Synopsis: Entrepreneurship:


national_smart_specialisation_strategy_en.pdf

35 2. 2. Introduction of the S3 stakeholders...36 2. 3. Planning of the National Smart Specialisation Strategy...

Distribution of the gross added value by sectors of the economy in 2012,11 Figure5: Distribution of the added value of the manufacturing industry in 1995 and in 2012(%)12 Figure 6:

R&d expenditure per researcher of the business sector in some key branches and sectors of the national economy (HUF million per researcher, 2012)..20 Figure16:

Share of innovative companies among the services...21 Figure18: Share of companies engaged in innovation in the manufacturing industry...

Foreign Direct Investment FET...Future Emerging Technologies FIEK...Higher education and Industrial Cooperation Centre FP7...Framework Programme for Research and Technological Development FTE...

Information and Communication Technology IUS...Innovation Union Scoreboard JRC...Joint Research Centre A Directorate-General of the European commission.

Small and Medium-sized Enterprise KMR...Central Hungarian region KSH...Central Statistical Office KTIA...Research and Technology Innovation Fund ME...

Ministry for National Economy NKFIH...National Office for Research, Development and Innovation NIH...National Innovation Office NIT...

Strengths, Weaknesses, Opportunities and Threats TO...Thematic Objective TEÁOR...Single classification system of sectoral activities S&t...

as well as the development of information and communication technologies only if that country has a smart specialisation strategy

Another problem is the low rate of the use of preventive health services: this is clearly shown by that in only a little more than a quarter of the adult population participated in a chest examination in 2012.

%and the Czech republic (7. 5%).The proportion of the resources devoted to state curative-preventive services to the GDP fluctuated around 3%in recent years. 1. 1. 2. Sustainability The preservation of the health of the society

The environment is also a priority objective in the OECD classification system of socioeconomic objectives according to the data of the KSH,

however, be noted that the expenditures of the national economy for environmental purposes have stagnated in recent years. 9 Figure1:

NIH RDI Observatory on the basis of KSH data The role played the by manufacturing industry is outstanding in the distribution of the gross added value by the sectors of the national economy (22.7 percent.

since 2005 (2012: 3. 8%).The share of the information and communication sector is steadily increasing. 11 Figure4:

Distribution of the gross added value by sectors of the economy in 2012,%Source: KSH The sectoral distribution of the added value of the manufacturing industry has gone through a significant change in recent years:

while the added value 13 produced by the industry is produced higher that by the services in the northwestern counties (Fejér, Komárom-Esztergom,

the sectors of the national economy are shown in an aggregated manner. 2 Issued annually, the report evaluates the innovation performance of the European states on the basis of a total of 25 aspects of 8 dimension (human resources,

R&d system, finance and subsidies, corporate investments, relationships and entrepreneurship, intellectual property, innovators, economic impact.

Information and communication has a share of 5. 9%.Within the manufacturing industry, pharmaceuticals has the greatest weight,

the large companies spend 30%more money on R&d than the micro, small and medium sized enterprises combined.

While only 4. 1%of the R&d expenditures of large enterprises comes from public sources,

the same ratio is 18%for the medium-sized companies and over 40%for the micro and small enterprises.

foreign resources exceed 20%in the case of the large enterprises, but finance only one-tenth of the expenditures of the small businesses.

The demand for expenditure of the R&d activities of the various sectors are largely different (mainly due to the technology, the specificities of the sector, the value of the infrastructure,

At the same time, the expenditure demand per researcher of other sectors having a large share of the GDP (e g.,

Of particular interest is that the resource demand per researcher of the highly innovative infocommuncation services,

which are 20 increasingly important from the perspective of the economy, is only slightly above the average of the national economy.

Figure15: R&d expenditure per researcher of the business sector in some key branches and sectors of the national economy (HUF million per researcher, 2012) Source:

Own calculations of NIH RDI Observatory on the basis of KSH data In Hungary, one-fourth of the small businesses and nearly half of the medium-sized enterprises are innovative.

However, seven out of ten large domestic companies are engaged in innovation activities. Nevertheless, the companies of the EU are even more innovative:

Share of innovative companies among the services Source: Eurostat, CIS, 2010 data Of the manufacturing industry sectors, pharmaceuticals achieved the best results,

%Of the service sectors, the companies of the information and communication sector emerge, where 48.4%of the companies of the sector are innovative.

