29 april 2012 Regional Innovation Monitor Regional Innovation Report (Central Hungary) To the European commission Enterprise and Industry Directorate-General Directorate D Industrial Innovation and Mobility
Industries Andrea Szalavetz Technopolis associate www. technopolis-group. com PREFACE The Regional Innovation Monitor (RIM) 1 is an initiative of the European commission's Directorate General for Enterprise and Industry,
other innovation stakeholders with the analytical framework and tools for evaluating the strengths and weaknesses of regional policies and regional innovation systems.
co-ordination and implementation mechanisms 16 2. 3 Availability and use of policy intelligence tools 18 2. 4 Key challenges and opportunities 18 3
orientations and opportunities 26 Appendices Appendix A Bibliography...28 Appendix B Stakeholders consulted...30 4 Executive Summary 1. Introduction:
Main trends and challenges in the Regional Innovation System Central Hungary (CH) encompassing Budapest and Pest county is the economic, commercial, financial, administrative and cultural centre of Hungary.
The main drivers of regional performance are high-value knowledge intensive services. The biggest challenge jeopardising both regional economic performance and the shift to innovation-driven growth is the unfavourable turn in Hungary's fiscal and regulatory environment.
Drastic cuts in the public funding of education science, technology and culture, healthcare, public transport and other public services also limit the opportunities of innovation-intensive sectors
and reduce the attractiveness of the region both to science and technology related business and to cultural and creative industries.
International benchmark categorisations point to nonnegligible gaps between CH and advanced knowledge hub regions in terms of a wide variety of indicators.
and the legitimacy of the regional innovation agency and increasing efforts to establish linkages with new stakeholders. 2 This report calculates with HUF/€ exchange rate of 250 for the years 2004-2007;
and enhance the willingness to cooperate for common goals Several important constituents of social capital are missing e g. trust is low in international comparisons,
Competition among the stakeholders for authority i e. for power to decide about the allocation of scarce resources proved an effective barrier of joint initiatives and of the design and implementation of a RIS.
Changes in the external environment rather than in the policy itself contribute to the solution of this challenge.
If regional stakeholders remain committed to the strategic mid-term improvement of the regional innovation performance, they have to align their forces
Excellence in research was enhanced by recent large-scale investments co-funded by European union Structural Funds that enabled the improvement of R&d infrastructure in universities.
and meagre local financing opportunities, the best option for exploiting and enhancing the existing innovation potential is to promote international co-operation.
Policy addresses this challenge through the launch of‘imarket'(innovation market) services that include the identification of innovative projects, a search for pre-commercial procurement possibilities,
and matchmaking services (finding technology partners and parties interested in the new products and solutions) both at national and at international level. 3. Innovation policy governance INNOREG,
or within the network of the Hungarian RIAS) and to the design of various regional innovation management actions, events and services.
Representatives of INNOREG, similarly to those of other RIAS can only hope their network would be sustained and their in depth knowledge of both the regional innovation stakeholders (their network capital) and of the regional innovation specifics,
future actions and opportunities for innovation policy Although Central Hungary could easily have capitalised on its existing knowledge
innovation policy stakeholders (at all levels) have failed to do so. As a consequence of their lacking vision (and mid-term strategy) and of the failure to position this regional unit in the national innovation system,
Nonetheless analysts and the interviewed policy stakeholders acknowledge that regional innovation performance has been inferior to its potential.
Due to regional innovation intermediaries'systematic work, regional SMES have accumulated some knowledge about the available innovation management services
and an appropriate mid-term strategy conceived in partnership with regional level stakeholders. At the regional level, involvement in strategy design and implementation should be intensified.
CH's innovation policy stakeholders have to become more proactive, launch bottom-up initiatives, and contribute to the positioning of the region both at the national level and internationally.
By stimulating technology-based entrepreneurship and strengthening the‘demand side'(instead of the traditional policy focus on the supply side of innovation),
Economic transformation and foreign direct investment driven modernisation have produced substantial structural change in CH's economy.
