University Miskolc

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Knowledge centres in Northern Hungary Seeking partners in science and technology based ventures

Ildiko KNEISZ University of Miskolc HUNGARY

Einhoven April 2010

15th

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

University of Miskolc • Faculty – Of Earth Science and Engineering – Of Materials Science and Engineering – Of Mechanical Engineering and Informatics – Of Law – Of Economics – Of Arts – Of Teacher Training Bartók Béla Music Institute

• Innovation & Research – Innovation and Technology Transfer Centre – Research Institute of Applied Earth Sciences – Mechatronics and Logistics Systems Regional University Knowledge Centre – Innovation management Cooperation Research Center

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Innovation management Cooperation Research Center • started its operation in 2005 • Main objective: to help the partner companies and other SMEs in the region to improve the economic and market efficiency of their innovational and R&D activities relying on the economic and management research capacities of the Faculty of Economics of the University • Direct services are: – – – – –

supporting the patent process looking for innovational solutions informational services economic, business and marketing consultations innovation project-planning and management

Institute of World and Regional Economics

UNIVERSITY OF MISKOLC – Faculty of Economics

National strategy settings 2007-2013 Goals: Gross Innovation Index reaches EU avergare by 2013.

Indicator

2005 (fact)

2010 (target)

2013 (target)

R&D / GDP

0.95%

1.40%

1.80%

BERD

0.37%

0.63%

0.90%

new products

4.2%

5.0%

6.0%

S&T graduates

5.1%

5.5%

6.0%

EU patent

18.9

24.0

28.0

early VC/GDP

0.004

0.005

0.006

Source: www.nkth.gov.hu

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Financing R+D by regions and sources

Source: Hungarian Statistical Ofiice

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Facing problems R+D+I COMPETITION DECLINES FOR YEARS Main reasons: – extremly low R+D+I expenditures and staff, – low participation of SMEs in R+D+I activities, – extremly low level of MSc students in Sciences and PhD, – networking problems.

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Innovation capacity R&D institutes in Northern Hungary Number of R&D units, 2008

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Technology providers in Northern Hungary

UNIVERSITY OF MISKOLC –Strengths Faculty of Economics  Presence of higher education institutes.  The growth of university, college R&D potential, the creation of knowledge centres, their increasing economic openness.  The region has important traditions in the field of machinery, metallurgy (Miskolc, Salgótarján, Ózd) and chemistry (Kazincbarcika, Tiszaújváros).  The strong representation of the technical culture, technical qualification, their presence as an economic asset.

Institute of World and Regional Economics

 The number of foreign companies settling in the region and the number of their employees is increasing. (E.g.: Bosch) some of which has its production plant in the region.  The presence of integrator companies which wield international leverage in the field of chemistry, machinery and vehicle assembly.  The strengthening of the initiatives which aim at elaborating enterprise clusters, enterprise networks.  Good access to road and railroad links, endowance of infocommunication networks.

 The growing presence of industrial parks in the region.

NORTHERN HUNGARY - SWOT Weaknesses  Small number of entreprises with strong market position and significant capital, the existing ones are concentrated in Miskolc, Tiszaújváros, Eger, Kazincbarcika.  The SMEs lack capital, suffer from regular liquidity problems, their market position, competitiveness , income-generating capacity is weak, their level of cooperation is low.  The SMEs of the region lack capital , only a fraction of them is able to export, subcontracting is of low level.  The number of innovative enterprises is small.  Low innovation culture, and risk-taking ability.  Lack of concentration in the R&D activity.

 The centres of the disadvantaged microregions generally lack industrial sites, incubation houses and counselling services which incite the settling, operation, and assistance of enterprises.  The network of innovation transfer organisations is of lowquality or missing, the link between the R&D institutions of the region and the entreprises is insufficient.  The participation of potential innovation players in national and international networks is trivial , the international relationship of the enterprises is underdeveloped., the lack of innovative clusters.  The number of jobs employing professionals is low especially in the middle-sized and small-sized towns which stimulates the emigration of professionals.  Unemployment is high, its composition is unfavourable.

Opportunities UNIVERSITY OF MISKOLC – Faculty of Economics  The support of innovation and R&D activities remains an important development priority at European and national level, the innovation-based utilisation of the Structural Funds of the EU, the announcement of new domestic call for proposals is to be expected in the future.  The stimulation of international co-operation (especially regional).  The appraisal of the role of economic co-operations, transfer organisations, the strengthening of the link between research bodies and SMEs.  The appraisal of the role of economic co-operations, the dynamisation of the links between the local economic players and the existing scientific potential.

Institute of World and Regional Economics

Demand for knowledge-centres.  The appearance of intervention-packages, call for proposals for SMEs in the field of innovation.  Increasing utilisation of information as resources, demand for the dissemination of results.  The strengthening of environmental-consciousness.  The improvement of innovation and entrepreneurial spirit.

NORTHERN HUNGARY - SWOT Threats  Continuation of emigration and brain-drain.  The human resource potential of the region remains low.  The brain-drain of the neighbouring regions will strengthen. Permanent unemployment and the correlated social problems will remain. Due to the unfavourable economic policy factors, the investment propensity will decrease, which in turn has an adverse effect on job creation.  The geographical concentration of population is strengthening, the region’s economy lagging behind will increase.