The proportion of companies engaged in technological innovation is 18.4%of the national economy, while the average of the manufacturing industry is somewhat higher,

and these data also show a high degree of R&d centralization in the capital. 23 Figure19:

%The share of ICT services was 5. 9, %while that of the agriculture was only 1. 2%.The rates within the manufacturing industry are shown in the figure below:

and the utilisation rate of preventive health care services is low. However, the level of health care expenditure is average compared to countries in the region.

As regards the protection of the environment, there are areas capable of demonstrating a significant improvement,

(but the spendings on the environment are stagnant). Hungary's energy efficiency and the share of renewable energy sources in the total energy consumption have increased significantly.

and the share of information and communication are increasing. The sectoral distribution of added value in the manufacturing industry has undergone significant changes in recent years:

while the added value produced by the industry is higher that that produced by the services in the northwestern counties (Fejér, Komárom-Esztergom,

while the resource demand per researcher of other sectors with a higher share of the GDP (e g. the automotive industry) is below the national average.

In the case of the ICT services the resource demand per researcher is just over the national average.

The sectors differ greatly in terms of the proportion their companies are engaged in R&d activities: of the manufacturing sectors, the pharmaceutical industry achieves the best results,

Of the service sectors, the companies of the information and communication sector emerge. The R&d as a whole shows a picture of regional disproportions.

ehealth The ICT solutions can help improve the health care services and reduce their costs, as well as contribute to solving the major challenge for European health care systems, namely the problem of"ageing Europe".

Despite the significant market opportunities, the barriers to market development are still there. By encouraging innovation and introducing more effective processes

and technologies, there are significant opportunities for improving the efficiency and the capacities. Renewable energies Here, the initiative refers to energy sources that are extracted from regenerative energy sources, such as wind, solar, biomass, biodegradable waste or feedstock, geothermal waves, tidal and hydropower plants.

where competition and consumer access stimulate growth and innovation. Functioning as the engine of the new type of growth,

4. Boosting social enterprises, cohesion and consumer confidence. Global value chains7 In today's globalized world,

and the competition between the countries primarily means how each country can join and which part thereof in a structure 6 http://ec. europa. eu/internal market/smact/docs/single-market-act2 hu. pdf 7 For the role of the global value chains in the international economy,

and their consequences on the nation's economic policies, see e g. OECD (2013: Interconnected Economies Benefiting from Global Value Chains. http://s3platform. jrc. ec. europa. eu/documents/10157/46174/Interconnected economies. pdf 28 created by the multinational companies.

In order to better understand the value chain, it is essential for the national economy to have proper insight into the global value movements of trade.

The global value chains allow the companies and the economies to carry out that part of the process,

which are the best at. Since they use intermediate goods and services produced elsewhere, they do need not to build an entire industry.

To move up in the value chain knowledge-based capital and development play a key role.

Intangible assets, innovation, intellectual property and human resources are the elements in which each country must be competitive to be able to assume an increasing role within the value chain.

Competitiveness needs comprehensive strategies, among other things, research and development, innovation and training in the field of the science and the economy.

Cross-border collaborations Bilateral and international collaborations, joint international projects and programmes, as well as the programmes promoting the mobility of researchers,

improve the competitiveness of the innovative sectors of the Hungarian economy, and help mapping and utilizing the opportunities for Hungarian participation on RDI-related large international projects.

Participation in major international programmes and projects CERN EFDA-JET (EURATOM) ILL EMBL SHARE ECRIN CENTRAMO Seventh Framework Programme for Research and Technological Development

as well as to keep its leading role in the global knowledge-based economy. The experience and the FP7 framework programme of the 2007-2013 planning period proved that the Hungarian candidates are successful in the competition for resources 29 directly accessible from Brussels. During this period

every fifth application submitted from Hungary won, a success rate corresponding to the EU average.

and the neighbouring countries Hungary has collaboration with in relation to RDI and the economy, and the areas thereof.

In addition, there has been recent progress in the cooperation of the research and development and innovation-oriented enterprises of Hungary and Vojvodina.

