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Hungarian Innovation Policy and the Role of Technology Foresight
Dr. Tamás BaloghMinistry of Economy and Transport, Hungary
Innovation and R&D DepartmentWien, 28.02.2007.
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Scientific heritage
But: Albert Szent-Györgyi was the only Hungarian born Nobel
Prize Laurate scientist obtaining the
Prize in Hungary.
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Gross R&D expenditures per GDP are still in the lower third of the EU, …
GERD/GDP, %
1,081,00
0,93
0,750,67
0,74 0,70 0,68
0,820,94
1,010,95
0,890,95
0,00
0,20
0,40
0,60
0,80
1,00
1,20
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
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…but the trend is improving.
Innovation is a top priority of the
government.
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Business enterprises should be more active in R&D …
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… and the government promotes that by generous tax benefits.
Plus a variety of R&D programmes.
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• intramural and outsourced R&D: 200% (tax base).• IPR costs (SMEs only): 200% (tax base).• R&D expenditures at university campus or Academia,
400% (tax base), maximum 50 M HUF.• Investment tax release from 100 M HUF (R&D only).• Students in R&D: tax free up to minimum wage.• 150-170% tax base reduction for R&D donations.• Small and micro enterprises do not pay in Fund.
Tax measures for R&D and IPR
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Strong foreign presence in corporate R&D activities.
World class knowledge base in some fields (IT,
maths, physics, life sciences, chemistry,
etc.).
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Zenon
Elcoteq
EricssonContinental Temic
IBMSysdata
General ElectricNokiaCisco
SAPTATA Consulting
Sanofi-Aventis
Bosch Power Tool
Continental TevesValeo Auto-Electric
AudiMagna Steyr
General ElectricPhilips
GM-Opel
MichelinFlextronics
DensoVisteonPhilips Knorr-Bremse
Zeuna Starker
ZF Hungária
W.E.T.
General ElectricFlextronics
Samsung
Samsung
SamsungNokia
PhilipsDraixlmaier
Electrolux
AFT
Source:ITDH
CORPORATE
RESEARCH
CENTRES
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Consequently, high-tech manufacturing industries play very important role in the economy…
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… boosting Hungary’s high-tech manufacturing exports.
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Five priorities of the new Government RDI strategy (2007-2013) – February 2007.
1. Culture of implementation and utilisation of research results.2. Quality- output- and utilisation-driven, effective National
Innovation System. 3. Well paid, creative and innovative workforce responding to
the demands of knowledge driven economy and society.4. Economic and legal environment that is conducive to creation
and utilisation of knowledge. 5. Companies, products and services that are competitive at the
global market.
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Action plan based on the RDI strategy (2007-2010) – May 2007.
• Programmes based on the five priorities will be put in a coherent system.
• Proposals for new legislation to achieve a legal environment that is conducive to creation and utilisation of knowledge.
• The process shall be kept within the frames of a hard convergence programme for macroeconomic stability.
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New idea, basic research
Experimental dev’ment, IPR
Applied research
Market entry, mass production
Market success, growth
The innovation value chain…
… and the applied government tools
University and MTA basic financing
OTKA
National R&D and Innovation programme (GVOP/GOP and KTIA)
Market conform enterprise financing tools (credit, capital, guarantee)
Supporting stock market entry
Innovation and R&D conducive legal environment
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RDI policy is supported by different types of strategic intelligence:
• Analysis of national data and trends (CSO)• Analysis of studies and legal documents,• International benchmarking (UN, OECD, EU)• Technology foresight studies (national and
international, EU and UNIDO),• Direct contact with institutions and
companies.
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Hungary has a record in TF activities - 1
First TF exercise in the region (TEP, 1997-2000)
1st TF Summit in Budapest (2003)
ForeTech – twinning for RO+ BG, with CZ 2002-2003
Practical Guide for Regional Foresight (EU FOREN) – translation and distribution 2002-2003
BLUEPRINTS programmes – DG Research – Foresight and the transition of regional knowledge based economies (FOR-RIS, UPGRADE, TECH-TRANS, TRANSVISION, agriblue) 2002-2003
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Hungary has a record in TF activities - 2eForesee – MT, LT, LV, EE – co-operation (2002-2003)
IPTS – FOR-LEARN project – TF culture enhancement for CEE countries, Steering Committee (2005-)
ForSociety ERA-NET project, 15 countries, societal aspects of technology development, 2004-2007
UNIDO Training Programme – regional initiative of TF for CEE and NIS (2006-2007)
UNIDO Regional Virtual Centre for TF (2006-)
2nd TF Summit in Budapest - 2007 September
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Next: 2nd Foresight Summit, September 2007
• Organiser: UNIDO
• Possible chair: President of the Republic
• Government partners: Min. of Economy and Transport, Min. of Environment and Water
• Foresight partner: TEP Office, Budapest
• Technical partner: local company.
