PAGE 1 An Innovation and Competitiveness-Centered Approach to Deficit Reduction BY ROBERT D. ATKINSON JANUARY 2014 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 In an earlier paper
PAGE 2 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 absolute budget deficit, not on the budget-to-GDP ratio, treating deficit reduction as an end in and of itself. 3 In so doing they focus too much on cutting spending and raising taxes
and software and workforce training; b. Lowering the federal corporate tax rate significantly, to around 20 percent;
PAGE 3 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 a. Increasing the Social security (and Medicare) full retirement age to 67 for workers born in 1954 and continuing to increase it by two months every year until it reaches 70;
To distinguish between taxes and PAGE 4 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 spending that support investment versus consumption,
The recent publication of the Congressional Budget Office (CBO) Options Book provides estimates of the budget savings for many of these PAGE 5 THE INFORMATION TECHNOLOGY
new equipment and software and workforce training drive PIC. However, in the last decade, the United states has fallen behind other nations in investment in these key building blocks. 8 As a result,
Congress should create a comprehensive tax credit for business investments in R&d, new equipment and software,
and a 25 percent credit on new equipment and software. Both credits should be modeled on the current Alternative Simplified R&d credit
and the machinery and software credit costing $51. 5 billion. However, once the effects of induced investment and higher economic growth were taken into account,
PAGE 6 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 Lower the Statutory Corporate Tax rate For the corporate tax rate itself, at a combined state-federal rate of 39 percent, the United states
only if it yields returns in excess of PAGE 7 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 expenditures.
science and technology, education and skills, surface transportation infrastructure and federal information technology (IT) investment. Although these policies would also increase the deficit,
science and technology, education and skills, surface transportation infrastructure and federal information technology investment. PAGE 8 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 Federal IT Investment A strategy to boost the productivity of the federal government should be a key part of any budget reduction strategy.
Mckinsey & Company finds that a 15 percent improvement in the efficiency of federal government operations could generate $1. 3 trillion in savings over the next ten years. 27 These sorts of efficiency gains have been routine
Information technology can play a key role in driving increased efficiency. Through effective use of IT
as the problems with the Affordable Care Act website so clearly demonstrated, we need a change in the rules
PAGE 9 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 The Social security full retirement age (FRA) is 66,
%80%100%201020202030old-age Dependencyyouth Dependency PAGE 10 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 federal employees.
Economists David Autor and Mark Dugan argue that the SSDI eligibility application process should focus on objective data with specific maladies for
which SSDI will be granted. 46 Increasing stringency in SSDI qualification PAGE 11 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 would increase labor force participation rates as rejected workers would be required to find jobs.
PAGE 12 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 workers in the sectors that satisfied their consumption.
One way to slow the growth of Social security retirement spending is to require progressive indexing while computing initial benefits
and other benefit programs would save an additional $55 billion. 58 Moving to the chained CPI measure PAGE 13 THE INFORMATION TECHNOLOGY
PAGE 14 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 Introduce New Taxes There are several ways Congress could raise new revenues that would have limited a impact on PIC.
The evidence in these data is that hours of work are, as found in much of the previous work,
exactly as predicted by financial experts PAGE 15 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 like Aswath Damodaran, professor of business at the Stern School of business at New york University.
and a cutback on larger investments that take longer to receive a payback. 74 Given the significant decrease in investment in structures, equipment and software by companies in the United states over the last two decades,
PAGE 16 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 decisions. Under current law, full-time employees pay a portion of their employer-provided health insurance premiums with before-tax dollars.
PAGE 17 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 ENDNOTES 1. Robert D. Atkinson Innovation Economics:
Cultivate Growth, New york times, November 16, 2010, http://www. nytimes. com/2010/11/17/business/economy/17leonhardt. html. 5. Congressional Budget Office, The Budget and Economic Outlook:
Fiscal years 2012-2022 (CBO, January 2012), www. cbo. gov/sites/default/files/cbofiles/attachments/01-31-2012 outlook. pdf. 6. For a definition
2014 to 2023 (CBO, November 2013), http://www. cbo. gov/sites/default/files/cbofiles/attachments/44715-Optionsforreducingdeficit-2 1. pdf. 8. Luke
accessed October 15, 2013), http://dx. doi. org/10.1787/strd-data-en. 18. Luke A. Stewart and Robert D. Atkinson, University Research Funding:
Leadership in Decline (ITIF, May 2012), http://www2. itif. org/2012-leadership-in-decline. pdf. PAGE 18 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 22.
