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Innovation policy in Hungary in the light of Europa 2020

Innovation policy in Hungary in the light of Europa 2020. László SZILÁGYI Department for Innovation and R&D FIDIBE Final Conference 1 December 2011, Székesfehérvár. Hungary: l ow R&D expenditure. T he GERD was HUF 310 billion Ft in 20 10 , which is 1. 14 % of the GDP

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Innovation policy in Hungary in the light of Europa 2020

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  1. Innovation policy in Hungary in the light of Europa 2020 László SZILÁGYI Department for Innovation and R&D FIDIBE Final Conference1 December 2011, Székesfehérvár

  2. Hungary: low R&D expenditure The GERD was HUF 310 billion Ft in 2010, which is 1.14% of the GDP • Lisbon target: 3 % of GDP • EU average: 2.01% of GDP (2009) Source: Hungarian Statistical Office

  3. The distribution of R&D expenditures by financial sources Source: Hungarian Statistical Office

  4. Knowledge-based investments as a percentage of GDP Ministry for National Economy Source: Intereconomics 2010

  5. The Hungarian situation: lag in human resources,business R&D and IPR protection

  6. Significant regional disparities of R&D activity

  7. Share of foreignaffiliatesin GDP (2000, 2008) Financial intermediation excluded completely or in part for all countries except Austria, the Czech Republic and the United States.Community, social and personal services excluded for Austria, France, Germany, Hungary, Israel, Italy, the Netherlands, Norway, Poland, Portugal, the Slovak Republic, Slovenia and Spain. Source: OECD

  8. Ministry for National Economy R&D units of multinational companies in Hungary

  9. Number of researchers (FTE) inthe business enterprisesector Chemicalindustry (beyondpharma) Machineryproducts and equipmentnec Radio, TV and telecommunicationequipment Medical and precisioninstruments Computer services Architecture, engineering and othertechnicalserv. Other business servicesnec Source: NGM-IKF basedon OECD data

  10. RDI policy context – doublechallenge • Short-term adaptation to the crisis in the policy field vs. the need to define a long-term RDI perspective • The global financial/debt crisis forced the Hungarian government to take steps, which influence RDI policy as well • National RDI strategic priorities should be presented in 2011 / 2012, requred by • EU2020 NRP: GERD / GDP target is set to 1,8% by 2020 • S3 is required by the so-called ex ante conditionality criteria proposed by the Commission for the next period Cohesion policy (Structural Funds)

  11. The Horizon 2020 package The Horizon 2020 package was published on 30 November (http://ec.europa.eu/research/horizon2020/) – to help Hungarian participation is a key task • Proposal for Horizon 2020 / the Framework Programme for Research and Innovation (2014-2020): general objectives, European value added, financial framework, controling/monitoring/evaluation principles; • Proposal for the Specific Programme implementing Horizon 2020: rules for execution and some more specific scientific content; • Proposal for a single set of Rules for Participation and Dissemination in Horizon 2020; • Separate proposal for the part of Horizon 2020 corresponding to the Euratom Treaty

  12. The proposed structure of Horizon 2020

  13. Hungary has a low participation rate in FP7(EUR)

  14. Reasons for the low FP participation rate • Structural gap between old and new member states: 95% of the support went to the EU15 and only 5% to the EU12. Reasons include: • Few coordinators, lacking coordinating capacities and capabilities • Project size, difficulties to join consortia, excellence criteria, poor networking capacities, bureaucratic procedures… • EU12 countries try to harmonise their views now • A „national Horizon 2020 consultation” was launched on 29 November 2011

  15. EU 2020 Strategy The Hungarian National Action Plan The first draft was submitted to the COM November 12,2010 Approving the final version will take place in April, 2011 (during the course of the Hungarian EU Presidency) Hungary intends to increase its R&D expenditure to 1.8% of GDP by 2020while further increasing the share of the business sector in financing R&D activity. Measuresof the NAP: • Renewal of the STI (R&D&I) strategy (in 2011); • Restructuringthegovernancesystem of the NIS; • Revised, singlestateaidsystem. Importantevaluationdocuments: • OECD Reviews of Innovation Policy: Hungary, http://www.nih.gov.hu/english/oecd/oecd • Evaluation of theoperationoftheInnovationFundin 2004-2009, http://www.nih.gov.hu/english/evaluations/comprehensive

  16. Renewal of the current STI strategy Ministry for National Economy Main characteristics: • Timescale between 2011-2020, • Harmonising with the international trends, [Innovation Union, OECD Innovation Strategy], and the best practice of the EU Member States [Austria, the Czech Republic, Finland, Ireland, etc.], • State-of the art innovation approach including the non-technological innovation aspects as well, • Strong focus on the market and exploitation-oriented R&D activities, the innovation performance of the companies.

  17. Strategicnecessities • Economic realities make the government focus RDI policy on business actors, which can stand in the global competition (and on public actors, who can directly serve them) • At the same time, long-term „maintenance” and „renewal” of the knowledge base should not be forgotten either (in cooperation with other ministries – education, development policy etc. - and other stakeholders)

  18. A simplemodel of an RDI system Source: Guy, K and C. Nauwelaers (2003)

  19. Vision „By 2020, with the help of an active RDI policy, key actors of the National Innovation System will be strengthened and become equal participants in global innovation processes, who in turn – as generators of spillover impacts – will be able to provide momentum for the whole NIS, thereby contributing to increasing competitiveness and rendering Hungary a sustainable knowledge economy” (working definition)

  20. Parliament Education, Science and Research Committee Government National Council for Research, Innovation and Science Policy Ministry of Public Administration and Justice Ministry for National Economy Ministry of National Resources Hungarian Academy of Sciences Science coord., IP protection R&D, techn. innov. Science policy, higher education Hungarian IP Office National Innovation Office National Develop- ment Agency Hungarian Scientific Research Fund Governance of the NIS, 2011- Innovation and Development ad hoc Committee Ministry of National Development Single development policy

  21. A renewed RDI support system is coming

  22. Thank You for your kind attention! László Szilágyi Ministry for National Economy Department for Innovation and R&D laszlo.szilagyi@ngm.gov.hu +36-1-374-2700/2152

  23. Összefoglalás • A KFI aréna és a játszma globális, a folyamatok különböző innovációs rendszerekben zajlanak és dinamikusak • A KKV-k szempontjából lényeges egyes rásegítő keretfeltételek érvényesülése pl. a versenyfeltételek, az adminisztrációcsökkentés, a vállalkozóbarát üzleti környezet, a kiszámíthatóság stb. területén • A KFI stratégiát – az erőforrások tükrében – fókuszálni szükséges, és (mások mellett) az innovatív fiatal cégcsoport támogatása mindenképpen javasolt • Kiemelendő az együttműködő társpolitikák (elsősorban az oktatás-, és tudománypolitika, regionális fejlesztés) jelentősége – a korszerű innovációpolitika iránti elvárások egyben nagyfokú koordinációs elvárások is, az innováció jelentőségének elfogadása mellett.

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