Erawatch Country Report 2009: Hungary

Havas, Attila (2009): Erawatch Country Report 2009: Hungary. Published in: JRC Scientific and Technical Reports No. JRC 53701 (2009): pp. 1-49.

Abstract

Macroeconomic imbalances have been particularly pressing since 2006 in Hungary. The global economic and financial crisis has further aggravated the prospects for recovery, and access to capital has become even more difficult. Although overall conditions for doing business have improved in recent years, administrative and tax burdens on firms are still high compared to the OECD average. The regulatory environment is characterised by frequent and unpredictable changes. These conditions are not favourable for long-term and high-risk activities, such as RTDI. Only one fifth of firms operating in Hungary are innovative. The majority of companies (59%) do not innovate due to the lack of demand for new products and services. Researchers at universities and PROs are not sufficiently motivated to carry out economically relevant research. This, in turn, hinders exploitability of knowledge, and therefore may not provide sufficient incentives for private co-financing of research performed in the public sector. It seems unlikely that R&D investment targets, especially those of the private sector can be achieved simply by providing more public funding. The impact of strictly defined STI policies with the aim of leveraging R&D investments can only be enhanced if framework conditions for RTDI activities are also significantly improved. Given the economic crisis and lack of meaningful communication – let alone co-operation – among the major political parties, it is uncertain if fundamental reforms, needed to create more favourable conditions, can be implemented. Structural reasons, that are difficult to address even by overall economic policies, let alone STI policies, can also be seen as obstacles to induce R&D investments. The large chunk of BERD (around 70%) is performed by foreign-owned firms, and their RTDI activities are largely determined by their parents’ strategies, while domestic STI policies can only play a relatively minor role.

• Item Type: MPRA Paper
• Language: English
• Keywords: Hungary, innovation performance, framework conditions for RTDI activities, STI policies
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O38 - Government Policy; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O52 - Europe

References

Bologna Report (2009): Bologna Process Template for National Reports 2007-2009, Hungary. Ministry of Education and Culture. Available on-line at: http://www.okm.gov.hu/doc/upload/200901/sd_national_report_hungary_090105.pdf

CECWYS (2006): Hungarian National Report, prepared for the Central European Centre for Women and Youth in Science, EU Framework 6, Project No. SAS6-CT-2004-003582 Work Package 8, Budapest: Hungarian Science and Technology Foundation

Csanády, M.T. et al. (2008): ‘A magyar képzett migráció a rendszerváltás óta’ (‘Migration of Hungarian qualified workforce since the transition’), Magyar Tudomány, 2008/5

EC (2007): Remuneration of Researchers in the Public and Private sectors, available on-line at: http://www.cipur.it/Varie/Forum%20DDL112/Study%20remuneration%20researchers.pdf

EIS (2008): European Innovation Scoreboard 2008 – Comparative Analysis of Innovation Performance. UNU-MERIT, available on-line at: http://www.proinno-europe.eu/index.cfm?fuseaction=page.display&topicID=5&parentID=51

Felvi (2007): Doktoráltak és a munkaerőpiac (Doctoral degree holders on the labour market) Results of a survey by the National Association of Doctoral Students and the Universitas Press Higher Education Research Workshop, available on-line at: http://www.felvi.hu/index.ofi?mfa_id=414&hir_id=7746&oldal=6

Government (2007): The Government’s mid-term (2007-2013) science, technology and innovation policy strategy, available on-line at: http://www.nkth.gov.hu/hivatal/tti-strategia/kormany-tudomany-080519

Havas A. (2009): ERAWATCH Country Report 2008, An assessment of research system and policies: Hungary, Joint Research Centre and DG Research. http://cordis.europa.eu/erawatch/index.cfm?fuseaction=home.downloadFile&fileID=891

Havas, A. and Nyiri, L. (eds) (2008): National System of Innovation in Hungary, Background Report for the OECD country review 2007/2008, available on-line at: http://www.nkth.gov.hu/oecd-innovacios

KSH (2008): Kutatás és fejlesztés 2007 (Research and development 2007), Hungarian Central Statistical Office, Budapest

MISz (2008): A Magyar Innovációs Szövetség véleménye „Az Európai Unió lisszaboni stratégiájához készült NEMZETI AKCIÓPROGRAM A NÖVEKEDÉSÉRT ÉS FOGLALKOZTATÁSÉRT, 2008-2010 című anyagról (2008. augusztus) (The opinion of the Hungarian Association of Innovation on the “National Action Programme for Growth and Employment”, prepared for the European Union’s Lisbon Strategy), available on-line at: http://www.innovacio.hu/2a_hu_2008_09_15.php

NKTH (2007): Nemzeti Kutatási és Technológiai Hivatal – Intézményi Stratégia 2007-2010 (National Office for Research and Technology – Institutional Strategy 2007-2010), December 2007, (Available at: http://www.nkth.gov.hu/hivatal/hivatal-strategiaja/intezmenyi-strategia)

NKTH (2008): Kutatási és Technológiai Innovációs Alap felhasználása és a Nemzeti Kutatási és Technológiai Hivatal tevékenysége, 2006. évi beszámoló (Report on the Use of the Research and Technological Innovation Fund and the Activities of the NKTH, Annual Report for 2006), available on-line at: http://www.nkth.gov.hu/hivatal/beszamolok/nkth-2006-evi

NRP (2008): Nemzeti akcióprogram a növekedésért és a foglalkoztatásért 2008-2010 (National Action Programme for Growth and Employment 2008-2010), prepared for the EU’s Lisbon Strategy by the National Development Agency, available on-line at: www.nfu.hu/download/13631/NFU_kiadvany_nezokep.pdf

OECD (2007): OECD Science, Technology and Industry Scoreboard, 2007 edition, Paris: OECD

OECD (2008a): Reviews of Innovation Policy – Hungary, Paris: OECD

OECD (2008b): Education at a Glance, 2008 edition, Paris: OECD OKM (2008): Education-Statistical Yearbook, Ministry of Education and Culture

Palasik, M. and Papp, E. (2007): Nők a tudományban – Áttekintés Magyarországról (Women in Science – Overview of Hungary). Report commissioned by the Scientific and Technology Foundation within the FP6 project WS DEBATE – Women in Science: Debate-series in Central Europe, available on-line at: http://wsdebate.tetalap.hu/index.php?option=com_content&task=view&id=16&Itemid=30

Tamás, P, Csizmady, A. and Schmidt, A. (2005): Kompetenciák a magyar kutatás-fejlesztésben és a tudományos életpályák 2005-2015 – Hazai előreszámítások és nemzetközi minták (Competences in the Hungarian R&D and scientific carriers 2005-2015, Forecasts and international examples), mimeo, MTA Research Institute of Sociology

TrendChart (2008): Inno-Policy Trendchart – Policy Trends and Appraisal Report, Hungary, available on-line at: http://www.proinno-europe.eu/index.cfm?fuseaction=country.showCountry&topicID=263&parentID=52&ID=20

Veres, E., Krisztics, B. (2006): Monitoring and analysis of policies and public financing instruments conducive to higher levels of R&D investments, The “Policy Mix" Project, Country Review – Hungary, Available at: http://ec.europa.eu/invest-in-research/pdf/download_en/hungary.pdf