Hungarian Innovation Policy: What's the Best Way Forward?

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Hungarian Innovation Policy: What's the Best Way Forward?

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Philip Hemmings

Abstract

The Hungarian government has recently been focusing on innovation policy as part of a wider campaign to improve the business environment. This paper first underscores the importance of a good general business climate in encouraging both formal and informal R&D activity as well as ensuring Hungary benefits from the international diffusion of innovation. In examining specific innovation policies, the new National Innovation System is described and an assessment is made of the National Innovation Fund and the Innovation Contribution used to fund it. Assessment of changes in R&D tax allowances and in the strategy for giving out grants for research is also made. The paper also looks at regulatory reform to improve industry-science links, including the government’s recent legislative changes that make it easier for universities to set up spin-off companies. The final section considers what further reforms are needed to help tertiary and compulsory education become more conducive to innovation and to encourage the deepening of human capital in general.

La politique d'innovation en Hongrie : La meilleure façon d'avancer?
Le gouvernement hongrois a récemment mis l'accent sur la politique d'innovation dans le cadre plus vaste d'une campagne destinée à améliorer l'environnement des entreprises. Cet document souligne à quel point il est important que le climat général des affaires soit bon pour encourager les activités formelles de recherche-développement (R-D) et les types plus informels d'innovation, et pour que la Hongrie puisse tirer parti de la diffusion internationale de l'innovation. Dans le cadre de l'examen des dispositifs spécifiques de promotion de l'innovation, nous décrivons le nouveau Système national d'innovation et nous évaluons le Fonds national pour l'innovation, ainsi que la Contribution à l'innovation utilisée pour le financer. Nous examinons également l'évolution des mécanismes de crédits d'impôt et de la stratégie d'attribution des subventions de recherche. Cet document aborde ensuite les mesures de réforme de la réglementation axées sur le resserrement des liens entre entreprises et milieux scientifiques, notamment les dispositions législatives adoptées récemment qui facilitent la création par les universités d'entreprises issues de la recherche. Dans la dernière partie, nous nous demandons quelles sont les réformes complémentaires nécessaires pour que l'enseignement supérieur et l'enseignement obligatoire favorisent davantage l'innovation et le renforcement du capital humain en général.

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Paper provided by OECD, Economics Department in its series OECD Economics Department Working Papers with number 445.

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Date of creation: 28 Sep 2005
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Handle: RePEc:oec:ecoaaa:445-en

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Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-10-15 (All new papers)
NEP-EEC-2005-10-15 (European Economics)
NEP-INO-2005-10-15 (Innovation)
NEP-TRA-2005-10-15 (Transition Economics)

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