This was manifest in the rapid development of the services sector (in particular of financial intermediation, telecommunication, commerce, and logistics;
and in the expansion of high-tech industries (ICT, electrical and optical equipment, pharmaceutical industry) and knowledge-based services (business services, software development, etc..
including the majority of foreign investment enterprises. The region is developed characterised by infrastructure, high motorway density, good accessibility, intensive entrepreneurship and a high share of foreign investment.
Practically all economic, social, institutional, educational and R&d-related performance indicators are considerably above the national average.
Services contributed 77%to regional GDP in 2009, which is 10%higher than the national average.
and services centre of Hungary (with a particularly large share of tourism, financial and real estate,
educational and health services compared to the Hungarian average). The number of registered companies amounted to 591,232 at the end of 2010,
The number of active enterprises was however much lower at 274,673. The intensity of entrepreneurship activity (number of active enterprises per thousand inhabitants) is the highest in Hungary at 93.3 (in 2009) versus 69,
which is the national average. In Budapest, the respective indicator is 109. Higher-than-the-average entrepreneurship is explained with the concentration of economic activity in this region and with the above average development level of supporting institutions and industries.
The latest data for enterprises with foreign investment are available for the end 2009: their number was 20,552,
which is 70%(!%of the total. In fact, the regional stock of FDI was 66.1%of the total.
Total investment was particularly intensive in the region compared to average 9 investment performance at 43%(in 2009.
Investment per capita was by 45%higher than the national average in the second half of the 2000s.
CH was affected seriously by the economic crisis that started in 2008. Over a period of two years, the number of unemployed doubled, reaching 120,500 in 2010.
%regional investment increased by 4. 4%compared to 2008. This increase was mainly due to economic actors'investments in machinery and equipment,
which increased by 6. 3%.In summary, the region's clear leadership has remained not only unchallenged,
and from the other parts of the economy (this tendency is reinforced by the hub
the development of the capital is perceived (by stakeholders in other regions) to be at the expense of the rest of Hungary (a zero sum
but also in the development level of infrastructure and of business services necessary for a capital city of this size to become a centre for international business.
As for the capital, persisting financial problems and shortage of funding result in below-the-optimal level of urban development.
Consequently the quality of public services (e g. health services, public transport services) that face acute funding shortages is also poor in international comparison.
Both the capital and its 23 districts have municipal governments with independent functions and powers, i e. the local governments of both the capital itself and its 23 districts have equal status and power a phenomenon that is unique in Europe.
The main drivers of regional performance are services in general, and high-value knowledge intensive services3 such as ICT in particular,
as well as cultural & creative industries. The biggest challenge jeopardising both regional economic performance and the shift to innovation-driven growth is the unfavourable turn in Hungary's fiscal and regulatory environment that reduces the attractiveness of the capital as a base for high
value services such as banking and insurance. Moreover, drastic cuts in the public funding of education, science and technology and culture (as well as of healthcare, public transport and other public services) also limit the opportunities of innovation-intensive sectors
and reduce the attractiveness of the region both to science and technology related business and to cultural 3 According to Eurostat,
the share of persons employed in business services was 23.6%in 2007, which is somewhat below the respective figures of other central regions of Europe (e g.
Prague: 24.8; Berlin: 30.6). 10 and creative industries. The indicators of urban development and quality of life4 feature an increasing lag compared to various other European capital regions. 5 1. 2 Recent trends in regional innovation performance
A large share of the head offices of R&d-intensive multinational enterprises (MNES) is located in CH.
therefore, indicators should be assessed in the context of an overall meagre innovation performance of the economy.
CH together with Prague and Bratislava are‘public knowledge centres'rather than metropolitan knowledge-intensive services regions (such as Brussels, Berlin, Stockholm or London) or high-tech regions (such as North Brabant).
International benchmark categorisations point to non-negligible gaps between CH and advanced knowledge hub regions in terms of a wide variety of indicators.
'demography, social aspects, economic aspects, civic involvement, training and education, environment, transport and travel, culture and leisure, innovation and technology.
Although the majority of innovative and R&d-intensive enterprises is concentrated in CH, the share of public investment in RTD financing is still quite high at roughly 40,
%and the share of foreign capital in R&d financing is the highest in Hungary, at 16%versus 12.35%.