A Profile (HFCA, July 2000), 12, http://www. cms. gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/Thechartseries/Downloads/35chartbk. pdf. 32.
THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 39.2012 Economic Report of the President (Civilian labor force participation rate and employment/population ratio, 1965-2011, Table B-39;
accessed October 15, 2013), 365, http://www. whitehouse. gov/sites/default/files/microsites/ERP 2012 COMPLETE. pdf. 40.
accessed October 15, 2013), http://dx. doi. org/10.1787/lfs-data-en. 41. Social security administration, Disability insurance Benefit Payments (annual benefits paid from the DI Trust fund;
Author calculations using data from SSDI website. See: Social security administration, 2013 OASDI Trustees Report (Table V. A3.
Roy Walmsely, World Prison Population List (International Centre for Prison Studies, November 2013), http://www. prisonstudies. org/sites/prisonstudies. org/files
/resources/downloads/wppl 10. pdf. 51. E. Ann Carson and William J. Sabol, Prisoners in 2011 (Prisoners under state and federal jurisdiction at yearend, 2000 2011;
Congressional Budget Office, Historical Budget Data Statistics (historical data on revenues, outlays, and the deficit or surplus for fiscal years 1973 to 2012;
accessed October 15, 2013), http://www. cbo. gov/sites/default/files/cbofiles/attachments/Historicalbudgetdata aug13. xls. 56.
Dean Baker, Thoughts on the Chained CPI, Social security and the Budget (Center for Economic and Policy PAGE 20 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 Research
December 17, 2012), http://www. cepr. net/index. php/blogs/cepr-blog/thoughts-on-the-chained-cpi-social-security-and-the-budget. 60.
accessed October 15, 2013), http://farm. ewg. org/regionsummary. php? fips=00000&statename=theunitedstates. 61. Ibid. 62.
accessed October 15, 2013), 191, http://www. whitehouse. gov/sites/default/files/omb/budget/fy2014/assets/spec. pdf. 65.
/sites/default/files/cbofiles/attachments/10-25-2012-Recent research on labor supply elasticities. pdf. 71. Moffitt, Robert A, . and Mark O. Wilhelm, Taxation and the Labor Supply Decisions of the Affluent, in Does Atlas Shrug, ed. Joel Slemrod (Cambridge, MA:
PAGE 21 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 81. Jonathan Gruber, The Tax Exclusion for Employer-Sponsored Health insurance NBER Working Paper no. 15766 (February 2010.
func=download&id=4503&chk=4503&no html=1. PAGE 22 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JANUARY 2014 ACKNOWLEDGEMENTS The author wishes to thank the following individuals for providing input to this report:
ABOUT THE AUTHOR Dr. Robert Atkinson is the President of the Information technology and Innovation Foundation.
ABOUT ITIF The Information technology and Innovation Foundation (ITIF) is a Washington, D c.-based think tank at the cutting edge of designing innovation strategies and technology policies to create economic opportunities
FOR MORE INFORMATION, CONTACT ITIF BY PHONE AT 202.449.1351, BY EMAIL AT MAIL@ITIF. ORG,
ONLINE AT WWW. ITIF. ORG, JOIN ITIF ON LINKEDIN OR FOLLOW ITIF ON TWITTER@ITIFDC AND ON FACEBOOK. COM/INNOVATIONPOLICY
2014 GLOBAL R&d FUNDING FORECAST U s. R&d investment up one percent to $465 billion Historic U s. commitment to research intensity expected to remain firm Economic growth continues to propel Asian R&d spending
Your insights enrich our ability to anticipate the outlook for R&d funding. Jeffrey Wadsworth, Ph d. President and CEO Battelle CEO MESSAGE Key Contributors Mitch Horowitz Simon Tripp Anthony Gillespie Eric Rosenberg Pamela Mccoy
For 2014, we project declines in defense and aerospace R&d, increases in energy-related research, increases in life science research and development, strong growth in information technology research investment and growth in R&d budgets for chemicals
Significant R&d investments by western countries in long-range technology platforms like robotics, highperformance computing, social media, software, costeffective energy sources and nanobiotechnology could stimulate rapid industry
R&d investments often are linked closely to GDP and economic outlook. Global R&d investments, according to our analysis, are forecast to increase in 2014 and 2015 albeit at a decreasing rate in 2015.
