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Changes in the Hungarian National Innovation System (NIS)

Changes in the Hungarian National Innovation System (NIS). Adam Tichy-Racs atichy-racs@omikk.bme.hu National Technical Information Centre and Library at the Budapest university of Technology and Economics (BME OMIKK). Events in Hungarian NIS. Act on Innovation (2004)

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Changes in the Hungarian National Innovation System (NIS)

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  1. Changes in the Hungarian National Innovation System (NIS) Adam Tichy-Racsatichy-racs@omikk.bme.huNational Technical Information Centre and Libraryat the Budapest university of Technology and Economics(BME OMIKK)

  2. Events in HungarianNIS • Act on Innovation (2004) • Innovation Fund – special tax + matching fund • Establishing National Office for Research and Development (NKTH) under the supervision of Ministry of Education • Parliamentary elections (2006) • Change in governmental structure • NKTH is supervised by the Ministry of Economy • 2nd amendment to Coalition Agreement (2007) • Proposal on integration of „small taxes” • Government Decision No. 1060/2007 on tasks regarding the innovation infrastructure – „Establishing innovation observatory” • State Auditing Committee report on Fund of Innovation (2008) • There are too many changes in NIS • Break-up of governing coalition (2008) • Government without majority support in Parliament • Minister of Research and Technology appointed • World economic crisis (2008-) • Change of Government (2009) • Minister of Research and Technology resigned

  3. Good News • The European Institute of Innovation and Technology has been established • EU organization • Centre in Budapest, Hungary

  4. Major events since May 2008 • At the 2008 seminar and the 59th sitting of CPR there was a presentation on the subject, emphasizing the negative effects of the frequent organizational changes in governing R&D policy • During his visit in November 2008 in Hungary Dr Victor Kodola, director of ICSTI met • Dr Gyula Csopaki, president of the National Office for Research and Technology Development (appointed into the position in August 2008) • Ildikó Kovács, head of Department of International Cooperation of NKTH • Dr József Pálinkás, president of the Hungarian Academy of Sciences • Dr. Károly Molnár, minister of research and technology (appointed into his newly established position on 1st May, 2008) • Among other topics that were discussed, they agreed in inviting the 61st Sitting of CPR in Hungary

  5. Economic and structural changes since November • The first effects of the world economic crisis began in October, we could already make an estimation of it in December and it has became reality by now • Hungary needed a substantial loan from IMF in November in order to handle the national debt service • The decline of industrial production is about 20 percent • The automotive and the computer industry closed down most of the Hungarian factories or introduced a four workday in a week system • Most of construction works have been suspended • The expected decrease of GDP from 2008 to 2009 is about 6 percent • The unemployment went up to 11-12 percent • The exchange rate of EUR 1 • HUF 247 in October 2008 • HUF 317 in March 2009 • HUF 287 in May 2009 • After a short term slight decrease of prices higher inflation rate is forecast by analysts

  6. The effects of the changes regarding to ICSTI • The situation swept away the government in April, including the minister of R&D – and his office closed down after ten months • The new government does not have majority inthe Parliament, but needs voting majority for its legislative actions to stabilize the situation • Regular parliamentary elections will be in May 2010, but there can be elections before that time • Major victory of FIDESZ - in opposition since 2002 - is expected • A new nationalist party may win some parliamentary seats • The political strength of parties will be testes on the elections for European Parliament in two weeks

  7. The effects of the changes regarding to ICSTI • The supervisor of NKTH is the Ministry of National Development and Economics (new position, new person) • The incomes of the Fund for Research and Technological Innovation decreases with the decline of the industrial production • that fund provides financial resources for scientific cooperation • In this situation NKTH, which is responsible for the ICSTI relations • does not take the responsibility of inviting the 61st CPR Sitting to Hungary in 2010 • but will pay membership fees of Hungary and contributes to our participation at major ICSTI events • BME OMIKK alone cannot organizenext yearsICSTI Conference and the 61st CPR sitting on its own budget

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