Sustainable environment and tourism are highlighted as the targets of cooperation. Strengthening the cooperation in energy policy also has a key role. 1. 5. SWOT Strengths Education, training, research background:

Research and innovation environment, organisations, infrastructure and services: R&d knowledge centres have developed with concentrated R&d capacities in some places.

The uncertainties in the environment for education and the falling prestige of the teaching profession hinder the supply of talents and researchers.

Lack of entrepreneurship in the universities and research institutes, which can be caused by the sometimes contradictory and vague legislation and, in a sense, the over-regulated system.

Research and innovation environment organisations, infrastructure and services: The socioeconomic recovery of R&d expenditures is low.

Despite the sporadically focused R&d capabilities, the research capacities and performances are fragmented fundamentally and not sufficiently focused.

The demand for the protection of industrial property rights is extremely weak. There are no established forms

or practice of communication between the SMES and the research institutes (e g.,, ordering services, use of infrastructure

etc.).) 32 The relations between the stakeholders of the R&d value chain are weak and cooperation is not efficient enough.

The technology transfer processes are not effective, the domestic innovation processes operate with low efficiency;

Low level of seed capital investment; undeveloped technology incubation processes. Opportunities Education, training, research background:

The high-quality higher education, which is currently operating in the industrial and agricultural zones, moves the big cities and their surroundings towards a knowledge-based economy,

if the university knowledge centres are strengthened and can put their research results effectively into practice and education,

and link them to the activities of the local economy. Expansion of practice-oriented training (dual training), strengthening of the education of entrepreneurial innovation management.

Research and innovation environment, organisations, infrastructure and services: Harmonised operation of STI diplomacy. The instruments prioritised by the EU((public) procurement supporting innovation (Pcp and PPI), smart specialization, etc.

Optimization of the use of available research infrastructures. 33 Strengthening RDI-friendly economic and regulatory environment.

small and medium-sized enterprises improves in the major industrial areas, and Smart production systems spread.

tech-shops) and the spreading of incubator services. Closer cooperation develops between the academic and the corporate sectors.

the presence of the multinational companies will further strengthen the local economy's integration into the global economy, the introduction of advanced technologies,

The promotion of venture capital investments will bring along more successful products and companies from the ideas;

Brain drain and migration of young workforce with higher level education. 34 Research and innovation environment, organisations, infrastructure and services:

and will be unable to generate serious demand or build capacities. Stagnant activity in the field of international RDI cooperation and programmes.

thus the industry loses its potential development (especially in the automotive and the pharmaceutical industries and the services).

Lack or insufficient level of FDI based on R&d which is integrated properly in the Hungarian economy.

Due to the lack of proper means to support RDI, Central Hungary is unable to offer further pulling force to the surrounding industrial production and knowledge centres and falls back in the international competition.

In the course of the design process, the local stakeholders representing the groups, that are the most important from the point of view of S3,

which bring long-term development to the region on the basis of the continued and systematic detection and analysis of the economy and the society of the region through the eyes of the entrepreneurs and along the interactions of the different groups,

yet avoiding the dominance of enterprises. This is the only manner the national smart specialisation strategy can become qualified to encourage the society to adopt a common vision of development and modernisation,

In June 2013, the Government of Hungary adopted the Investment in the future National Research and development and Innovation Strategy (2013-2020),

whose central objective is to strengthen the knowledge-based national economy. The development of new knowledge-driven economy can be sorted into three main processes.

These are the processes of production of knowledge, use of knowledge and flow of knowledge.

stable and innovation-friendly economic and regulatory environment. The Investing in the future Strategy is designed to increase the research and development expenses in Hungary to 1. 8%of the GDP by the end of the decade12,

and to create an environment in which the undertakings, companies and public sector organizations engaged in research and development

which are intended to make the economic growth more dynamic, expand employment and reduce the national debt to a sustainable level.

and the final concepts were approved after several rounds of extensive social discussion. 2. 2. Introduction of the S3 stakeholders The full spectrum of interested stakeholders has been involved in the design of the National Smart Specialisation

and innovation has come to the light through the growth of the knowledge-based economy and the perfection of the knowledge-based society.

and, after recognizing the impact of the (natural) environment in innovation, the Quintuple Helix Model (Carayannis Campbell 2012). 37 Table 1:

and local government organisations Ministries National government offices County governments County government offices Local governments of cities of county rank Economy Innovative enterprises Large enterprises SMES (including micro,

. The S3 planning process The Investment in the future National Research and development Strategy (2013-2020) considered the smart specialization strategy (S3) only as a complementary strategy.

and updated the regional innovation strategies with the involvement of the local stakeholders in the spring of 2013.

and arranged by the Ministry of National Economy (NGM), the Regional Innovation Agencies and the National Innovation Office (NIH).