The exception to this outlook may be Japan, which is correlated more with trends in the U s. and Europe than with neighboring Asian countries.
Outlook The broad patterns of R&d spending are expected not to change significantly in 2014, but regional shifts are occurring.
Historic post-recession economic data suggest that private-sector R&d spending will also increase in 2014.
Factors that Influence the 2014 Outlook for U s. R&d Except for a dip in the 1970s at the point where industry surpassed government as the dominant research sponsor,
according to historic data from the National Science Foundation. Research intensity has been correlated with macroeconomic growth, and has been the foundation of U s. technological innovation.
Forecasting must also accommodate updates and corrections to historic economic data. For example, this 2014 Forecast incorporates a revision of the NSF's 2011 baseline research expenditures1.
However, the outlook involves substantial uncertainty. In one scenario, BCA-mandated continued reductions in non-defense discretionary spending could result in lower R&d funding.
that industrial R&d spending is correlated with the current economy and the stability of its outlook.
as well as the most recent data (2011) from the NSF's Business R&d and Innovation Survey (BRDIS.
Funding Trends & Outlook In response to the 2009-2010 recession, the ARRA added about $18 billion of federal investments to baseline funding for academic research.
which comprehensive data are available. Several institutions exceeded $1 billion in research that year, including Johns hopkins university (including the Applied Physics laboratory), the University of michigan at Ann arbor, the University of washington at Seattle,
THE rankings are based on teaching, research, knowledge transfer and international outlook. 0%25%50%75%100%Top 400 Top 50 Top 10 Non-u.
China's Huawei, for example, now competes for telecommunication contracts in Europe and the U s. Its related attempts to acquire U s. telecom companies have been rebuffed largely by federal regulators,
providing incentive to develop indigenous product development capabilities. Moreover, China is designing and building state-of-the-art next-generation nuclear power plants,
Long-term Outlook for R&d Expenditures Source: Battelle and R&d Magazine Source: Battelle and R&d Magazine China places more emphasis on development, less on basic research Different Priorities Among Research Leaders 14 R&dmagazine December 2013 www. rdmag. com
cost and public perceptions have weakened the outlook for nuclear energy in the U s.,Europe and Japan all three of which,
Materials Sci Chemistry Physics Mathematics Engineering Computer Sci Geosciences Pharmacology Environmental Biochemistry Source: Thomson Reuters And China originates an increasing percentage of global scientific literature.
Outlook In the second quarter of 2013, the EU emerged from six consecutive quarters of economic contraction
research, knowledge transfer and global outlook. The U k. had the largest number of European universities in the top 400 list with 29.
Clinical Med Physics Ag Science Computer Sci Ag Science Computer Sci Chemistry Geoscience Pharmacology Mat'ls Science Physics
Regulatory Context Influences U s. R&d Outlook The U s. life science industry emerged from the combined challenges of the recession and patent expirations with fresh strategies for R&d.
On one hand, expanding the number of Americans who have health insurance coverage may increase the market for medicines and treatments
and certain regulatory requirements like meaningful use of electronic data will accelerate new markets and healthcare efficiency,
U s. Firms Sources of Innovation License Technologies from Others In-house Development Industrial Collaborations Computer-based Virtual Design/Development Academic Collaborations All Industry
Two firms, Intel and Microsoft, each invested more than $10 billion in R&d in 2012 and both expect to exceed $10 billion in 2013.
cloud computing and technologies built on it will remain a major R&d thrust for the foreseeable future. Trends and Forecast The ICT industry provides hardware,
software and services that make up the modern information age, spanning semiconductors, telecommunications, productivity or security software, computers, tablets and gaming.
Across all these applications the integration of smaller, faster, mobile, and more powerful electronics with the increasingly pervasive Internet continues to drive innovation in networking and information technologies across all industries.
