Download 1. dia

Co-operation of public and
private funding in financing the
innovation process
Dr. Tamás Balogh
Innovation and R&D Department, Ministry of Economy and
Transport
Finnish-Hungarian Seminar "Innovation and Success”,
Budapest, 4 December 2006.
But: Albert SzentGyörgyi was the only
Hungarian born
Nobel Prize Laurate
scientist obtaining the
Scientific
heritage
Prize in Hungary.
7
GROWTH
= EU15 +
2%
HUNGARY
Magyarország
6
5
EU-15
4
3
2
1
2005
2004
2003
2002
2001
0
2000
%, előző év azonos időszakához viszonyítva
Growth of Hungary and the EU-15 average
Macroeconomic figures
2001 2002 2003 2004
2005
Gross domestic product (%)
3.8
3.5
3.0
4.6
4.1
Industrial production (%)
3.6
2.8
6.4
8.3
7.3
Exports (% - volume)
7.7
5.9
9.1
17.0
10.8
Imports (% - volume)
4.0
5.1
10.1
14.0
5.3
Consumer prices (%)
9.2
5.3
4.7
6.8
3.6
Balance of foreign trade (bn EUR)
-2.5
-3.4
-4.2
-3.9
-2.8
Current account balance (bn EUR)
-3,6
-4.9
-6.5
-7.0
-6.4
FDI (bn EUR)
4.4
3.2
2.0
3.7
5.4
Unemployment rate (%)
5.7
5.9
5.8
6.0
7.2
Source: Hungarian Central Statistical Office,
GKI Economic Research Institute of Hungary
Summary
Innovation
Index
CATCHING
UP
Source: Innovation
Trend Chart 2005.
GERD/GDP, %
1,20
1,00
0,80
1,08
1,00
0,94
0,93
0,75
0,67
0,74 0,70
0,68
0,82
1,01
0,95
0,89
0,95
0,60
0,40
0,20
0,00
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Gross R&D
expenditures per
GDP are still in
the lower third of
the EU, …
…but the trend is
improving.
Innovation is a
top priority of the
government.
Business
enterprises
should be more
active in R&D …
… and the
government
promotes that by
generous tax
benefits.
Plus a variety of R&D
programmes.
Tax measures for R&D and IPR
• 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.
Strong
foreign
presence in
corporate
R&D
activities.
World class knowledge
base in some fields (IT,
maths, physics, life
sciences, chemistry,
etc.).
Bosch Power Tool
CORPORATE
Audi
RESEARCH Magna Steyr
General Electric
Philips
CENTRES
AFT
ZF Hungária
W.E.T. Samsung
Nokia
Draixlmaier
Samsung
Philips
GM-Opel
General Electric
Flextronics
Continental Teves
Valeo Auto-Electric
Denso
Visteon
Philips
Electrolux
Samsung
Zeuna Starker
Knorr-Bremse
Zenon
Elcoteq
Source:ITDH
Michelin
Flextronics
Ericsson
Continental Temic
IBM
Sysdata
General Electric
Nokia
Cisco
SAP
TATA Consulting
Sanofi-Aventis
Consequently,
high-tech
manufacturing
industries play
very important
role in the
economy…
… boosting
Hungary’s
high-tech
manufacturing
exports.
Public sources for R&D and
innovation programmes (2007-)
• Research and Technology Innovation Fund
• Economy Development Operational
(„GOP”, ERDF co-financed)
Close co-ordination,
working as one
Programme
organic system
• National Scientific Research Fund (OTKA)
• EU 7th RTD Framework Programme
• EU Competitiveness and Innovation Programme
The innovation value
chain…
Market
success, growth
Market entry,
mass production
Experimental
dev’ment, IPR
Applied research
Supporting stock
market entry
New idea,
basic research
Market conform enterprise financing
tools (credit, capital, guarantee)
National R&D and Innovation
programme (GVOP/GOP and KTIA)
University and MTA
basic financing
OTKA
… and the applied government tools
KNOWLEDGE BASED
HUNGARY
Thank you for your attention!
www.gkm.gov.hu