The potential specialisation directions formulated in the White paper also require bottom-up construction, based on the widespread participation of the regional stakeholders,

In the autumn of 2014, two-round S3 county workshops were held in all 19 counties with the involvement of the every local decision-maker and enterprise.

which ensures the mobilisation and involvement of the local stakeholders. The counties are responsible for establishing the specialisation directions with the involvement of all stakeholders by setting out from the local and regional experience and building on the own knowledge and information of the participants.

In developing smart specialisation the counties are required to present sectors, areas of expertise, methodologies, technologies and measures

universities, research institutes, platforms, clusters, technology transfer organisations and incubators civil organisations and chambers entrepreneurs:

The quadrilateral discussions (quadruple helix) of the Local Research Priorisation Working groups, on-line questionnaire available on the S3 website and the interface for commenting the strategy allowed the stakeholders to tell

and share their suggestions concerning the triangle of the economy, science and innovation. The control structure and policy measures supporting the implementation of the national S3 have been created as a result of the meetings, discussions and debates of the inter-ministerial and professional working groups.

through its resource absorption ability and resource utilisation efficiency, contributes to building an economy which is competitive in the European context.

It is also responsible for communication with the other regional, national and international institutions and bodies involved in the S3.

Administrative bodies responsible for the operational programmes Operational Programme Responsible ministry Economic Development and Innovation Operational Programme (EDIOP) Ministry for the National Economy (NGM) Competitive

Central Hungary Operational Programme (CCHOP) Ministry for the National Economy (NGM) Human resources Development Operational Programme (HRDOP) Ministry of Human Capacities (EMMI) Rural Development

while observing the local needs and opportunities. The process is designed to enable the individual Member States

so that they significantly contribute to improving the competitiveness of their economies and the Union and developing a sustainable knowledge-based economy.

Hungary plans to become a knowledge economy by the end of the decade, where internationally competitive knowledge bases and intensive knowledge flows are created and,

Another important consideration is that the Hungarian economy should be sustainable from the environmental, social and economic aspects alike,

the needs of the social communities and the dynamics of the economy evolve in the most favourable manner.

Another comprehensive task of the national S3 is to enable the stakeholders, namely the public administration, the economy and the civil society,

the regions will have the opportunity to set up their own knowledge centres along the specialisation directions and,

To do this, the cooperation and supportive approach of the local stakeholders are essential. EDP has a key role to play in the continuing and extensive involvement of the actors involved,

and that the stakeholders identify with the objectives. It is also indispensable that the four key actors (business

and exploit the opportunities for cooperation at the local level in respect of all three visions.

in the course of which the main sectoral specialization directions were determined inhas also consultations with the involvement of external experts and local stakeholders.

SMES, large companies, spin-off companies, start-ups, incubators, investors, clusters, RIA's, technology transfer organizations, industrial and science parks, etc.

research-development and innovation directions of specialization on the basis of substantiated status analysis, entrepreneurial attitude and the consent of the representatives of entire circle of stakeholders.

and determine inter-sectoral and technological development opportunities at a satisfactory level. It has been important that the priorities should try to diversify the development directions.

but support inter-sectoral relations as well21, are designed for the smart transformation of the economy. 4. 3. 1. National specializations In accordance with the above chapters,

of which possibilities are provided directly to the economy or the society to use significant applications. In the industrial production zones, production, manufacturing industry

making the environment liveable and increasing the retention force of the region through the utilization of the latest research results, the use of modern technologies, equipment,

the smart specialization areas can prevail particular in the following areas of science and sectors of the national economy:

on the other hand, gives an opportunity to innovation in the health tourism. Hungary has exploitable resources in the latter area also in respect of the medicinal waters,

"59 Sustainable environment natural resource management, advanced environmental technologies The priority is aimed at promoting the sustainability of the environment and natural resource management (e g. environmental biotechnology) through the research and development of modern technologies and the implementation of the environmental

The sustainability of the environment is supported also by the solutions for the innovative exploitation of the natural resources (such as drinking water, mineral resources and arable land.

