This post refers to more recent ones on clusters. I didn’t follow the usual comment path as this text is simply too long. Not only “Brussels” is speaking a lot about clusters, most European governments do as well without looking into the specifics of what “cluster” means for individual industries and what is to be expected by their creation.
A cluster is definitely not just a heap of companies piled upon each other in one spot under the motto “collaborate!”
Clusters are complex networks with different points of departure and different operative practices, depending on sector and target.
Continue reading ‘Cluster Discussion & Speak Brusselese: Details Outwit Strategies’
According to the Economist Intelligence Unit (EIU), multinationals have been the key driver of Central European business innovation in recent years. While this innovation has brought benefits, it has not helped local companies, nor has it prepared the region for the challenges ahead.
In fact, a dependence on multinational innovation has left Central Europe’s economies vulnerable, according the EIU report entitled ‘A Time For New Ideas: Innovation in Central Europe‘, sponsored by Oracle Corporation. While a handful of local SMEs have managed to innovate, the region faces a shortage of talent and a lack of support for innovation among local governments.
Continue reading ‘EIU: Multinational innovation in CEE is not enough’
Vienna’s position as CEE’s ICT capital has suffered quite a blow by IBM’s announcement to move its CEE headquarters to Prague. Beware: I love Prague, I live there, but the decision’s wording “to move growth market activities to growth markets” sounds rather shallow if applied to the Czech Republic. Sure the country has growth potentials that the EU15 have lost long ago, but then why not move IBM CEE to Ukraine or Russia right away?
Continue reading ‘IBM CEE: Na shledanou to Vienna’
Europe developed an early lead in mobile telephony, in large part because the major players agreed on the GSM communications standard. Using one common standard made it easy for operators to share network infrastructure, and ensured that clients could easily roam from network to network, as well as from country to country.
In a similar manner, the FP6-funded SEMOPS project – led by a mostly Hungarian consortium of companies - has created an infrastructure for making payments with a mobile telephone, which they see as the first step toward an era of ubiquitous m-commerce.
A major barrier to the wider adoption of mobile payments is the lack of a cheap, secure and universally applicable payment infrastructure. Mobile payment systems that exist today are limited and proprietary solutions. Such systems are relatively expensive to build, and their application is limited to a single purpose. For example, in many cities, motorists may now pay their parking meters with a mobile telephone, however these solutions cannot be used at the flower shop round the corner. Continue reading ‘Semops: Launching an era of mobile payments’
I read with interest that Indian outsourcers Satyam Computer Services are setting up a facility in Hungary. It’s also worth noting the company’s stock rose 4%, based largely on this news.
Hungary is good business for Satyam largely because local wages are still lower than in Western Europe. According to the Satyam piece a programmer’s average salary in Hungary is $10,500 compared to $24,500 in Ireland.
However, the piece goes on to say the comparable wages in India are $7,500, so I can’t help but ask what are the advantages for an Indian outsourcer setting up in Hungary?
Is India running out of programmers?
Is there a tax advantage I’m not aware of?
Does geography make such a difference?
The cost advantages are clear for multinationals that set up programming here (this includes Ericsson, Siemons, Nokia, Motorola, EDS …) but I can’t see the argument for an Indian company. Any suggestions out there?
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