 The interregional economic linkages will not be built sufficiently.

The lack of own resources and the lack of sufficiently underpinned projects may hinder the region’s proper utilisation of EU funds.  The weakening of cooperation capabilities is low.  The interregional economic linkages will not be built sufficiently. The market opportunity of SMEs will dwindle due to the lack of product development, the SMEs are characterised by a constant lack of capital, especially in the case of funds which can be dedicated to R&D.  The demand for innovation in the case of SMEs remains low.

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Background of the NORRIS Project • Starting point: 1st June 2005 ;

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

North Hungarian Regional Development Agency Bay Zoltan Foundation for Applied Research University of Miskolc Borsod-Abaúj-Zemplén County Government Hungarian Investment and Trade Development Agency Košice Self-Governing Region Technical University of Košice Agency for the Support of Regional Development JOANNEUM RESEARCH, Institute of Technology and Regional Policy La Fundacion de Automatización, Robótica y Tecnologías de la Información y de la Fabricación

• Duration: 32 months; • 10 members within the consortium; • Co-financed by the EU; • According to EU RIS Methodology; • Technically supported by Innovating Regions in Europe • 3 workphases;

Unique, interregional-bilateral form!

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Results and outcomes • Inventory map about the actors interested in innovation; • Comparative analysis of the results of previous projects and planned policies; • Background analyses (technological and regional strengths); • European good practice review, comparative analysis with the application of benchmarking tools; • Evaluation and comparative analysis • relevant programming documents • on EU, national levels.

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

SME support of the project

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

ANALYSES OF REGIONAL SUPPLY AND DEMAND

Demand side

Supply side

SMEs and larger companies

Technology Resource Cent.

Business Supporting Org. Public Org.

• 500-500 SMEs and larger companies have been initiated; • 15-15 Technology Centres and R&D Institutions have been asked.

• Both qualitative and quantitative methods have been applied; • Depth-Interviews and Questionnaires have been used.

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Sectors with special importance • Based on the preliminary analyses some region specific sectors were selected according to their shares in the labour market and GVA; • Common branches: 1. Machine industry; 2. Electrical and optical equipment; 3. Food industry; 4. Material production; 5. Environment industry.

• Added sectors on Hungarian side: Chemical and plastic industry, Transport, telecommunication and Logistics, Community and public services, Steel Industry.

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Results of the Analyses Supply side (Technology Centres and Institutions): • Technology Resource Centres form opinion on mechanism of regional innovation funds; • The geographical scope of the innovation activities on rather local and national level than international; • Nevertheless there are many existing relationships among the centres and institutions; • Demand for innovation and R&D is created only by a few companies in the region; • Most of the technology providers are not orientated to applied researches, they remain on theoretical level; • Education, open days and dissemination could be tools to motivate SMEs’ innovation activity.

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Supply side analysis • Important branches: – Mechanical engineering; – Production of electric and optical equipment; – Food industry; – Production of raw material; – Environment industry.

– Chemical- and plastic industry; – Metallurgy and metal processing; – Transportation and warehousing

• List of the services which can be provided: – – – – –

– – – –

Development of R&D projects Quality and authentication Introduction of technology Technical consultation Support for the information management Search for partners Support for the preparation of business/product plan Support for making the businesses international Etc.

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Results of the Analyses Demand side (SMEs and large companies): • Not enough well skilled manpower representing bottleneck for most of the firms; • SME’s claim for more technological development, assistance; • SME’s restrained possibilities for financing innovation; • Currently most of the companies are not taking part in any innovation project; • Large companies have their own innovation strategies and plans, which are not harmonized with any regional objective;

• Innovation „information flows” do not reach the companies in every case; • Lack of connection between any Slovakian or Hungarian partners; • Need of information on potential partners, consortiums or projects.

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Innovation Strategy for Northern Hungary VISION AND MISSION To make the competitiveness grow in the economy’s most important sectors by concerted development of the socio-economic centres of the region and its peripheries. It is facilitated by the continuously and importantly developing infrastructure, and the exploitation of the geographical and social capability assuring the environment which can be lived, the adequate level quality of life and the openness towards other regions .

STRATEGIC AIM With assigning and focusing on the research development activities’ and the innovative processes’ target system, the frame- and environmental condition system continuous improvement, the knowledge an technology transfer conscious operation and development, promoting and developing the exploitation of the available synergies by the networking contacts in the region and the economic competitiveness of enterprises in the region.

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Priorities

I. Innovative infrastructure, development of the service and financing system

II. Development of the III. Promoting the environmental contacts and enterprises’ innovative- and condition systems the income attractive ability, network condition, technology and knowledge intensive development.

UNIVERSITY OF MISKOLC – Faculty of Economics

Institute of World and Regional Economics

Thank you for your kind attention!

Ildiko KNEISZ E-mail: kneisz.ildiko@uni-miskolc.hu Web: www.uni-miskolc.hu NORRIS PROJECT www.norrisproject.eu Daniel KUTTOR kuttor.daniel@uni-miskolc.hu