Such complex agribusiness developments should be implemented that represent an opportunity to use innovative R&d solutions in crop production and protection technologies

ICT (infocommunication technologies) & Services infocommunication technologies in support of the sectoral priorities, infocommunication technologies and services Infocommunication technologies extensively encompass

system cloud computing intelligent transport development of mobile applications, location-based services 3d GIS bioinformatics Internet of things 3d printing future internet 5g technologies remote

In addition to infocommunication technologies, services mostly using ICT tools without which the given complex (sectoral) RDI process could not be implemented constitute the other side of technological horizontal priority.

which is a key sector of the national economy, to facilitate the implementation of complex RDI activities.

Inclusive and sustainable society, viable environment education and training, health-conscious education and prevention, awareness raising, promoting entrepreneurial skills,

thus creating a synergy between economy, society and democracy. 24) 4. 3. 3. Smart technologies In determining the county specializations,

Therefore the primary objective behind the assessment of county specialisations has been to make the sectors and technologies with sufficient critical mass/potential visible, with the involvement of local stakeholders (EDP.

viable environment ICT (infocommunication technologies) & Services Healthy society and wellbeing biomedical research clinical research diagnostics, theranostics production of medical instruments and devices medical biotechnology, systems

irrigation technology, soil improvement horticultural technologies environment-friendly plant production and crop protection technologies animal production and veterinary medicine technologies viticulture and wine growing aquaculture 64 forestry

Hungarian specialities) Sustainable environment+Clean and renewable energy+Healthy society and wellbeing innovative natural resource management:

, liveable environment introduction of the use of computer-based instruments, developer software and measuring-control instruments in dual training 65 4. 4. Links of the National Smart Specialisation Directions to the Horizon 2020 programme The pillars

Sustainable environment Europe in a changing world Inclusive, innovative and reflective societies Inclusive and sustainable society, viable environment Science in the society for the society Inclusive and sustainable society

, viable environment Horizontal elements H2020 Priority ICT ICT and services 66 4. 5. Relationship with the Smart Specialisation Strategies of the Visegrád Countries and the Danube Region

Biomedicine and Biotechnology Environment belong to this area in the Slovak strategy. Although biotechnological development includes several agents,

Health in Slovenia and Romania, Health Technologies and Services in Estonia are included as key priorities. 25 http://www. Visegrádgroup. eu/67 One of the main objectives of the Europe2020 Strategy of the European union

Slovakia highlights the Environment and Agriculture sector as a national priority, similarly to Poland where Agri-Food,

Hungary has the opportunity to cooperate with the neighbouring countries in several various potential RDI-related areas of expertise in the next period.

Romania and Croatia is directions of specialization like cloud-based services or ICT security. The mining and raw material industry offer an opportunity for international cooperation with Bosnia and herzegovina

in particular in the field of mining machines and technologies, as well as the raw materials processing machinery and technologies. 69 5. Policy instruments 5. 1. Consistency with the key planning documents and programmes National Reform Programme In the framework of the National Reform Programme,

credit, leasing and venture capital programmes, as well as the introduction of guarantee products. Investment in the future National research and development and innovation strategy 2013-2020 The National S3 Strategy defines the territorial-technological-sectoral projection of the"Investment in the future, National Research & development and Innovation Strategy 2013-2020"(hereinafter,

the"RDI Strategy")adopted by Government Decree 1414/2013. VII. 4). In order to ensure that the state and public sources spent in the RDI sector in Hungary become investments in the future,

the RDI strategy is built around three priority axes: internationally competitive knowledge bases, establishing economic and social development,

provide a framework for the implementation of the national S3 specialization directions defined by the county stakeholders in the National S3 Strategy.

and higher education institutions and undertakings at Union level, increasing the social capital of the national institutions and exploitation of opportunities for cooperation with internationally renowned institutions.

since they can be used for providing targeted sources to the stakeholders while reasonably balancing risk-sharing.

there is an opportunity to reduce the taxes and charges on employment of personnel participating in research and development activities

so it plays an important role in the site selection decisions of large enterprises (National RDI Strategy).