To keep pace with the demand for increased device performance, chip makers continue to invest in technology
and manufacturing capabilities that improve functionality, size and power consumption. Other device and software manufacturers are addressing the functional size of their applications as devices get smaller, lighter, thinner,
and memory to hold operating systems becomes faster and cheaper. The concept of wireless is no longer a feature
but a requirement in the Internet of things for both distinct ICT devices and their embedded counterparts in diverse areas such as automobiles, logistics, smart grids/utilities and homes. 2014 GLOBAL R&d
FUNDING FORECAST The U s. continues to be the dominant R&d force in the ICT industry
and will account for 57%of the global industry's R&d in 2014. It should be noted,
As Internet functionality continues to evolve these domains, a redefinition of ICT may be needed. Such a change could alter the perception of U s. strength.
Two-thirds of ICT respondents cite cloud computing as the key technology development area for 2014-2016,
Contrast this with results from our 2012 forecast where cloud computing was just emerging and not seen as a key development area by 2014.
Core technologies however, are part of the constant development process of the ICT industry. Continued development of wireless technologies was cited by nearly half (49%)of the respondents, cybersecurity capabilities (46),
Battelle/R&d Magazine survey Sources of Innovation 0%60%80%100%License Technologies from Others In-house Development Industrial Collaborations Computer-based Virtual
Design/Development Academic Collaborations ICT sector All Industry Respondents 20%40%The U s. leadership in ICT R&d remains strong, with both Intel and Microsoft
and Google's and Intel's R&d investments growing by 40%and 27%,respectively, in each of the last two years.
%and Intel reaching 19%.%Corporate leaders in ICT R&d investment Nokia Ericsson Canon Huawei Alcatel Lucent Microsoft Intel Cisco IBM Google-10%0%10%20
%30%40%5%10%15%20%25%R&d AAGR 2010-2012 2012 Corporate R&d Intensity Top 5 Non-u.
Battelle/R&d Magazine survey Sources of Innovation License Technologies from Others In-house Development Industrial Collaborations Computer-based Virtual Design/Development Academic Collaborations
Battelle/R&d Magazine survey Sources of Innovation License Technologies from Others In-house Development Industrial Collaborations Computer-based Virtual Design/Development Academic Collaborations
REFERENCES AND METHODOLOGY ENDNOTES RESOURCES 1 During 2013 the release of new data from NSF modified the historical data for industry
but rather computers, laboratory instrumentation, scientists, and engineers. This conservative analysis is based on the application of certain economic impact multipliers to the 2014 forecast total R&d spending figure of $464. 5 billion.
www. technopolis-group. com 30 september 2014 Regional Innovation Monitor Plus Regional Innovation Report West Transdanubia To the European commission Enterprise and Industry Directorate-General Directorate
B Sustainable Growth and EU 2020 Regional Innovation Monitor Plus Regional Innovation Report West Transdanubia technopolis group in cooperation with Andrea Szalavetz, independent expert
Regional Innovation Monitor Plus i Table of contents 1. Main Trends and Challenges in the Regional Innovation System 4 1. 1 Recent Trends in Economic Performance 4 1
B Stakeholders Consulted 41 Appendix C Statistical Data 42 Table of Figures Figure 1 Economic Performance Indicators...
24 Regional Innovation Monitor Plus 1 PREFACE Launched in 2010, the Regional Innovation Monitor1 continues to be one of the flagship initiatives of DG Enterprise and Industry of the European commission.
with a view to preparing the Annual EU Regional Innovation Monitor Plus report. European commission official responsible for the project is Alberto Licciardello (Alberto.
http://ec. europa. eu/enterprise/policies/innovation/policy/regionalinnovation/monitor/region/select Copyright of the document belongs to the European commission.
may appear. 1 http://ec. europa. eu/enterprise/policies/innovation/policy/regional-innovation/monitor/2 Regional Innovation Monitor Plus Executive Summary 1. Main Trends
Regional Innovation Monitor Plus 3 At the same time regional innovation strategy development has remained an example of textbook-type decentralisation:
and more and more demand side policy instruments are included in RIS3. 4 Regional Innovation Monitor Plus 1. Main Trends
and the EU average. 2 The source of all data in this section is the Hungarian Central Statistical Office,
Regional Innovation Monitor Plus 5 The key driver of growth in the region is oriented the export production of foreign subsidiaries.
