Good Morning Ladies and Gentlemen! I am very glad to be here because last year I had the privilige to welcome the new members of the European Network of Living Labs here in Budapest during the Hungarian EU Presidency. Besides, I am also involved in imlementation of the Research and Innovation goals of the Danube Strategy, and I think Living labs can be a useful way for the countries of the Danube Region to strengthen their competitiveness.
Now, let me give you a snapshot of the govermental system of the Hungarian research, development and innovation system that was restructured in 2011 to create a unified development and funding system in the R&D and Innovation sector. One of the most important change was that the management of the Research and Technological Innovation Fund was transfered to the National Development Agency, while the National Innovation Office is responsible mainly for the strategic affairs of the National Innovation Syystem.
I work for the National Innovation Office, which – as I mentioned – has mainly strategic role in the innovation system and controlled by the Ministry of National Economy. Besides to the strategic tasks the Office operates a Science and Technology Observatory that analysis the data concerning research, development and innovation to underpin the innovation policy and the decesion on the system. Furthermore, NIH provides innovation management services for the actors of the national innovation landscape, and the Office manages the bilateral and multilateral scientific and technologoical cooperations of the country, including the EU cooperations as well.
In accoradance of the 2020 Strategy of the EU, Hungary prepared its National Reform Programme. The R&D&I objectives of the Reform Programme are the followings:
The new Government elaborated a new plan for the development of the economy in 2010. The New Széchenyi Plan marked 7 breakthrough points, one of them is the Knowledge economy, which aims at intensify the knowledge and innovation based industry by focusing the priority areas of research and innovation, like ICT, health industry, creative industries etc.
The picture of the Hungarian R&D and Innovation system is a little bit contradictory. We have world level scientific research in some areas, but ….
This slide shows the innovation indecies of the EU members, As you can see in this slide Hungary belongs to the catching-up countries in the EU, so we have opportunity to go higher up
This spider-net chart reflects the double face of our innovation. There are some innovation indicators that are around the EU avarage but other indicators fall well below the avarage values.
This picture is also mirrors the contradiction of the Hungarian innovation system. In Hungary – due to the lot of foreign investments – there are a number of multinational companies in the high-tech industries like electronics, ICT, car manufacturing.
So the big question for Hungary is:
To tackle the difficulties of the innovation in Hungary and to rach faster innovation ….
The Role of Open Innovation in the Hungarian Innovation System (Vilmos Németh)
The Role of Open Innovation inthe Hungarian Innovation System Vilmos Németh National Innovation Office Smart Specialization for Central Europe and Living Lab Opportunities in the Light of the Danube Strategy Budapest, 2 October, 2012
European Network of Living Labs (ENoLL)European Network of Living Labs (ENoLL) Launch Event for the 5th Wave of Living Labs 16 May 2011, Budapest, Hungary
The structure of the Hungarian R&D&I system Governmental Committee of National Development11 October 2012 www.nih.gov.hu 3
Main pillars of the NIH activities Intermediatory, coordination tasks Public administrationNIH Services, agency tasks tasks Supporting R&D&I evidence- Innovation International strategy based policy R&D&I management and making cooperation and services evaluation (S&T Observatory) Effective organisation11 October 2012 www.nih.gov.hu 4
National Innovation Office (NIH)• Main tasks:• Research and Technological Innovation Fund (KTIA) is managed by the National Development Agency (NFÜ)• Knowledge base in innovation (Science and Technology Observatory), monitoring and evaluation• Planning of national R&D&I strategies and innovation programmes• International cooperation in R&D&I (EU, bilateral)• Innovation management and services
National Reform Programme – R&D&I ObjectivesMain goal: Hungary’s innovation performance should reachthe EU average by the end of the decade.Specific objectives: • Increasing the expenditure on research and development 1.8 % of GDP (1.15 % in 2009) • Renewal and implementation of the R&D&I strategy • Introduction of indirect supports: tax allowance, pre-commercial procurement, YIC • Operation of a unified R&D&I monitoring and evaluation system • Establishment of Science and Technology Observatory
