Hi-tech in Hungary:potential and performance

Géza Vass, Director GeneralDepartment of Bilateral Economic Relations

Ministry for National Economy, HungaryChina Hi-Tech Fair, Shenzhen, 16-21 Nov 2010

2

HungaryHungary

Land: Land: 93,030 km²93,030 km²Population: 10 millionPopulation: 10 millionGDP/capita, at PPGDP/capita, at PPPP: : EUR 1EUR 14,900/ USD 18,840 (2009)4,900/ USD 18,840 (2009)(wiiw, EIU(wiiw, EIU))

Member of EU since 2004Member of EU since 2004

500 million consumers within 500 million consumers within easy reacheasy reach

500 million consumers within 500 million consumers within easy reacheasy reach

3

The strength of the ICT sector with good e-skills: strategic assets for Hungary

Hungary’s ICT sector represents one fifth of its exports, the third highest in the EU

The percentage of people employed with ICT user skills exceeds the EU average

Major software developers: IBM, HP, Siemens, CISCO, SAP, Oracle, Microsoft and TATA

Several IT companies, such as BT, EDS-HP and Getronics operate technology service centres in Hungary

ICT-related R&D drives more than a quarter of total R&D

Source: Europe’s Digital Competitiveness Report - i2020 – ICT Country Profiles, August 2009

4

Biotechnology & Pharmaceuticals

The 5th largest drug producer in Europe

Hungary ranks top in clinical research

(Buck Consultants)

Hungary’s biotechnology sector on par with some Western European countries (Europabio, 2009)

5

Pécs

Debrecen

Budapest

Large international companies are clustered around universities

Enhance the cooperation between academia and business

Each granted by EUR 6.3 million by the National Research and Technology Office

Long-term programs in basic and applied research

Four life sciences clusters János Szentágothai Centre of Excellence: molecular biology and info-bionics

27 pharma companies engaged in R&D

Genomnanotech Centre of Excellence

Teva-Biogal R&D

Medipolisz Regional Knowledge Centre: pharma research

Biopolis Neurobiological

Knowledge Centre Bay Zoltán

Foundation for Applied Research

Biological Research Centre

Szeged

6

• Original manufacturers: Suzuki, Audi–Suzuki: 181,000 pcs (2009)–Audi Motor: 32,600+ TT coupés and

roadsters, A3 cabriolet • Engine manufacturing:

– Audi Hungary: 1.38 million engines(2009)– GM Opel: 400 thousand engines (2008)

• Automotive electronics prod. + R&D: Bosch, ThyssenKrupp, Knorr Bremse, etc.

• TIER 1s: 14 of the world’s top 20 are present in Hungary

Automotive

World’s 2nd largest powertrain plant in Hungary by Audi!

7

• Largest electronics producer and exporter in the CEE

• Major global manufacturers: Samsung, GE, Philips, Sanyo, Sony and Jabil, Flextronics

• Booming sectors: IT manufacturing, telecommunications, consumer electronics

Electronics

„Hungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial culture.” Hannu Hanatala, Managing

Director, Elcoteq

8

Zenon

Elcoteq

EricssonContinental Temic

IBMSysdata

General ElectricNokiaCisco

SAPTATA Consulting

Sanofi-Aventis

Bosch Power Tool

Continental TevesValeo Auto-Electric

AudiMagna Steyr

General ElectricPhilips

GM-Opel

MichelinFlextronics

DensoVisteonPhilips Knorr-Bremse

Zeuna Starker

ZF Hungária

W.E.T.

General ElectricFlextronics

Samsung

Samsung

SamsungNokia

PhilipsDraixlmaier

Electrolux

AFT

Source: ITDH

38 multinational company R&D units

9

ZTE Employs 45 people in Budapest in sales and technical support Major partners: Invitel, T-com, Vodafone In 2010 won tender of Telenor for network development New plans: EUR 15-20 million investment, 120 jobs in

repair and manufacturing centres Repair Centre opens in January 2011 with 60 employees Second phase: manufacturing centre

Lenovo

Since 2009 Flextronics produces PCs, servers and workstations for Lenovo in Sárvár, Hungary

Lenovo’s business created 500 jobs Assembling, testing and final control

are performed in Flextronics’ factory

10

Activity in Hungary 2009 2010 2011 2012

Yearly Revenue (Bn $) 0.3 0.6 1.2 3

Countries served from ESC 20 35 45 45

Manufacturing plant at EMS partners (1000 m2) 15 45 100 150

Job creation (direct and indirect) 500 1000 2000 3000

ESC - Europe Supply Center

• Employs 120+ in Budapest in sales and technical support• Major partners: Vodafone, T-Com, Invitel, Telenor, GTS

Datanet, Antenna Hungaria• Europe Supply Center:

plans up to 2012

Huawei

11

Talentis Business Park www.tbp.hu 100.000sqm office-park: Business area,

offices, laboratories, headquaters for trade companies / 10 万平方米的 Talentis 商务、办公园区 设有商务区，办公室，实验室，贸易

公司总部等

Business and Technology Center in CEE: Talentis-在中东欧地区的商务技术中心Close cooperation with 14 municipal governments/在 TALENTIS 地区的 14 个地区政府有密切的合作Built-to-suit solutions/ 寻找适合的解决方案All-inclusive enterprise services (from company establishment to HR management)/ 全面的企业服务（从公司建立到人力资源管理 )

12

1.) Direct Cash Subsidy • Option 1: Cash subsidy based on the decision of the Hungarian Government• Option 2: EU co-financed cash grant, schemes to be announced early 2011

2.) Development tax allowance

3.) Job creation subsidy

4.) Tender supporting job creation

5.) Training subsidy

6.) Benefits by regional Labour Centres

Hungarian Government provides incentives for large investment projects

13

BeijingHungarian Embassy Commercial OfficeSan Li Tun, Dong Zhi Men Wai No. 10.Beijing 100600Mr. Csaba WOLFCommercial CounsellorTel.: (86)-10-6532-3787Fax: (86)-10-6532-5131E-mail: csaba.wolf@itd.huMs. Márta BALOGHSecond SecretaryTel.: (86)-10-6532-3182Mobile: (86)-134-2641-7786e-mail: marta.balogh@itd.hu

ChongqingHungarian Consulate GeneralJW Marriott HotelNo. 77, Qingnian Street, Yuzhong DistrictChongqing 400010Mr. Béla BÁTHORIConsul GeneralTel: (86)-23-6300-1878E-mail: Mission.CKG@kum.hu

ShanghaiHungarian Consulate GeneralHai Tong Securities Building 689 Guang Dong Road 28th Floor #2811Ms. Katalin POLONYICommercial Counsellor Tel: (86)-21-6341-0564 ext. 826 Fax:(86)-21-6341-0564 ext. 822 E-mail: shanghai@itd.hu

BudapestITD HungaryAndrássy út 12.H-1061 Budapestwww.itd.huMr. Péter BUZÁSSenior ConsultantTel.: (36)-1-472-8184Fax: (36)-1-472-8180E-mail: peter.buzas@itd.huMs. Anikó KIRÁLYConsultantTel.: (36)-1-473-8284Fax: (36)-1-472-8180E-mail: aniko.kiraly@itd.hu

Opening soon in 2011: ShenzhenHungarian Commercial Office

Your Contacts

14

Géza Vass, Director GeneralDepartment of Bilateral Economic RelationsH-1055 Budapest, Margit krt. 85.Phone: (36 1) 336-7101, fax: (36 1) 336-7553E-mail: geza.vass@nfgm.gov.hu Internet: www.ngm.gov.hu

Thank you for your Thank you for your kind attention!kind attention!