The Lisbon Agenda and the Relocation of Economic Activities Abroad or(iv) through movements of human capital from technology intensive foreign affiliates to domestic enterprises(UN/ECE Economic Analysis Division, 2000). Reliable empirical studies of actual spill-overs are scarce and the few that exist show a mixed picture. For most of the new member countries of the EU, positive effects of FDI can be seen in the rise in productivity and in the increase in technology-intensive production, whereas the beginning of the transition process is dominated by labour-intensive and resource-intensive production. This becomes evident for example in trade flows from the accession countries. For German imports from the accession countries, the share of labour intensive textiles, clothing and leather goods dropped from 24% to 10%, whereas the share of high-tech products doubled to 55% from 1993 to 2001(The Eastern Enlargement of the European Union, 2004). Experience shows that it is much easier to attract FDI than to reap its benefits. Whether and to what extent spill-over effects occur will largely depend on country conditions. In particular, educational levels and institutional conditions are key determinants for successful use of FDI for economic growth. Countries that have been successful in developing domestic capital and high value-added industries as a result of FDI are also those which have engaged in far-reaching market reforms. Investor confidence in a stable and beneficial institutional framework has been enhanced by the 2004 EU enlargement. The ten new EU members have so far received considerably more FDI flows than South-East European countries. For countries that are at the beginning of the accession negotiation process, future FDI inflows are of special importance. While investors gain confidence in these markets, the benefits from FDI also help these countries carry out necessary market reforms, improve infrastructure and liberalise trade. It is evident that FDI is an important ingredient in development but not the only one. As a consequence of increased demand for low-skilled labour, wages in this segment rise(Egger and Stehrer, 2003). Indeed, many countries have already seen rising wage levels and a loss in manufacturing jobs in favour of countries with cheaper labour. Hungary's wage levels, for example, have risen by 20% between 2001 and 2003 and the country lost thousands of jobs when companies such as IBM, Philips and Flextronics shifted production to China (Central Europe Leads Growth in Call Centres, 2003). In 2003, the same number of Japanese firms that shifted capital abroad also repatriated capital to Japan, as wages in other Asian countries rose and concerns for the protection of intellectual property rights became stronger(Faut-il craindre les 161