1. 1 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.

2. 2 Scientific heritage But: Albert Szent- Györgyi was the only Hungarian born Nobel Prize Laurate scientist obtaining the Prize in Hungary.

3. 3 Gross R&D expenditures per GDP are still in the lower third of the EU, …

4. 4 …but the trend is improving. Innovation is a top priority of the government.

5. 5 Business enterprises should be more active in R&D …

6. 6 … and the government promotes that by generous tax benefits. Plus a variety of R&D programmes.

7. 7 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. Tax measures for R&D and IPR

8. 8 Strong foreign presence in corporate R&D activities. World class knowledge base in some fields (IT, maths, physics, life sciences, chemistry, etc.).

9. 9 Zenon Elcoteq Ericsson Continental Temic IBM Sysdata General Electric Nokia Cisco SAP TATA Consulting Sanofi-Aventis Bosch Power Tool Continental Teves Valeo Auto-Electric Audi Magna Steyr General Electric Philips GM-Opel Michelin Flextronics Denso Visteon Philips Knorr-Bremse Zeuna Starker ZF Hungária W.E.T. General Electric Flextronics Samsung Nokia Philips Draixlmaier Electrolux AFT Source:ITDH CORPORATE RESEARCH CENTRES

10. 10 Consequently, high-tech manufacturing industries play very important role in the economy…

11. 11 … boosting Hungary’s high-tech manufacturing exports.

12. 12 Five priorities of the new Government RDI strategy (2007-2013) – February 2007. 1.Culture of implementation and utilisation of research results. 2.Quality- output- and utilisation-driven, effective National Innovation System. 3.Well paid, creative and innovative workforce responding to the demands of knowledge driven economy and society. 4.Economic and legal environment that is conducive to creation and utilisation of knowledge. 5.Companies, products and services that are competitive at the global market.

13. 13 Action plan based on the RDI strategy (2007- 2010) – 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.

14. 14 New idea, basic research Experimental dev’ment, IPR Applied research Market entry, mass production Market success, growth The innovation value chain… … and the applied government tools University and MTA basic financing OTKA National R&D and Innovation programme (GVOP/GOP and KTIA) Market conform enterprise financing tools (credit, capital, guarantee) Supporting stock market entry Innovation and R&D conducive legal environment

15. 15 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.

16. 16 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

17. 17 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

18. 18 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.

19. Thank you for your kind attention, see you in Budapest! tamas.balogh@gkm.gov.hu