ve to EU 6 Regional Innovation Monitor Plus 1. 2 Recent Trends in Regional Innovation Performance Among the Hungarian convergence regions, West Transdanubia features the most spectacular development
expensive research 5 The source of all data in this section is the Hungarian Central Statistical Office,
Regional Innovation Monitor Plus 7 instruments have been purchased to serve local companies'research and testing necessities
8 Regional Innovation Monitor Plus Figure 2 Innovation Performance Indicators Source: Eurostat. 0 50 100 150 200 250 300 350 400 450 Turnover of innova:
on core RTDI (per mln pop) Structural funds on business innova: ons (per mln pop) Total R&d personnel(%)Employment in knowledge--intensive services(%)Empl. in medium--high/high-tech manufacturing(%)EPO patent applica:
ve to EU Regional Innovation Monitor Plus 9 Figure 3 R&d Expenditure per Sector of Performance 0. 00%0. 20%0. 40%0. 60
10 Regional Innovation Monitor Plus Source: Eurostat. Figure 4 Share of R&d Expenditure per Sector of Performance Source:
on R&d Regional Innovation Monitor Plus 11 Figure 5 GERD and GDP Trends Source: Eurostat.
-Dunántúl HU22 HU EU27 12 Regional Innovation Monitor Plus Figure 6 Technological & Non-technological Innovators Source:
so in the 2014-2020 programming period, is to eliminate the phenomenon, referred to as West Transdanubia's innovation paradox.
HU EU27 SMES innovation data-regional estimates 2010 Technological innovators(%of SMES) Non--technological innovators(%of SMES) Innova:
ons new to the market(%)Regional Innovation Monitor Plus 13 priorities are related set and policy measures drafted:
but also reinforce the regional market for technology. 14 Regional Innovation Monitor Plus 2. Innovation Policy Governance In the wake of EU accession,
In the 2014 2020 programming period, counties and urban counties (i e. 23 towns with county rights) will become important actors of the territorial development system.
this latter organisation prepares guidelines for county officials to facilitate their planning and programming exercises,
and Settlement Development Operational Programme (TSDOP) will be allocated in a decentralised manner at county-level in the coming programming period.
county-level municipalities neither possess any experts (huge capacity gap) nor have any experience in such a planning-programming exercise.
Regional Innovation Monitor Plus 15 (over the coming programming period) to be allocated in a decentralised way for the financing of their own programmes.
which were very difficult to administer and monitor. Therefore, RIAS'role was restricted to determining the range of strategic sectors that would receive targeted support in the framework of the regionally decentralised programmes.
whereas OP-support constitutes hardly bearable administrative burden for beneficiaries. 16 Regional Innovation Monitor Plus Economy Programme;
Regional Innovation Monitor Plus 17 These institutional changes coupled with the firing of experts, dispersion and redistribution of authorities and responsibilities have slowed necessarily down the absorption of EU Structural Funds.
The average of 57%has increased significantly over the programming period. Although no data are available about the share of Structural Funds in GBAORD in the 2011-2013 period, the official statement that 95%(!
%of total publicly financed investment is financed from EU resources (http://ec. europa. eu/budget/mycountry/HU/index en. cfm) justifies much higher estimated figures with respect to GBAORD
as well. 18 Regional Innovation Monitor Plus Table 1 Innovation Policy Governance Description Comment Degree of general regional autonomy From low to none at NUTS2 level
In the 2014 2020 programming period each county will be allocated development funding of HUF 25b, €83m to finance selected development projects incorporated in county-level operational programmes In the 2014-2020 programming period development related funding within the (Territorial
and Settlement Development OP) will be subject to partial decentralisation. The share of this OP is 16.15%of total funding available,
and broken network linkages Regional Innovation Monitor Plus 19 3. Innovation Policy Instruments and Orientations 3. 1 The Regional Innovation Policy Mix Compared to the 2000s,
or industry-university-specific collaborative innovation, support 20 Regional Innovation Monitor Plus to the development of incubation and innovation management services,
Regional Innovation Monitor Plus 21 foreign-owned companies (up till 2014 with more than 40 companies12.
natural sciences and information technology'(number of regional beneficiaries: 3). Several other innovation-specific support measures were incorporated in the Enterprise Development Programme of the New Széchenyi Plan.
