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A magyar nemzeti innovációs rendszer: Háttértanulmány az OECD 2007/2008. évi innovációs országjelentése számára
[National system of innovation in Hungary: Background report for the OECD Country Review 2007/2008]

Author

Listed:
  • Havas, Attila
  • Nyiri, Lajos

Abstract

The Hungarian NIS has gone through a significant transition process since the early 1990s. The expansion of business R&D, both in terms of total expenditures and the number business R&D units, indicates a stronger base relying on which innovation capabilities can be improved, albeit from a low level. But the low hare of innovative firms and the huge difference between the foreign-owned and indigenous firms’ innovation activities highlight major challenges of the NIS. These figures suggest that Hungary continues to suffer from a dual economy syndrome: it is composed of highly productive and technologically intensive foreign-owned large firms, and fragile, financially and technologically weak indigenous SMEs. The period of 1990-2007 has not been long enough to find an appropriate position for science, technology and innovation (STI) in government policies and integrate this field effectively into an overall socio-economic development strategy. The low level of co-ordination and integration across policies result in ad hoc policy formation and implementation. In spite of the impressive number and range of STI policy measures, for most innovation performance indicators Hungary is lagging considerably behind most EU countries. A number of hypotheses can be put forward concerning the root cause of this major challenge. The most plausible one stresses the chief role of the so-called framework conditions. The macroeconomic situation, the structure of the economy, the level and type of competition, the overall entrepreneurship culture, and human resources have so unfavourable impacts on innovation activities of firms that the incentives provided by STI policy schemes cannot counterbalance those effects. The Hungarian national innovation system is challenged by the pressing need that the country should move from the dominance of low cost economic activities towards an innovation-driven economy. Several weaknesses of the current NIS inhibit this fundamental strategic move: low demand for innovation and R&D, slow diffusion of innovations, poor co-operation capabilities, and ineffective governance.

Suggested Citation

  • Havas, Attila & Nyiri, Lajos, 2007. "A magyar nemzeti innovációs rendszer: Háttértanulmány az OECD 2007/2008. évi innovációs országjelentése számára [National system of innovation in Hungary: Background report for the OECD Country Rev," MPRA Paper 69379, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:69379
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Bajmócy, Zoltán & Vas, Zsófia, 2012. "Az innovációs rendszerek 25 éve. Szakirodalmi áttekintés evolúciós közgazdaságtani megközelítésben [25 years of innovation systems. A literature review from the angle of evolutionary economics]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1233-1256.
    2. Havas, Attila, 2014. "Mit mér(j)ünk?. Az innováció értelmezései - szakpolitikai következmények [The theory and measurement of innovation and its mutual effect on policy]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 1022-1059.
    3. Alexandra Vécsey, 2015. "The Role of the Internet in The Innovation of SMEs: Opportunity and Threat," Proceedings of FIKUSZ 2015, in: Jolán Velencei (ed.),Proceedings of FIKUSZ '15, pages 251-262, Óbuda University, Keleti Faculty of Business and Management.

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    More about this item

    Keywords

    National innovation system; Innovation performance; Foreign direct investment; Business-academia co-operation; STI policies; Policy co-ordination; Hungary;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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