The intrinsic properties of MgB2 form the basis for all applications of
this superconductor. We wish to emphasize that the application range of
polycrystalline MgB2 is limited by the upper critical field Hc2 and its
anisotropy. In wires or tapes, the MgB2 grains are randomly oriented or only
slightly textured and the anisotropy of the upper critical field leads to
different transport properties in different grains, if a magnetic field is
applied and the current transport becomes percolative. The irreversibility line
is caused by the disappearance of a continuous superconducting current path and
not by depinning as in high temperature superconductors. Based on a percolation
model, we demonstrate how changes of the upper critical field and its
anisotropy and how changes of flux pinning will influence the critical currents
of a wire or a tape. These predictions are compared to results of neutron
irradiation experiments, where these parameters were changed systematically