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Dr. István STUMPF Minister Prime Minister’s Office

Hungary: on the way of building Knowledge Economy. Dr. István STUMPF Minister Prime Minister’s Office. Outline:. Overall challenges Hungary is facing Building modern economy, toward KE Government programs for KE Economic-institutional regime R&D and skilled professionals

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Dr. István STUMPF Minister Prime Minister’s Office

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  1. Hungary: on the way of building Knowledge Economy Dr. István STUMPF Minister Prime Minister’s Office

  2. Outline: • Overall challenges Hungary is facing • Building modern economy, toward KE • Government programs for KE • Economic-institutional regime • R&D and skilled professionals • On information infrastructure • Problems, obstacles, more efforts needed • Tackling these problems WB-conference on KE

  3. Motto: Have you plans for one year: do farming; plans for a decade: plant trees; plans for a century: educate your people. Ancient Chinese proverb WB-conference on KE

  4. Creating competitive economy on global market - Globalisation European accession/integration Building and operating Knowledge Economy, Knowledge Society Triple challenge: short-term - “farming”: Hungary as part of present global marketmidterm - “tree-plant”:restructuring economy long-term- laying foundations for real Knowledge Economy Overall challenges Hungary is facing WB-conference on KE

  5. Building modern economy • Economy structure, competitiveness - impact of few-decades of historical lagging back, good education system, skilled professionals • 1990-2000: successful privatisation, economy restructuring, attracting foreign investors • Modern telecommunication services, fast developing IT and software industry, high-tech products, R&D activities WB-conference on KE

  6. Developing Knowledge Economy • Foundation has been laid down: • private market players, competitive market • infrastructure and ICT services, IT industry • skilled professionals • developed education and R&D system/network • Problematic areas: • low Internet penetration • digital divide, regional differences • SME-s lagging back • lot to do to change the way of thinking WB-conference on KE

  7. Governmental programs toward Knowledge Economy • Economic Development program 2001-2006 the Széchenyi Plan with: Information Society chapter, and SME development chapter • National Information Society Strategy (NITS)with lot of application funds • eEurope+ action plan • R&D funds (IKTA: as part of FW 5) WB-conference on KE

  8. Economic-institutional regime • Competitive market • Legislation: liberalised environment, encouraging self-regulation • Competition authorities • Development strategies • Result: attractive for high-tech and R&D • ICT is one of the sectorsthat acts as engine for building KE • ICT sector is liberalisedwith harmonised legislation • IT is the transformation technology to build KE,but it is not yet KE WB-conference on KE

  9. The share of ICT sector Source: Financial Times, 29. Oct. 2001, evaluation on the base of 10 OECD data categories. Source: OECD STI Scoreboard, 2001 WB-conference on KE

  10. R&D and skilled professionals • University and secondary education traditionally excellent • R&D expenditure low but increasing • More and more multinationals with R&D centres in Hungary Source: Hungarian Statistical Bureau, 2000 WB-conference on KE

  11. The share of IT industry Source: OECD STI Scoreboard, 2001 WB-conference on KE

  12. Information infrastructure • National Information Infrastructure Development program from 1986 • Provides services for universities, R&D institutes, public access points, etc. • Part of the GEANT network, with high bandwidth, offering EU-level services • e-Governmental services launched (via portal) since 2001 WB-conference on KE

  13. Problems, obstacles, more efforts are needed • Not enough Internet penetration (20%) • Most Internet users from universities, work places, few households (8%) • Not active use of Internet by SMEs • Regional differences are very high (more advanced in capital, large cities, western regions) Source: TÁRKI-WIP, Sept. 2001 WB-conference on KE

  14. Plans to tackle these problems • Well defined and oriented funding programs: for communities with needs (handicapped) • Global educational programs (Sulinet, for teachers, for soldiers, public programs) • Economy development aiming at SME-s • Programs for regions lagging back • Encouraging international co-operation WB-conference on KE

  15. Final message: Not the microchip, neither global info-communications network form the new economy, it is realised by the human intellect. I am convinced the efforts of this conference, all the participants strongly contribute to the task of building Knowledge Economy. Thank you. WB-conference on KE

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