%This is mainly due to the fact that the majority of PROS and of HEI-affiliated research institutes
Employment in high-tech industries and in knowledge-intensive services as a share of total employment was 7. 29%in 2008,
human capital. The share of the population aged between 25 and 64 with a tertiary education was 28.9%in 2008,
The planned structural change is guided by the principles of 1) reducing the budgetary contribution to higher education and 2) diminishing the excessive weight of the capital in higher education.
Improved results in these respects were achieved due to unprecedented investment activity in research and technology infrastructure,
i e. with the region's above average share of innovative foreign enterprises and with its specialisation in knowledge-intensive services and in high-tech industries.
Hence, the main challenges identified below will not include the usual challenges that otherwise also apply e g. the necessity of 1) increasing stakeholders'commitment to innovation;
2) facilitating new technology-based entrepreneurship for local SMES; 3) improving Triple Helix linkages and technology transfer
(i e. that support should be channelled into regions characterised by relatively strong innovation actors rather than granted to stakeholders in relatively weaker regions) include the above average absorption capability of CH,
Csepeli, Prazsák, 2011) in Hungary several constituents of social capital are below the optimal level:
According to regional stakeholders these shortcomings have been especially significant in CH and they have prevented the design
7 Competition among the stakeholders for authority i e. for the power to decide on the allocation of scarce resources proved an effective barrier of joint initiatives and of the design and implementation of a RIS.
7 This is practically a unanimous opinion of all interviewed stakeholders (including the ones responsible in principle for the design and implementation of the strategy,
Excellence in research was enhanced by recent large-scale investments co-funded by European union Structural Funds that improved R&d infrastructure at universities.
and meagre local financing opportunities, the best option for exploiting and enhancing the existing innovation potential is to promote international co-operation.
but better communication and linkage building may multiply international awareness of CH's innovation potential and of its tangible and intangible RTD assets. 2. Innovation policy governance 2. 1
During the first years of its activity, INNOREG started to establish linkages with the main regional innovation stakeholders,
and launching various innovation management services. The services portfolio of INNOREG's founders, which were intermediary organisations themselves,
were enhanced and improved, and negotiations about the first joint actions were started. Following the first three-year period of INNOREG's activity NKTH contracted an independent body, the Federation of Technical and Scientific Societies (MTESZ),
Other activities included the launching of innovation management services, the organisation of conferences and exhibitions and other innovation related events such as participation in tenders, linkage building with regional innovation
stakeholders, with the representatives of other Hungarian RIAS and with international stakeholders. Despite a more or less diversified portfolio of events and actions, neither the term coordination, nor strategy implementation applies to INNOREG's activity:
Stakeholders in the pole cities could instead submit project proposals and apply for funding from various OPS of the New Hungary Development Plan.
and stakeholders who submitted tender applications occasionally made reference to the newly conceived pole strategies, OP-based Pole Programme implementation was fragmented obviously and partial.
centrally managed OPS targeting innovation (e g. support of accredited innovation clusters, support of enterprises'R&d activities etc..
and the development of a knowledge-based economy opened up never-before-seen opportunities for regional innovation stakeholders.
CH's stakeholders trying to receive funding for their RTDI related efforts were channelled thus effectively towards OPS.
INNOREG cooperates with the Hungarian Innovation Association, with the Public Foundation for the Progress of Industry (IFKA), with national and regional chambers of commerce and with enterprise development agencies.
