HKFIH: Narrowing the Innovation Gap

NARROWING THE INNOVATION GAP

Deputy Secretary of State for Innovation Tibor Gulyás, of the Ministry for Innovation and Technology, talks to Budapest Business Journal about how Hungary can improve its position on the research and development and innovation world market.

By Kálmán Béres

BBJ: The importance of innovation is obvious, but not all countries have efficient procedures in place to support it. Where does Hungary stand on this scale?

Tibor Gulyás: If we are looking at the innovation capacity in an international comparison, we will clearly see that every country has its strengths, and also areas where it still has opportunities for growth. Efficiency and innovation capacity can be seen as an interaction of these areas. Hungary, too, has such clearly identifiable strengths, for example the level of company investment in areas of innovation or the progress in hiring a highly qualified labor force. Meanwhile, it is crucial for increasing our innovation capacity to be able to expand the available pool of highly qualified labor force and the willingness of small- and medium-sized companies to innovate.

“Our primary goal is to narrow the gap with developed European countries on areas improving innovation; therefore, probably the most important task of the last two years has been to identify the measures to be taken for Hungary to become a strong innovator. As a result of this research we have identified many values of the national R&D and innovation system, based on which we can already see the growth of the development potential.”

Our primary goal is to narrow the gap with developed European countries on areas improving innovation; therefore, probably the most important task of the last two years has been to identify the measures to be taken for Hungary to become a strong innovator. As a result of this research we have identified many values of the national R&D and innovation system, based on which we can already see the growth of the development potential. We have a reliable institutional system of higher education, which we need to support to become a strong player in implementing innovation processes. We have a research network which needs to play an essential role in basic research and another one in applied research. For that, supporting excellence must be much stronger within the stable and predictable financing system that we offer.

Apart from that, we can see big companies very successful in innovation, bringing some of their R&D to Hungary, and also SMEs increasingly active in innovation. More and more of the latter are joining the innovation space. This trend confirms that we are on the right path to create an RDI-friendly environment.

BBJ: What is the role of patents in the innovation process?

TG: Patents are important instruments for growing company value. The company value grows if it protects with patents newly produced knowledge that has a market value. We can see on an international level the growing role of patents protecting intellectual property. And because of the importance of intellectual property, we stress in an increasing number of programs that the registration of patents can ensure a longterm advantage on the market, and ignoring this will lead to

“Within the universities that set up innovation ecosystems we will set up hubs that companies will be able to use for gathering customized information and support for their development and innovation goals. The network of Scientific and Innovation Parks will contribute to this work. As a result of these measures, Hungary, building on universities, will be able to become an important knowledge center by the end of this decade.”

significant risks. The National Fund for Research, Development and Innovation is allocating specific resources to support protection of intellectual property, and even in the calls for applications we express the idea that measures taken for the protection of the achieved results are an important element of the R&D process.

BBJ: You mentioned the importance of higher education; what will be the role of universities in the future?

TG: We see the institutions of higher education as central players that, through their human resources, intellectual capital, infrastructure, services, international relations and the further development of the necessary capacities, can become central to the innovation ecosystem. This central role needs continuous development; therefore, we have been paying special attention – and will also do so in the future – to ensuring the necessary resources in these institutions. We consider equally important the cooperation between companies and universities, as well as the targeted development of a university innovation ecosystem.

Within the universities that set up innovation ecosystems we will set up hubs that companies will be able to use for gathering customized information and support for their development and innovation goals. The network of Scientific and Innovation Parks will contribute to this work. As a result of these measures, Hungary, building on universities, will be able to become an important knowledge

center by the end of this decade.

Tibor Gulyás