Hungarian Innovation Policy and the Role of Technology Foresight Dr. Tamás Balogh Ministry of Economy and Transport, Hungary Innovation and R&D Department Wien, 28.02.2007. 1 But: Albert SzentGyörgyi was the only Hungarian born Nobel Prize Laurate scientist obtaining the Scientific heritage Prize in Hungary. 2 GERD/GDP, % 1,20 1,00 0,80 1,08 1,00 0,94 0,93 0,75 0,67 0,74 0,70 0,68 1,01 0,82 0,95 0,89 0,95 0,60 0,40 0,20 0,00 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Gross R&D expenditures per GDP are still in the lower third of the EU, … 3 …but the trend is improving. Innovation is a top priority of the government. 4 Business enterprises should be more active in R&D … 5 … and the government promotes that by generous tax benefits. Plus a variety of R&D programmes. 6 Tax measures for R&D and IPR • intramural and outsourced R&D: 200% (tax base). • IPR costs (SMEs only): 200% (tax base). • R&D expenditures at university campus or Academia, 400% (tax base), maximum 50 M HUF. • Investment tax release from 100 M HUF (R&D only). • Students in R&D: tax free up to minimum wage. • 150-170% tax base reduction for R&D donations. • Small and micro enterprises do not pay in Fund. 7 Strong foreign presence in corporate R&D activities. World class knowledge base in some fields (IT, maths, physics, life sciences, chemistry, etc.). 8 Bosch Power Tool CORPORATE Audi RESEARCH Magna Steyr General Electric Philips CENTRES AFT ZF Hungária W.E.T. Samsung Nokia Draixlmaier Samsung Philips GM-Opel General Electric Flextronics Continental Teves Valeo Auto-Electric Denso Visteon Philips Electrolux Samsung Zeuna Starker Knorr-Bremse Zenon Elcoteq Source:ITDH Michelin Flextronics Ericsson Continental Temic IBM Sysdata General Electric Nokia Cisco SAP TATA Consulting 9 Sanofi-Aventis Consequently, high-tech manufacturing industries play very important role in the economy… 10 … boosting Hungary’s high-tech manufacturing exports. 11 Five priorities of the new Government RDI strategy (2007-2013) – February 2007. 1. 2. 3. 4. 5. Culture of implementation and utilisation of research results. Quality- output- and utilisation-driven, effective National Innovation System. Well paid, creative and innovative workforce responding to the demands of knowledge driven economy and society. Economic and legal environment that is conducive to creation and utilisation of knowledge. Companies, products and services that are competitive at the global market. 12 Action plan based on the RDI strategy (20072010) – May 2007. • • • Programmes based on the five priorities will be put in a coherent system. Proposals for new legislation to achieve a legal environment that is conducive to creation and utilisation of knowledge. The process shall be kept within the frames of a hard convergence programme for macroeconomic stability. 13 The innovation value chain… Market success, growth Market entry, mass production Experimental dev’ment, IPR Applied research Supporting stock market entry New idea, basic research Market conform enterprise financing tools (credit, capital, guarantee) National R&D and Innovation programme (GVOP/GOP and KTIA) University and MTA basic financing OTKA 14 … and the applied government tools RDI policy is supported by different types of strategic intelligence: • • • • Analysis of national data and trends (CSO) Analysis of studies and legal documents, International benchmarking (UN, OECD, EU) Technology foresight studies (national and international, EU and UNIDO), • Direct contact with institutions and companies. 15 Hungary has a record in TF activities - 1 First TF exercise in the region (TEP, 1997-2000) 1st TF Summit in Budapest (2003) ForeTech – twinning for RO+ BG, with CZ 2002-2003 Practical Guide for Regional Foresight (EU FOREN) – translation and distribution 2002-2003 BLUEPRINTS programmes – DG Research – Foresight and the transition of regional knowledge based economies (FOR-RIS, UPGRADE, TECH-TRANS, TRANSVISION, agriblue) 2002-2003 16 Hungary has a record in TF activities - 2 eForesee – MT, LT, LV, EE – co-operation (2002-2003) IPTS – FOR-LEARN project – TF culture enhancement for CEE countries, Steering Committee (2005-) ForSociety ERA-NET project, 15 countries, societal aspects of technology development, 2004-2007 UNIDO Training Programme – regional initiative of TF for CEE and NIS (2006-2007) UNIDO Regional Virtual Centre for TF (2006-) 2nd TF Summit in Budapest - 2007 September 17 Next: 2nd Foresight Summit, September 2007 • Organiser: UNIDO • Possible chair: President of the Republic • Government partners: Min. of Economy and Transport, Min. of Environment and Water • Foresight partner: TEP Office, Budapest • Technical partner: local company. 18 Thank you for your kind attention, see you in Budapest! tamas.balogh@gkm.gov.hu