Horizontal co-operation among regional innovation agencies has become formalised through the creation of RIAS'network (RIÜNET) that has provided an opportunity for active dialogue
As for the new structure of the national innovation system, strategy formulation is currently the responsibility of the Ministry for National Economy.
and 3) provide consultancy services to innovative SMES. However, as a result of radical downsizing, the majority of experts were fired (others had to quit)
According to stakeholders who read the unofficial first draft of the new national innovation strategy (no official first draft has been published yet) regional aspects of innovation are mentioned not in the national strategy. 11 Representatives of INNOREG,
and their in depth knowledge of both the regional innovation stakeholders (their network 10 The Council, established by Government Decree No. 1279/2010,
and the necessity to maintain RIAS. 16 capital) and of the regional innovation specifics, perspectives and bottlenecks would be considered an asset too valuable to be left to decay.
and the services they provide are par excellence‘developmental state'-type activities. At the same time they intensified their international activities:
Innostart is also a member of EBAN, the European Business Angel Network and of Enterprise Europe Network.
it was engaged recently in EU FP7 IDEALIST project that enhances the services and networking activities of National Contact Points (NCPS) in the field of ICT (a key sector and technology in CH's smart specialisation strategy).
and by the opportunity to get access to Structural Funds resources that support regional innovation.
and have developed a range of services that can be provided on a for profit basis, the amount of the annual grant they currently apply for is only one third of previous yearly grants:
It tries to involve all possible stakeholders and improve thereby its lobbying power and multiply its network linkages. 17 National Office for Research
it is constrained to the representation of the region in innovation-specific discussions (e g. with NKTH), 14 or within the network of the Hungarian RIAS (RIÜNET) and to the design of various regional innovation management actions, events and services.
and German models adapted to the Hungarian and Central European business environment, these include technology evaluation,
The Central Hungary Operational Programme (CHOP) applies SWOT analysis, benchmark comparisons in the field of innovation performance assessment.
and improve upon the profit-based regional innovation management activities of the regional intermediary organisations,
and opportunities At a time when unprecedented amounts of funding are available from EU Structural Funds for innovation purposes,
the main challenge faced by innovation policy decision-makers is to design programmes that use this opportunity effectively
European union Structural Funding offers the opportunity to overcome the trade-off between excellence and cohesion in CH.
Another challenge is to improve both the quality of the region's public services (especially health and transport services) and support cultural and creative industries.
This would address the challenges of the recent deterioration of these services and the acute funding shortages of these industries both of which are crucially important for a capital region.
and benefit from these opportunities the regional institutional base must be reinforced, just as governance and policy coordination must be improved:
which prevents them functioning as a stakeholder in partnership-based governance of regional innovation. Instead of being the main coordinating and supporting actors of regional innovation,
instead become regional innovation intermediary organisations with profit-based activities. On the other hand due to their intensive participation in EU co-funded projects, they will become research performers themselves.
Therefore, the amount the central budget can save will produce huge opportunity costs. Regional operational programmes will allocate huge amounts of funding to promote, among other things, regional innovation objectives.
p. 125) that shows the number of innovation policy instruments used by national and regional governments in 21 OECD economies.
(and ensure the transfer of know how by including advanced economy regions as twin-regions). It was in the framework of this programme that CHIC (that later became one of INNOREG's founding organisations) prepared the RIS of CH, with contributions from Innostart and other consultancy firms.
Support to the development of accredited innovation clusters was continued in the framework of the Enterprise Development Operational Programme of the New Széchenyi Plan.
as well as innovation performers'investments into R&d infrastructure or into technology development. Regionally decentralised Innocheck programmes provided indirect support to stakeholders'innovation efforts (the programme promoted small and micro-sized firms'demand for innovation services in the form of innovation vouchers that could be used to purchase of innovation
related services (business and technological consultancy services, feasibility studies, marketing, IPR issues related consultancy, incubation services etc..
Direct support for regional innovation stakeholders'RTDI activities was granted by several CHOP measures either under headings referring directly to the support of market oriented R&d activities,
or under headings that supported accredited innovation clusters. In reality, these latter project proposals made little reference to cluster related co-operation activities:
such as the Science Innovation Programme (SIP) and the Enterprise Development Programme (EDP) are earmarked regionally. In the framework of SIP two programmes were earmarked for CH:
one supported regional stakeholders'innovation efforts, the other granted support to the commercialisation of SMES'R&d results.
On the other hand, EDP's policy instruments targeted regional enterprises'(SMES')investments into technology development. Other EDP measures granted support to SMES'process development projects.
specifically to the development of e-commerce targeted at regional stakeholders. Human resources The regional innovation policy mix does not target human resources in terms of supporting higher education institutions'education activity.