Opten Ltd. http://www. opten. hu/1758-2013-x-24-korm-hatarozat-j238613. html 17 Data for the number of beneficiaries and the volume of the allocated support
which cannot be considered as a real innovation even in the broadest sense of the term. 22 Regional Innovation Monitor Plus Development Programme addressed other phases in the innovation cycle:
to companies'investment in integrated enterprise information systems and in e-commerce (the number of regional beneficiaries was 147),
'‘Support to companies'investment in integrated enterprise information systems',‘Support to cluster-based collaboration';‘'‘Support to the creation of start-ups and spinoffs'.
GINOP contains all the innovation related priorities elaborated for the 2014 2020 programming period. The draft Partnership Agreement analyses the alignment between national development priorities
and EU-level thematic objectives and suggests that the above-detailed policy priorities of the regional documents (that had interiorised EU thematic objectives) will all be addressed by national policy Regional Innovation Monitor Plus 23 measures.
or diminish environmental harm are planned also to be supported in the coming programming period. 24 Regional Innovation Monitor Plus Table 2 Existing Regional Innovation Support Measures Title Duration Policy
. Direct funding to business R&d and innovation €583k National Development Agency http://ec. europa. eu/enterprise/policies/innovation/policy/regionalinnovation/monitor/supportmeasure
non-R&d innovation € 20m National Development Agency http://ec. europa. eu/enterprise/policies/innovation/policy/regionalinnovation/monitor/supportmeasure/support-market-oriented
process and other non-R&d innovation n. a. National Development Agency http://ec. europa. eu/enterprise/policies/innovation/policy/regionalinnovation/monitor
/regionalinnovation/monitor/supportmeasure/support-complextechnological-innovation-enterprisesaics Dental Innovation 2012-2013 4. 1. Direct funding to business R&d and innovation €4m National
Development Agency http://ec. europa. eu/enterprise/policies/innovation/policy/regionalinnovation/monitor/supportmeasure/dental-innovation-innovationdentist-services Regional Innovation Monitor
. eu/enterprise/policies/innovation/policy/regionalinnovation/monitor/supportmeasure/support-research-futureoriented-ict-technologies-and-ensuringsupply-it-experts Source:
Budgetary allocations can exceed this period. 26 Regional Innovation Monitor Plus 3. 2 Regional Policies and Initiatives in Support of Advanced Manufacturing WT,
Others established local production facilities to benefit from the gradually emerging clustering tendencies and from the availability of skilled workforce.
These new motivations have prompted several investors to increase their local commitment and upgrade their existing facilities.
Projects are carried out at the partners'sites. Companies can thereby get an impression about students'abilities
Regional Innovation Monitor Plus 27 Regional higher education institutions are important actors from the point of view of AM.
County-level strategies have detailed these broad objectives by listing specific projects to be submitted for support from Operational Programmes in the 2014-2020 programming period.
neither did they indicate any of the region's 28 Regional Innovation Monitor Plus key industries as specific priorities
Regional Innovation Monitor Plus 29 Integration of policy objectives was accomplished however by the beneficiaries who submitted applications to a number of calls, each
and Rába, Magna Steyer, Nokia, Nemak and Philips). Examined however from the point of view of good policy practice this case is not relevant,
members'capacity development and the development of automotive industry related education. 22 Centrope tt established a voucher scheme to facilitate SMES'access to R&d services. 30 Regional Innovation Monitor
However, measures that promoted clustering and the improvement of clusters'services portfolio, were announced last in 2012 in WT.
Regional Innovation Monitor Plus 31 8. The dominance of supply-oriented measures at the expense of demand-and commercialisation-oriented ones;
Seabright, 1996.32 Regional Innovation Monitor Plus equipment) was regulated not, sustainability was taken not into account (universities had no funding to employ a person who operates the research equipment
Sooner or later new investments were necessary with respect to the newly purchased equipment (upgrading of the related software, maintenance,
Publicly Regional Innovation Monitor Plus 33 available data about the applicant companies should be checked, including the number of their employees and the volume of applicants'net sales.
The report recommended that future cluster policies should focus on established successful and innovative clusters (in particular, on members'joint investment projects and 34 Regional Innovation Monitor Plus on other collaborative projects
trainings for cluster managers) should also receive support in the next programming period. The evaluation of the Hungarian accredited innovation clusters should be harmonised with the evaluation systems of the European Cluster Observatory. 3. 4 Good Practice Case This section will analyse two cases of policy practice.