In addition, the benefits derived from them emerge clearly only over a longer period of time. 72 5. 2. 3. Market instruments The market incentive instruments include the demand-side interventions of the state, the precommercial procurements (PCP) 27

Within the financial instruments, the various capital programmes are becoming increasingly important and enable the companies engaged in research and development to obtain, among other things, seed or venture capital investments.

Export guarantees, as a"semi-market"form of grant, offer collateral bank guarantees primarily to medium-sized and large corporations.

of which investments related to RDI are supported particularly. The capital asset investment credit for export is another type of special subsidised loan,

which may be granted for an investment in order to promote increased domestic supply production that in turn generates additional export revenue for the investing entity.

Targeted state support is particularly important in the capital and credit markets where there are market failures. 5. 2. 4. Funding principles Application of types of intervention instruments adjusted to the target area Compared to the period between 2007 and 2013,

the share of financial and direct instruments of financial support has increased against the nonrefundable supports within the Operation Programmes.

The consistency and links between the interests of the various stakeholders is one prerequisite of a well-functioning innovation system.

For the same purposes, it is deemed necessary to improve the legal environment related to intellectual property protection,

seeks tenders for innovative products and services which are not available based on a commercial basis

, by means of the accessible services of business incubators funded by the state in a structure compliant with the market, supported venture capital constructions and guarantee funds,

the services provided by trading houses, who can help in identifying the export markets and market access.

The weaknesses of the financing of innovation can already be managed through financial instruments in this stage, e g. by means of refundable (loans with a preferential interest rate) and combined grants, a demand for

as factors of competitiveness of the Hungarian economy-In: PM Research Papers No. 6. 74 5. 3. Intervention matrix Grouping of policy instruments by thematic objectives and types of instruments Direct instruments Thematic priority Policy measures

, investment priorities Specific objective Financing fund Operational programme Strengthening research, technological development and innovation Improving research and innovation (R&i) excellence,

Promotion of R&i investments of undertakings and creation of links and synergies between research and development centres and the higher education sector, particularly with regard to product and service development, technology transfer, social innovation, eco

-innovation and public service applications, demand stimulation, networking, clusters and investments into open innovation through smart specialisation;

Hungarian Region Promotion of R&i investments of undertakings and creation of links and synergies between research and development centres and the higher education sector, particularly with regard to product and service development, technology transfer, social innovation

eco-innovation and public service applications, demand stimulation, networking, clusters and investments into open innovation through smart specialisation;

KTIA CCHOP Increasing knowledge capital In the framework of smart specialization, specializing the profiles of the research institutes, higher education institutions, clinics, health care research institutions and research hospitals, building of the knowledge triangle,

Increasing research, innovation and smart specialisation in human areas ESF, KTIA HRDOP Infrastructural investments in order to strengthen social cooperation Supporting regional service providing higher education

and labour market and the knowledge and technology transfer services (particularly in smart specialisation). Improving the quality, efficiency and openness of tertiary and equivalent education with a view to increasing participation and attainment levels, in particular to disadvantaged groups ERDF,

KTIA HRDOP Infrastructural investments Improving the system of conditions of discovery research along the smart specialization;

KTIA HRDOP 75 Infrastructural investments Promoting the purchase of devices and instruments in higher education, which relate to smart specialization

and the innovation capacity of the agricultural enterprises-Improving the efficiency of energy use of agricultural production-Keeping the rural population in place by strengthening the agricultural supplementary activities-The targeted support of young farmers to promote a generational change

the strengthening of the role of forestry in the bio-economy-Strengthening of the public welfare and tourism potential of forests EARDF, KTIA RDP Strengthening of cooperation between the stakeholders in agribusiness and certain stakeholders

and national quality systems and voluntary agricultural product verification systems-Development of short supply chains-Enhancing the use of environment-friendly technologies, the development of environmentally conscious farming Maintenance

and nutrients-Developing environment-friendly technologies, promoting eco-innovation-Increasing the number of starting rural businesses,

and promoting the sustainable operation of the already running businesses-Promoting special economic activities based on internal resources in regions with a shortage of human resources and undertakings-Strengthening the cooperation between the stakeholders in the rural economy-Managing the problems

