Upgrading local economies in central and eastern Europe? : The role of business service foreign direct investment in the knowledge economy

This article introduces the main themes of the special issue on the role of business service foreign investment in Central and Eastern Europe and its propensity to upgrade regions and localities. The debate is firmly set in the context of an increasing emphasis on the knowledge economy. We point to conceptual and data problems which make it difficult to accurately gauge quantitative and qualitative trends. A connection is made between the drivers of offshoring and the potential benefits for localities. The importance of linking research findings to policy issues is underlined.