EISZ member institution subscribing to the journal package of Akadémiai Kiadó: 100%
Subscription Information Gold Open Access

Society and Economy
Language English
Size B5
Year of
Foundation
1972
Volumes
per Year
1
Issues
per Year
4
Founder Budapesti Corvinus Egyetem
Founder's
Address
H-1093 Budapest, Hungary Fővám tér 8.
Publisher Akadémiai Kiadó
Publisher's
Address
H-1117 Budapest, Hungary 1516 Budapest, PO Box 245.
Responsible
Publisher
Chief Executive Officer, Akadémiai Kiadó
ISSN 1588-9726 (Print)
ISSN 1588-970X (Online)