KTIA RDP Agricultural innovation-Realising the operation of demand-based consultancy system, concentrating on sectoral target groups-availability of local planning,

KTIA HFOP 76 including also the related processing Capital market instruments Thematic priority Policy measures, investment priorities Specific objective Financing fund Operational programme Strengthening research

, technological development and innovation Promotion of R&i investments of undertakings and creation of links and synergies between research and development centres and the higher education sector,

particularly with regard to product and service development, technology transfer, social innovation, eco-innovation and public service applications, demand stimulation, networking, clusters and investments into open innovation through smart specialisation;

and innovation performance in agribusiness undertakings Strengthening of cooperation between the stakeholders in agribusiness and certain stakeholders in research and innovation,

and the advanced production capacities and test production of basic technologies promoting the R&i investments of businesses Creating relationships and synergies between businesses,

and innovation performance in agribusiness undertakings Strengthening of cooperation between the stakeholders in agribusiness and certain stakeholders in research and innovation,

and innovation performance in agribusiness undertakings Strengthening of cooperation between the stakeholders in agribusiness and certain stakeholders in research and innovation,

A pilot project is targeted a RDI support instrument among real conditions and with a small investment of time and budget,

and the associated research services, can be used by anyone, ranging from private individuals through private entrepreneurs to SMES.

where new technologies, products and services can be developed. The"pilot"would be created by opening an existing laboratory or research infrastructure.

and partnering between higher education institutions, academic research organisations, public nonprofit research organisations, other public research organisations, research and technological centres, large enterprises and micro-,small-and medium

-sized enterprises. They support the innovation activities of undertakings (mainly SMES) that are either inadequately

In addition, external partners, in particular micro-,small-and medium-sized enterprises can use their research and development services.

Any micro-,small-and medium-sized enterprise can apply to use RDI services; it is the aim that this opportunity will be available to the broadest possible target group.

The small-and medium-sized enterprises could win vouchers by tendering procedure, which would serve as a means of payment

in order to obtain various RDI services (order of R&d, measurements, support for the development and market introduction of a new prototype, ensuring technical/engineering background) from the open laboratories The resources necessary for the expansion

and maintenance of the"open lab"would be covered from the operating income from the voucher system.

Open laboratories induce the following positive changes: the R&d infrastructures become more widely visible, the SMES are given an access (in a regulated and transparent manner) to tools of adequate capacity and quality,

Several higher education institutions, research institutes, many large companies and small and medium-sized enterprises are involved in the collaboration along the"quadruple helix".

the needs of the economy appear in the education and research directions of higher education, 80 thus,

which creates the demand-side incentive of innovative economic activity31, is an important objective of the EU. The potential in the (public) procurement of innovative solutions (PPI) can greatly contribute to allow the new prototypes,

products or services without a reference to have tested themselves and even win, thereby ensuring the continuity of the innovation chain;

savings can be achieved in the budget spent in public procurement on an annual basis, so the savings can be used for supporting additional RDI;

quality improvements can be reached in the public services through the demand-driven and tailored procurement structures;

the micro, small and medium-sized enterprises are given new orders, which have so far proved to be inaccessible for them.

and strengthens the innovation from the demand side. Through public-private partnerships, the procurement process based on shared risks

products and services that provide a modern solution to the problems of public institutions. In the course of the four-stage Pcp process (design contest feasibility study prototyping precommercial deployment testing

which satisfies mass demand (and it is not only a solution to individual needs) and can be bought by anybody.

The Hungarian legal environment should not be amended currently to launch the Pcp experimental programme. One of the tasks of the pilot programme will be to examine how the domestic application of PCP will require amendments to the existing regulations

Summary of the Feasibility study on future EU support to public procurement of innovative solutions http://ec. europa. eu/enterprise/policies/innovation/policy/lead-marketinitiative

/files/meeting-procurementfeb2012/summary-eu-supportpublic-procurement-innovative-solutions en. pdf 81 Incubator programme The technology incubators have become an integral part of the economic policy toolkit of the developed

Taking into account Hungary's innovation abilities, opportunities and human potential, supporting the operation of start-up companies built on technological innovation brings along significant socioeconomic benefits.

