The present study focuses on the geographical investigation of the automotive industry in Hungary that has been integrated into the global production networks as a relevant sector of the reindustrialization in East- Central Europe. The aim of the paper is to reveal the dominant spatial trends in this sector since the economic crisis of 2008, and how these are connected to the issue of upgrading influenced also by digitalization. The analysis is primarily based on the official industrial employment data however other secondary sources are also used. It has been stated that the growth of the Hungarian automotive industry showing to the direction of geographical concentration and expansion is accompanied by the regional stability of the sector. Quality indicators expressing upgrading indicate correlation with the spatiality of car factories and Tier 1 suppliers carrying out more complex activities, but a more significant functional upgrading is only realised in the capital city with increasingly research-development focused profile. Results suggest only moderate upgrading despite the gradual adaptation of Industry 4.0 technologies.
Industry 4.0 developing on the basis of digitalisation is gradually transforming production, the conditions of competition and relationships in global industry, affecting its interpretation and expanding its limits. This paper attempts to explore changing economic geographical context with the revaluation of comparative and competitive advantages in a semi-peripheral area of the EU. Based on company interviews, the effects of the new technologies of Industry 4.0 on the dual Hungarian manufacturing industry and its spatial structure are studied, and that whether they contribute to the reduction of duality and geographical polarization. In Eastern Hungary – just like in most areas in East-Central Europe – internationally competitive manufacturing companies emerged almost exclusively as a result of foreign direct investment, while domestic companies are forced into secondary or dependent roles. The empirical research has revealed significant differences in the progress of companies in Industry 4.0. Hungarian-owned companies evolve in a specific way from several aspects and face many difficulties. In contrast, enterprises with foreign interest continue to be the engine of development, driven from the “outside”. Duality is also reflected in the corporate structure, in space and in the realisation of Industry 4.0.
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