The Social Renewal Programme (and also the Social Infrastructure Programme that supported investments into HEIS'educational infrastructure) granted funding to universities and some other 20 The plans are the framework documents for allocating the financial
These measures have contributed to the 1) improvement of educational services; 2) launching of university-based research projects;
5) large-scale investments into universities'R&d-and educational infrastructure etc. HEI-specific R&d projects of the Social Renewal Programme were continued by New Széchenyi Plan's SIP.
Technology-oriented entrepreneurship The main regionally decentralised instrument designed to promote the establishment and growth of technology-based enterprises was the Innocheck programme,
which gave innovation vouchers to SMES so that they could be used among other things for incubation purposes, for the preparation of feasibility studies,
or for the purchase of technical assistance services. Business incubation is developed relatively in CH: there are many bridging institutions that operate partially on a profit basis and partially as public benefit foundations.
The two main organisations that specialise in business incubation and innovative start-up financing are CHIC and Innostart,
which received regular funding from NKTH to carry out specific services on a public benefit basis. In the case of Innostart regular public (NKTH) funding covered the organisation's membership fee in the European Business Network.
A national programme with regional implications that focused on the support of technology-oriented entrepreneurship was the Regional University Knowledge Centre (RUKC) Programme. 21 RUKC was integrated an university-based programme
Support for technology-oriented entrepreneurship gained a new impetus with the Structural Funds cofunded programmes,
which were aimed at stimulating universities'technology transfer activities (Social Renewal Programme of the New Hungary Development Plan) supporting the establishment of business incubators and supporting the development of the incubators'services portfolios
(CHOP business incubator programme). CH innovation stakeholders can also access JEREMIE funding instruments. JEREMIE, i e.
Joint European Resources for Micro to medium Enterprises is an initiative of the European commission together with the European Investment Bank
and the European Investment Fund, launched in 2005. In Hungary, the venture capital (VC) part of the JEREMIE initiative was introduced in 2009,
(the micro loan and SME working capital financing programmes started earlier). JEREMIE VC programme was launched with the aim of improving Hungarian SMES'access to capital in the early (seed
and start-up) and growth stages of an innovation project. In the framework of the JEREMIE initiative eight Hungarian VC Funds were created.
Only one of them, Euroventures IV VC Capital Fund is entitled to carry out VC investment in CH,
on the basis of equity co-investment (with other private investor/s). Markets and innovation culture The most important element of INNOREG's activity was its contribution to the improvement of regional innovation culture.
In INNOREG's case the dominant part of the regionally decentralised funding aimed at supporting the establishment
Innovation information points were established throughout the region providing consultancy services and information about regional innovation activities and results,
particularly focusing on INNOREG and its members'services and fundraising possibilities. These activities contributed to compiling a continuously increasing regional innovation database to be used later for policy intelligence purposes.
and 21 From 2005 on this programme was renamed Pázmány Péter Programme 22 provided accredited training services.
INNOREG's website was used for the communication of regionspecific innovation related news (an online regional innovation magazine:
development X X X SMES'product development activity X X X Technological development in SMES X X X Technology-oriented entrepreneurship
Innovation stakeholders'participation in international projects X X X Improvement of regional innovation culture X X X BGP=Baross Gábor Programme
in other words, it is a network of intermediaries and innovation services providers. Previous sections (2. 1 and 2. 2) have already detailed that this type of organisational setup has constrained the agency's room to manoeuvre.
and had established linkages with major regional, national and a number of international stakeholders, their existing knowledge assets and their enhanced activities have failed to produce the expected synergy effects. 22 Secondly,
Both INNOREG and its founding organisations (and also other innovation/development policy stakeholders within CH and in Hungary, at the national level) had outdated an old
what 22 This was shared the opinion by several of the interviewed stakeholders (No. 2, 4,
regional innovation policy was considered obviously inefficient, by all stakeholders. In fact, policy failed to produce the expected synergies,
It has built a dense network of linkages and accumulated in depth knowledge about regional innovation stakeholders
which allowed it to adjust flexibly to changes in the external environment. INNOREG has undeniable merits in promoting regional innovation culture,
and raising awareness among stakeholders of innovation issues, including previously non-innovating regional SMES. It is worth noting that according to the interviewed stakeholders this was their main ambition:
hence if success is the function of the fulfilment of ambitions, this activity was really successful.