Corporate incubators represent a complex service system or a kind of protected business environment provided to the technology start-ups on a temporary basis. It aims to provide resources,

capital, knowledge and relationships to the companies, thereby improving their chances of survival in the initial stage of their careers.

Hungary has started a shared understanding between the government and the business operators on the promotion of the domestic business incubators and the opportunities for the development of the so-called start-up culture.

including, among other things, an agreement of the government and relevant business stakeholders regarding the scope of the objectives and the agenda.

The full operation of the incubator programme is aligned to the business model and operation of start-ups, incubators and accelerators.

forms of funding to be provided to the incubators, method of accountability, ensuring the rapid response of the framework to the corporate and market developments,

The incubator programme induces the following positive changes: much more ideas and developments reach the end-product stage, Hungary hosts technological innovations,

and specialize, it mobilizes private sector capital for R&d investments32, a change of approach starts among the young Hungarian people about entrepreneurship,

opportunities, value is given to creativity, knowledge and risk-taking, the domestic business opportunities are given a value,

and the country's ability to attract capital increases, the migration of skilled workforce decreases,

the ratio of business and public R&d spending improves. 32 Most of the domestic venture capital investments between 2010 and 2013 were given by the start-ups

or the so-called later-stage venture capital transactions Seed capital investments represented a negligible share, which can be problematic in the long run in terms of the sustainability of the development of the private

and venture capital markets. 82 The pilot projects above will have an impact on the problems of the domestic RDI system

Improving the competitiveness of businesses and development of knowledge economy; budget: EUR 202.2 M (50%funding intensity;

Developing financial instruments and services; its budget: EUR 44.1 M (60%funding intensity. The operational programme is restricted in territory

and social environment. Priorities of HRDOP that are relevant to R&d: Priority 3: Increasing knowledge capital;

promoting access to opportunities of lifelong learning; updating the skills of employees, and matching education and training systems to labour market needs.

thus preserving the values of the rural regions and the economic stability of the local communities.

Beyond the developments in the form of productive investments, there is a need for product development, marketing, innovative technological solutions and increase in energy efficiency.

and the economic policy toolkits managing the resources. An important condition of the preliminary (ex ante) system of conditions of the Partnership Agreement between the European union and Hungary is that the National Smart Specialization Strategy should present the EU and domestic sources available for domestic

impact of the RDI activities of large companies on small and medium-sized enterprises and the research infrastructure.

and the possibility of local stakeholders to participate in it x 1 Recommended S3 rounds of review x x 1, 2, 3 Recommended county-level consultations x x

x x to be elaborated Pilot incubator programme x x x x 1 Elaboration of further pilot projects x x to be elaborated 1-professional supervisor and controller;

the reviews provide an opportunity for methodologically sound recommendations on how the resources can be reallocated

and inform the various stakeholders about the meaning, conditions and consequences of the examined activities (instrumental goal).

in addition to the above, the planning, management and assessment of implementation, taking into account the changes of the environment) The continuous assessment

and opinions formulated by the stakeholders in a certain form in the finished document and,

also formulated by the stakeholders, be validated in the document and its modification? Program design and modification Implementation Interim and ex-post assessment Utilisation and transfer of assessment results 90 Approved and available:

if the priorities formulated by the stakeholders in the public consultations have been integrated in the document as the fundamental and essential elements of the S3 specialisation.

and then at predefined intervals (on the basis of the latest stakeholder feedback). Basically, the indicators play a significant role in the results-oriented programmes,

the opportunities offered by the tender can be used. This is an indicator more of a technical nature,

which develop the local and the national economy. Place where the resources are spent. In addition to that this typical indicator should also report on the territorial/geographical location of the specific feature (city, area, region,

since it can be a potential breakthrough point for the area's economy. The directions and definitions of the assessment indicators extended to the monitoring system clearly show that the two inseparable components of the system create a proper combination for the operation of the system through their interdependency and cross-references.

) Tender database annually Private investment matching the support from public funds to innovation and R&d projects (million HUF) Tender database annually Ratio of external domestic researchers in the use of the research infrastructure in the past one year,


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