Regional Innovation Monitor Plus 35 Complementary to tangible investment in new technology, another measure(‘Support to companies'complex technological innovation'within the Science and Innovation Programme) supported
Searches have been conducted at the website of the New Széchenyi Plan to check, whether the company in question had been beneficiary of other supported actions as well.
%Analysis of additional documents (newspaper articles, cluster documents, documents of industry university collaboration, the company's website, etc.
and linkages building with potential business partners. 36 Regional Innovation Monitor Plus 3. 5 Possible Future Orientations
Past policy instruments including clustering; supplier development (support to indigenous companies'investment in new technology to make them capable to become multinational subsidiaries'suppliers)
Although the region was among the first ones where bottom-up clustering tendencies were identified by regional economics researchers,
policy-makers consider it important to enhance regional clustering tendencies (intensify collaboration among stakeholders) and facilitate existing clusters'accreditation process.
New ones are related to green industry and sustainability, health industry, physics and big data analysis. As for the sectoral opportunities,
Regional Innovation Monitor Plus 37 At the same time new sectoral orientations were mentioned also: Within the automotive sector:
the development of electric vehicles and the related infrastructure is bound to benefit from increased policy support in the 2014 2020 programming period.
and the activity it has carried out in the framework of SEE IDWOOD programme (Clustering, knowledge, innovation and design in SEE wood sector).
2012 38 Regional Innovation Monitor Plus by dedicated resources: documents include more innovative demand-side instruments such as awareness increase (for creative industries, design, green solutions etc.;
On the other hand, regional aid intensity will radically diminish in the new programming period. Over the 2007 2013 programming period, EU Structural Funds provided nonnegligible incentives that effectively stimulated the implementation of some relatively disadvantaged stakeholders'(small, undercapitalised enterprises')innovative ideas.
These incentives will vanish for the majority of innovative stakeholders. Only relatively large and well-capitalised actors will be able to apply for support of their innovative ideas
Regional Innovation Monitor Plus 39 Appendix A Bibliography 1. Angster, T, . & Bujdosó, I.,& Madar, E,
http://www. future-mobility. eu/downloads/index. htm 2. Bruszt, L. 2008) Multilevel governance the Eastern versions:
http://klaszterfejlesztes. hu/content. php? cid=cont 51d4102c8c68e4. 02287351 9. Izsák, K.,Markianiodi, P, . & Radosevic, S. 2013).
http://www. ddrmk. hu/index. php? cx=001311444309957831091%3ahfoxm8muioi&cof=FORID%3a9&id=105&parent=2&ie=ISO-8859-2&q=kardos+k%E1roly&sa=11.
palyazat. gov. hu/download/49490/Értékelési évkönyv 2013. pdf 14. Nemzetgazdasági Minisztérium (2013) S3 Fehér Könyv. Magyarország Intelligens Szakosodási Irányai.
www. kormany. hu (not available any more) 40 Regional Innovation Monitor Plus 15. Nyugat-Dunántúl (2014) West Transdanubia:
http://ec. europa. eu/enterprise/policies/innovation/policy/regionalinnovation/monitor/policy-document/ris-navigator-regional-innovation-strategy-westtransdanubian-region 21.
Stratégiai megállapodás a 2014 2020 közötti uniós finanszírozású fejlesztési programok megyéket érinto fejlesztéseirol) In Hungarian, Available at the website of each county (e g. http://www. jnszm
palyazat. gov. hu/download/50102/TOP ELOADÁS TIPOLD FERENC 1122. ppt 26. Universitas Gyor Nonprofit Kft. 2014) Gyor-Moson-Sopron Megyei Területfejlesztési Program.
www. bruegel. org Regional Innovation Monitor Plus 41 28. Zala Megyei Közgyulés (2013) Zala megye területfejlesztési koncepciója.
01.07.2014). 42 Regional Innovation Monitor Plus Appendix C Statistical Data HU22 Nyugat-Dunántúl Country EU27 Year Source Performance relative to Performance
62 0, 60 0, 54 2010 MERIT-ESS 115,2 103,1 Regional Innovation Monitor Plus 43 HU22 Nyugat-Dunántúl Country EU27 Year
6 100,7 Structural funds on core RTDI (Euros per mln population) 155,58 155,83 63,01 2007-2013 Eurostat 246,9 99,8 Change in Employment in medium
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