Innocheck also proved highly efficient in terms of raising stakeholders'awareness of the importance of non-technological innovations,
the benefits of careful business model selection, and related organisational innovations, etc. In summary, this programme has raised the awareness of innovation performers to the fact that non-technological factors are important prerequisites for turning an invention into a business success. Some external factors have had also an impact on the efficiency of policy delivery.
the interviewed stakeholders unanimously opted for the Central Hungarian Innovation Prize (CHIP) founded by INNOREG.
Stakeholders'selection is motivated neither by the availability of credible evidence of success, nor by the strategic orientation and real innovativeness of the scheme but rather by the fact that this was the only scheme established at the regional level.
and regional stakeholders were simple intermediaries in these programmes. CHIP was founded jointly by INNOREG and the Central Hungarian Regional Development Council in 2007.
The idea of establishing a similar prize at the regional level was criticised first by national innovation stakeholders,
'This prize includes a voucher that entitles the recipient to a package of Innostart's (INNOREG's founding organisation's) innovation management services. 3. 4 Portfolio of innovation support measures Given that the majority of national innovation activity
institutional capacity building and the functioning of institutions responsible for the coordination and governance of the regional innovation system R&d performers'investments into R&d infrastructure;
Innovation performers'purchase of research and technology services; Innovation stakeholders'participation in international projects; and Technology-oriented entrepreneurship.
INNOREG's policies have focused mainly on the promotion of regional innovation culture (section 3. 1). Other policy initiatives included project generation:
in a co-operation agreement between Innostart and the Hungarian Academy of Sciences (HAS), Innostart's experts screened the research results of various HAS-institutes
and selected the ones with promising commercialisation opportunities. The third constituent of the regional innovation policy mix (though its management was decentralised not) was the Central Hungarian Operational Programme.
and of health and educational services). 80%of projects that have received support from CHOP targeted innovation in one form or another,
as well as to non-technological innovations (e g. quality certificates, e-services, etc.).Projects of CHOP that supported the establishment and the development of industry-university R&d centres, innovation and technology parks,
e g. they supported the establishment or the development of technology incubator centres, and technology-oriented industrial parks.
The innovation activity of regional stakeholders was targeted specifically by the Economic Development Operational Programme (EDOP),
according to the interviewed stakeholders EU Structural Funds co-financed policy schemes provide by far the largest amount of support to regional innovation objectives.
development of science and technology parks, clusters'infrastructure, investments into universities'and PROS'research lab equipment etc.
While the 2004 RIS specified only horizontal priorities including 1) the improvement of the business environment for regional SMES
(and enhancing their commitment to co-operation with other regional actors, multinational enterprises, innovation intermediary agencies etc.);
because private firms have recognised the opportunity of supported research projects and have complemented the initial funding with their resources
services and solutions, participated in international projects and were represented in international and EU-level events (CEBIT,
which national innovation policy stakeholders could discuss it with the representatives of business and academia.
The main success factors of the‘pole programme'were the activity and the ambitions of stakeholders in the three selected sectors.
They have recognised the opportunity offered by the initial document (i e. the‘Strategic Concept of Budapest Development Pole')and have participated systematically in all kinds of related tenders.
They have achieved thereby a range of complementary investments that support the given scientific and technological fields related to their RTDI efforts.
even if according to stakeholders the project cofinancing type coordination i e. the lack of a targeted national programme that would fund the implementation of the programme was an important deficiency. 3. 6 Future orientations
and opportunities We can conclude this report by reiterating the main lesson, the case of
innovation policy stakeholders (at all levels) have failed to maximise the impact of policy intervention. As a consequence of a lacking vision (and mid-term strategy) and of the failure to position this spatial unit in the national innovation system,
the spontaneous development of stakeholders was not reinforced by policy levers. Deficiencies in strategy design and implementation
Due to regional innovation intermediaries'systematic work, regional SMES have accumulated some knowledge about the available innovation management services
and implemented in a partnership-based process with regional stakeholders. In the case of knowledge-intensive capital regions where national innovation activity shows a high concentration
CH's innovation policy stakeholders have to become more proactive, launch bottom-up initiatives, and contribute to the positioning of the region both at the national level and internationally.