Priorities of the New Széchenyi Plan .. Enhancing New Széchenyi Plan Objective: competitiveness Breakthrough in employment The Development Policy Programme of Recovery and Rise 1 million new jobs in 10 years Breakout points and Programmes of the Sectoral breakout Horizontal New Széchenyi Plan points breakout points Health industry Green economy Network Knowledge Home-creation Labour-economy Transit economy economy economy Medicinal Renewable Enterprise Knowledge, Home-creation Employment Transit economy Hungary Hungary development and innovation and and housing business Growth programme Health industry Renewable environment energy and improvement green economyMain elements for enhancing competitiveness PrinciplesTax reductionReduction of the number of taxesHalving of administrative costs and burdens of enterprises Integration Global or Development High addedSimplifying access to domestic and EU subsidy funds European creating new valueElimination of imbalances distorting competition competitiveness marketsRadical reduction of corruptionRestoring legal certainty for the benefit of the economy
Challenges in the national innovation system• Low level of academia-industry cooperation• Few innovative products and companies that are succesful globally• Low innovation intensity of companies (especially SMEs) GERD/GDP 1,15% (2010) and ratio of companies R&D expenditure inside this value was 48 %• Small number of legally protected intellectual property (patents)• Low number of professionals in the field engineering and natural sciences (1/3 of EU average)• Missing culture for exploitation of research results
Summary Innovation Index (SII) and the Hungarian position Lag behind Leaders countries Catching-up countries AverageSource: Innovation Union Scoreboard 2010
Innovation indices of Hungary vs. EU- 27 (2010)
Multinational companies in Hungary Bosch Power ToolSource:HITA Audi AFT Magna Steyr General Electric Michelin ZF Hungária Philips Flextronics W.E.T. Samsung Electrolux Nokia Samsung Draixlmaier Philips Samsung Ericsson Continental Temic GM-Opel IBM Denso Zeuna Starker Sysdata Visteon General Electric General Electric Philips Knorr-Bremse Nokia Flextronics Cisco Zenon SAP TATA Consulting Sanofi-Aventis Continental Teves Valeo Auto-Electric Elcoteq
Looking for new innovation approaches Multinational companies SMEs Start-upsHow to boost innovation in a small, open economywith some big multinational companies and with a high number of SMEs, but with low innovation activity?
Collaborative innovation environmentsTo reach faster innovation and to exploit the R&D results moreEfficiently, we need open collaborative environments where thestakeholders do research and innovation for their mutualinterests. New innovation models in Hungary: • Cooperative Research Centers (KKK) – University- Industry R&D cooperation with focus on business opportunities • University Knowledge Centers (RET) – Scientific Center of Excellence with industrial collaboration • National Technology Platforms (NTP) - Cooperation in developing long-term, joint R&D&I strategy • Innovation Clusters – Networked cooperation of institutions and companies based on common business interest in a particular industry or area.
Open innovation & Living LabsLiving Labs – User driven open innovation ecosystem where theusers are involved in the innovation process from research toproduct development via testing of prototypes.(Concept coined by Henry W. Chesbrough)
European Network of Living Labs (ENoLL)Source: ENoLL
Living Labs in Hungary• Well-being Living Lab Nagykovácsi• Innovative Learning Solutions (Flexilab)• Green Living Lab• Győr Automotive Living Lab• Homokháti Ruaral Living Lab• Creative Knowledge Center (CKC) Living Lab• DEMOLA-Budapest
DEMOLA-BudapestDEMOLA-Budapest:• is a modern, open innovation environment at the Budapest University of Technology & Economics (BME), where student- teams create new solutions to real problems• a platform, where students, professionals of project partners and the university can collaborate in R&D&I• an incubator site that connects creative students’ skills with identified need and demands from the market, with support of the industry• an opportunity for students to contribute real-life innovations with end-users• an opportunity for organizations (e.g. companies) to run agile development projects exploring novel technology-based products and services.
Why do we need to expand the LL Network in Hungary?• Few innovative SMEs – LLs can be a source of start-ups and spin-offs• Low number of high-tech products and services – LLs accelerate the prototyping and trials of innovative products and services• Weak academia-industry cooperation – LLs provide „melting pots” for researchers and industrial professionals• Low intensity of IPR activity – LLs nurture innovative ideas that can be patented• Gap between local SMEs and multinational companies – LLs attract large companies to do precompetitive research on new products and services• Weak exploitation and commercialisation of R&D results – LLs help to transfer the research results and ideas to the market• Small amount of VC investment in start-ups – LLs create lots of start-ups that are worth VC investment
Thank you for your attention! Vilmos NÉMETH National Innovation Office H-1061 Budapest, Andrássy út 12., Hungary E-mail: firstname.lastname@example.orgOctober 11, 2012 www.nih.gov.hu 19