Poland has emerged as the research-and-development (R&D) center of Central and Eastern Europe, despite the low labor costs, unsaturated markets, and steady economic recovery that have made the Asia-Pacific region attractive for semiconductors manufacturers, according to Frost & Sullivan analysts in London.

In setting up R&D in Poland, companies seek to lower costs, increase efficiency, improve quality, and diversify from their basic activities. Potential investors in the automation and electronics industry should seek to capitalize on the opportunities in Polish R&D, according to new country industry forecasts from the Frost & Sullivan economic research and analytics team addressing the Polish automation and electronics industry.

“The automation and electronics industry is one of the leading manufacturing sectors in all industrialized and newly industrializing countries of the world,” notes Frost & Sullivan research analyst Meera Krishnaswamy. “Due to its pervasive applicability, the industry is strongly linked to macroeconomic conditions and also considered a leading indicator of the health of an economy.”

Growth and development in this industry affects other end-user industries such as consumer electronics and computers. Over the years, the production base of electronic components and semiconductors sectors have shifted from the developing countries of North America and Europe to the emerging markets of Asia-Pacific and Latin America to capitalize on low labor costs and other conducive market conditions.

“For many companies, Poland is the obvious choice due to the availability of highly qualified labor force, presence of universities, support of authorities, the largest market in central Europe, and possibly the lowest labor costs on the continent,” explains Krishnaswamy. “The biggest R&D centers are located in Warsaw, Cracow, and Wroclaw.”

Most top multinational corporations in the industry have sales, marketing, and support centers in Poland. However, the presence of production facilities is minimal. The number-one companies in the automation and semiconductor industries, namely ABB and Intel, have chosen Poland as their R&D hub. These centers have become successful and the companies are continuing to expand their presence in the country.

The three-part series addressing the Polish Automation and Electronics Industry is part of the Frost & Sullivan Automation and Electronics GPS subscription services. The Political and Policy Analysis of the Polish Automation and Electronics Industry provides detailed coverage of the political establishment, general economic and industry-specific policies, and their impact on the industry.

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