Future opportunities depend on the direction of the restructuring within the regional and the national innovation systems.
the HEI-and the PRO-based regional innovation stakeholders to pursue their activities within an increasingly centralised system:
grab the funding opportunities offered by the Structural Funds, carry out RTDI activities, try to commercialise the results,
and exploit the opportunities European and global linkages offer. 28 Appendix A Bibliography Ágh A. 2007):
The role and the growth perspectives of creative and cultural industries in the economy of Budapest Metropolitan Region.
Synthesis Report for the European commission, DG for Regional Policy, on behalf of the network for European Techno-Economic policy Support (ETEPS AISBL) http://ec. europa. eu/regional policy/sources/docgener
/studies/pdf/2010 technological change. pdf 30 Appendix B Stakeholders consulted 1. Zoltán Hantos, vice-president of CHIC, Central Hungarian Innovation Centre (5 october 2011) 2
Central Hungary Regional Innovation Prize Support of commercialisation of innovations in the Central Hungary region Support of enterprises'complex technological innovations in the region of Central Hungary Policy
CHIC Central Hungarian Innovation Centre Economy The region's GDP per capita was 4, 387 thousand HUF (€17. 461 1) in 2008, the highest in Hungary.
The region's economy is centered around services: they account for more than 77%of gross value added in the region (82.2%in Budapest),
The number of companies with foreign capital was 20,328 (2008), representing 70.1%of total. The share of the regional stock of FDI in Hungarian total was 64.4%.
However, this performance is concentrated to the capital, Budapest and its agglomeration. Thus, inside the region, there are at least three distinct parts with different level of development, different economies etc.
The region, and inside it Budapest is specialised to a great extent on services, and it is the hub of creative, knowledge based activities in the country, such as R&d, computer activities, informatics, business services etc.
Related employment is concentrated here and agglomeration effects play an important role in the location of these.
Its share in the value added of these activities amounts to more than half of Hungarian total. 1 Annual average exchange rate:
Eötvös Lorán University and University of Technology and Economics. It is home mainly to ICT firms and to the European Institute of Innovation & Technology.
but the number of incubators is relatively low. As for innovation output indicators, in 2008 the number of Hungarian and foreign language publications related to Central Hungary was 12,816 and 10,141, respectively,
its members are Budapest Enterprise Agency, CHIC Central Hungarian Innovation Centre, Business Innovation Centre Gödöll, INNOSTART National Business and Innovation Centre, Pest County
Foundation for Enterprise Promotion and Pro Régió Agency Central Hungary Regional Development Agency Ltd. INNOREG participates in innovation strategy design as well as in the measurement of regional innovation and in the monitoring and evaluation of regional innovation programmes.
to provide innovation services and to integrate them into a unified system. unified system. In 2004, an innovation strategy document was prepared.
improvement of the environment of SMES, development of products and technologies, spread of innovation culture.
monitoring demand from multinationals, improving conditions of access to capital, promoting cooperation between companies (clusters and virtual companies).
Emerging hot technological fields are numerous. Accredited clusters operate among others in the production of medical instruments, in biotechnology, in packaging techniques, in multimedia, in information technology, in ecology and in sewage technology.
foundations and collaborating private enterprises. In INNOCSEKK and INNOCSEKK plus, innovative projects of private companies were funded.
Support infrastructure Presentation of the measure It is aimed at supporting innovation in small sized enterprises, stimulating demand for innovation services,
The preparation of feasibility studies can also be supported as well as the procurement of incubation or of R&d services, of consultancy services, market research services, IPR-related services, patent/trademark application etc.
