New Innovation Approaches in Hungary

Hungary-EU-Israel Workshop onStart-ups & Innovation

Tel Aviv, 30-31 May, 2011

Vilmos NémethNational Innovation Office

Hungary

R&D&I Governance System in Hungary

Kormány

Nemzeti Kutatási, Innovációs és Tudománypolitikai Tanács(stratégiai döntéshozó testület)

MTA NEFMI KIM NGMNFM

OTKA

MRK(Magyar Rektori

Konferencia)

NIH(Nemzeti

Innovációs Hivatal)

MSZH(Magyar

Szabadalmi Hivatal)

Innovációs alapot

működtető IH

MISZ(Magyar Innovációs

Szövetség)

Government

HASNGO’s and other

civil organisations

National Council for Research, Innovation and Science Policy

Ministry for

National Economy

Ministry for

National Development

Ministry for

National Resources

Ministry for

Public Admin. and

Law Enforcement

National Office for IP (HPO)

National Scientific

Research Fund (OTKA)

National Develop-

ment Agency

National Innovation

Office

Hungarian Rectors

Conference

National Innovation Office (NIH)

Main tasks:

• Research and Technological Innovation Fund (KTIA) is managed by the National Development Agency (NFÜ)

• Knowledge base in innovation (Science and Technology Observatory), monitoring and evaluation

• Planning of national R&D&I strategies and innovation programmes

• International cooperation in R&D&I (EU, bilateral)• Innovation management and services

Innovation Performances in the EU

National Reform Program – R&D&I Objectives

Main goal: Hungary’s innovation performance should reach the EU average by the end of the decade.Specific objectives:

• Increasing the expenditure on research and development 1.8 % of GDP (1.15 % in 2009)

• Renewal and implementation of the R&D&I strategy• Introduction of indirect supports: tax allowance,

pre-commercial procurement, YIC• Operation of a unified R&D&I monitoring and evaluation system• Science and Technology Observatory will be established

R&D&I in Hungary

Contradictory picture: • World level scientific research and results in some areas

• Low level of academia-industry cooperation• Few innovative products and companies that are

successful globally• Small number of legally protected intellectual property

(patents)• Small number of spin-off companies set up by

universities and research institutions• Unfavourable institutional conditions and missing culture

for exploitation of research results

Innovation Indices of Hungary vs. EU-27 (2010)

Source: Innovation Union Scoreboard 2010

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

Medium-high & high-techmanufacturing export

International scientific co-publications

Youth aged 20-24 upper secondarylevel education

Non-R&D innovation expenditures

Employment in knowledge-intensiveactivities

SMEs innovating in-houseBusiness R&D/GDP

PCT patent applications

Community designs

Venture capital/GDP

Non-EU doctorate students

EU-27

HU/EU-27

Looking for New Innovation Approaches

How to boost innovation in a small, open economy

with some big multinational companies and with a

high number of SMEs, but with low innovation

activity?

Start-ups

SMEs

Multinational companies

Collaborative Innovation Environments

To reach faster innovation and to exploit the R&D resultsmore efficiently we need open collaborative environmentswhere the stakeholders do research and innovation fortheir mutual interests:

• Cooperative Research Centers (KKK) – University-Industry R&D cooperation with focus on business opportunities

• University Knowledge Centers (RET) – Scientific Center of Excellence with industry collaboration

• National Technology Platforms (NTP) - Cooperation in developing long-term, joint R&D&I strategy

Collaborative Innovation Environments (2)

• Innovation Clusters – Networked cooperation of institutions and companies based on common business interest in a particular industry or area.

• Living Labs – User driven open innovation ecosystem where the users are involved in the innovation process from research to product development via testing of prototypes.

IDEA Support Program (5LET)

Goal: To accelerate the process from the invention to the product development 3 phases: each phase builds upon the previous one

• I. Project development phase (max. 3 months)• II. R&D phase (max. 12 months)• III. Experimental development phase (max. 24

months)Eligible applicants: I./II. Phases – individuals, enterprises

III. Phase – only enterprisesEvaluation: project report evaluated by the Program

Committee at the end of each phase Subsidy: increasing financial support

Technology Incubator Program (TIP)Goal: To strengthen the business utilization of R&D results

• It is not about incubator houses!• It is based on international experiences including the

Israeli Technology Incubator Program Objectives:

• To create technology incubators that operate as private companies

• To promote R&D and business activities of technology-based, start-up companies to develop innovative and marketable products

• Technology and business incubation of start-up companies by the involvement of venture capital and business interest through technology incubators

Actors of the TIP Program

• Technology Incubator Company – a company that is able to provide technology and business incubation, as well as financial investments by itself or through other investors (venture capital firms, business angels, etc.).

• Technology-based Start-up Company – a company established for the development and commercialization of an R&D result or an innovative idea.

• Public funding agency – sponsor

TIP still needs to be implemented!

Thank you for your attention!

Vilmos NémethNational Innovation Office

vilmos.nemeth@nih.gov.hu