Keywords Applied business research Innovation support services Knowledge transfer Budget, source and type of funding Currency:
technologies and services and to support co-operation between R&d institutes and companies. Priority is given to projects
They have surveyed their investment needs in R&d infrastructure and built linkages with interested industrial partners, planned joint research actions that will partially be supported from the budget.
An annual prize for innovative micro small and medium sized enterprises of the region which achieved outstanding results based on an innovation (product, service, technology,
for the period 2007-9.)The winning enterprise is entitled to present the prize on its documents and PR materials.
and worthy of policy learning The measure has achieved its intended targets in terms of results (e g. number of enterprises investing in innovative projects,
Supported activities also include the procurement of production machinery related to the new prototypes and the hiring of new employees.
Keywords Small and medium-sized enterprises Intellectual property rights Entrepreneurship Budget, source and type of funding Form of funding provided Grants Policy learning Extent to
of measure Support of enterprises'complex technological innovations in the region of Central Hungary Full title Vállalatok komplex technológiai innovációjának támogatása a Közép-magyarországi régióban Duration From:
It tries to increase the attractiveness of the region for knowledge-based and high-tech enterprises, by supporting investment into university-based R&d infrastructure.
The priority of innovation-oriented development for example prescribes an annual increase of 14%of companies'R&d expenditures and an increase in support related investments of HUF 85b.5
Pro Regio Agency Content The strategic aim of the region is"to become a quality-based, affordable and pleasant region, providing a healthy environment for those living and working here,
supporting innovation oriented developments, improving human resources, improving public services, revitalisation of natural environment, developing the region's transport structure.
at enabling companies to become suppliers and through experimental enterprise development projects supporting R&d&i, and the use/application of their results.
1. improvement of the environment of SMES, 2. Development of products and technologies, 3. Spread of innovation culture.
monitoring demand from multinational companies, improving conditions of access to capital and current assets, promoting cooperation between companies (clusters and virtual companies),
development of human resources of the demand and supply sides, presenting and spreading modern product development methods.
For this purpose, it pursues a unified regional policy with an emphasis on services industry based on knowledge, agriculture based on ecology, the development of the business and cultural service sectors,
and the establishment of a favourable environment for investors. Activities The Pro Regio Agency plays a central part in regional planning and development.
to promote the innovation-and enterprise-oriented development of the knowledge economy; To prepare a map of the activities of organisations taking part in the innovation process,
To improve regional stakeholders'awareness of and commitment to innovation; To carry out a range of innovation management services
and contribute thereby to the expansion of innovative SMES in the region. Activities In correspondence with its specific aims, Innoreg provides the following services:
Research of international trends, preparation of strategic forecasts, analyses and comments/suggestions. 1. Creation and maintenance of a databank about R&d activities in the region,
and about the main stakeholders: organisations, institutions and private persons. Integration of these data into the countrywide information system. 2. Evaluation and registration of innovation centres, incubator houses and technology centres. 3. Information provision about funding opportunities for innovative SMES,
and partner search for joint applications. 4. Development of the network of technology transfer and innovation centres, dissemination of knowledge for innovation. 5. Organisation of innovation prizes, exhibitions,
media events that provide publicity to innovative actors'results. 6. Promotion of the diffusion, production and use of new products and technologies by information provision about access to venture capital or to business angels
'services etc. 7. 8. Consultancy services in technical and legal areas. Organisation MAGYARORSZAG KOZEP-MAGYARORSZAG Region Kozep-Magyarorszag NUTS Code HU10 Organisation Valdeal Innovations Zrt.
to bridge the gap between science and business in Hungary by providing complex business incubation and acceleration services,
to be a reliable partner of Hungarian inventors, innovative small and medium sized enterprises, universities, research organisations and investors in Hungary and in Central europe,
With its services it also intends to contribute to the development of the technology standards of SMES
and promote entrepreneurship, as well as aid up-to-date product development and project management methods.""""CHIC aims to be a centre of excellence in the following areas:
Enterprises involved in utilization of renewable energies, Research in connection with the modern information society Teams that operate internet based"knowledge-banks"Organisations working in the field of knowledge-management (e g.:
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