Vilmos Németh, ENoLL event May 16th, 2011.

1. Open Innovation Approaches in
Hungary
Vilmos Németh
National Innovation Office
ENoLL Event
Budapest, 16 May, 2011

2. www.nih.gov.hu | 2.May 24, 2011
Challenges at the Beginning of the
21th Century
Economic
crisis
Shortage of energy
resources
Sustainable
environment
Aging
population
Globalization
Natural
disasters
Unemployment Climate change

3. www.nih.gov.hu | 3.May 24, 2011
EU 2020 Strategy
A European strategy for
smart, sustainable and
inclusive growth
• 3 Priorities
• 5 Targets
• 7 Flagship initiatives

4. www.nih.gov.hu | 4.May 24, 2011
EU 2020 sets out a vision of Europe's social market
economy for the 21st century.
Three mutually reinforcing priorities:
1. Smart growth: developing an economy based on
knowledge and innovation.
2. Sustainable growth: promoting a more resource
efficient, greener and more competitive economy.
3. Inclusive growth: fostering a high-employment economy
delivering social and territorial cohesion.
EU 2020 Priorities

5. www.nih.gov.hu | 5.May 24, 2011
By 2020
1. 75 % employment rate (% of population aged 20-64
years)
2. 3% investment in R&D (% of EU’s GDP).
and an innovation indicator
3. “20/20/20” climate/energy targets met (incl. 30%
emissions reduction if conditions are right)
4. < 10% early school leavers & min. 40% hold tertiary
degree
5. 20 million less people should be at risk of poverty
EU 2020 Targets

6. www.nih.gov.hu | 6.May 24, 2011
EU 2020 Strategy
Main pillars and flagship initiatives
Smart growth
Sustainable growth
Inclusive growth
„Innovation Union”
Improve of the conditions of R&D
„Youth on the move”
Enhance the performance of the education
„A Digital Agenda for Europe”
Development of Internet access
„Resource efficient Europe”
Energy efficiency and low carbon economy
„Industrial policy for the globalisation era”
Improvement of the business environment
„An Agenda for new skills and jobs”
Modernising labour market, Life-long learning
„European Platform against Poverty”
Ensure economic, social and territorial cohesion

7. www.nih.gov.hu | 7.May 24, 2011
National Reform Program – Main
Targets
The national targets linked to the Europe 2020 Strategy’s
headline goals:
• increasing the employment rate of the population aged
20-64 to 75 %
• increasing the expenditures on research and
development to 1.8 % of GDP
• increasing the share of renewable energy sources in
the final energy consumption to 14.6 %
• increasing the share of those having completed tertiary
level education or equivalent to 30.3 % within the
population aged 30-34
• reducing the share of people living in poverty or social
exclusion by 5 %

8. www.nih.gov.hu | 8.May 24, 2011
National Reform Program – R&D&I
Objectives
Main goal: Hungary’s innovation performance should
reach the EU average by the end of the decade
Specific oobjectives:
• 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
• Science and Technology Observatory will be
established
• Transformation of the National Innovation Office by
the end of 2011

9. www.nih.gov.hu | 9.May 24, 2011
New R&D&I Governance System in
Hungary
Kormány
Nemzeti Kutatási, Innovációs és Tudománypolitikai Tanács
(stratégiai döntéshozó testület)
MTA NEFMI KIM NGMNFM
OTKA
MRK
(Magyar
Rektori
Konferencia)
NIH
(Nemzeti
Innovációs
Hivatal)
MSZH
(Magyar
Szabadalmi
Hivatal)
Innovációs
alapot
működtető IH
MISZ
(Magyar Innovációs
Szövetség)
Government
HASc
NGO s and other
civil organisations
National Council for Research,
Innovation and Science Policy
Ministry
for
National
Economy
Ministry for
National
Development
Ministry
for
National
Resources
Ministry for
Public
Admin. and
Law
Enforcement
National
Office for
IP (HPO)
National
Scientific
Research Fund
(OTKA)
National
Develop-
ment
Agency
National
Innovation
Office
Hungarian
Rectors
Conference

10. www.nih.gov.hu | 10.May 24, 2011
Innovation performances
in EU

11. www.nih.gov.hu | 11.May 24, 2011
R&D Expenditure
The gross domestic R&D expenditure (private and public sector
expenditure) was 299 billion Ft in 2009, which is 1.15% of the GDP
– Lisbon target: 3 % of GDP
– EU average: 1,85% of GDP
Gross Domestic R&D Expenditure as percent of GDP
1,00 0,97 1,00
1,15
1,00 0,97 1,00
1,15
0,95
1,01
0,95
0,89
0,94
0,82
0,68
0,74
0,700,67
0,75
1,08
1,00
0,93 0,95
1,01
0,95
0,89
0,94
0,82
0,68
0,74
0,700,67
0,75
1,08
1,00
0,93
0,00
0,20
0,40
0,60
0,80
1,00
1,20
1,40
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

12. www.nih.gov.hu | 12.May 24, 2011
Sources of R&D Expenditures
0%
20%
40%
60%
80%
100%
1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
External
resources
Other National
State Budget
Enterprises

13. www.nih.gov.hu | 13.May 24, 2011
Innovation Indecies–Hungary vs.
EU-27 (2010)
Source: Innovation Union Scoreboard 2010
0
0,2
0,4
0,6
0,8
1
1,2
1,4
1,6
Medium-high & high-tech
manufacturing export
International scientific co-
publications
Youth aged 20-24 upper secondary
level education
Non-R&D innovation expenditures
Employment in knowledge-intensive
activities
SMEs innovating in-houseBusiness R&D/GDP
PCT patent applications
Community designs
Venture capital/GDP
Non-EU doctorate students
EU-27
HU/EU-27

14. www.nih.gov.hu | 14.May 24, 2011
Accredited Innov.
clusters (12)
CRC (19)
RUKC (19)
Key technologies
innovation
clusters (7)
Knowledge Centres and Clusters
in Hungary

15. www.nih.gov.hu | 15.May 24, 2011
Features of R&D&I Sector in
Hungary
• Contradictory picture:
• World level scientific research and results in
some areas
• Low level of academia-industry cooperation
• Few innovative products and companies that are
successful globally
• Small number of legally protected intellectual
property (patents)
• The number of spin-off companies set up by
universities and research institutions is small
• The institutional system and culture of
exploitation of research results are missing in
the Hungarian R&D sphere

16. www.nih.gov.hu | 16.May 24, 2011
Requirements of the Efficient
Innovation
How to boost innovation in a small, open economy
with some big multinational companies and with a
high number of SMEs, but with low innovation
activity?
Hungary needs a new business model of
exploitation of R&D results, a new innovation
paradigm!
To reach faster innovation we need cooperative
environments where the stakeholders (university,
R&D institution, company) do research and
innovation activity on the base of mutual interests.

17. www.nih.gov.hu | 17.May 24, 2011
Open Innovation
Open Innovation, also known as external or networked
innovation represents a shift from the traditional model
where 100 % of a company s innovation originates
from within, to a more open model where both internal
and external ideas are combined to create a more
Collaborative advantage. (Henry Chesborough 2003)
Opean innovation is focused on:
• Uncovering new ideas
• Reducing risks
• Increasing speed
• Leveraging scarce resources
• More market-focused academic research

18. www.nih.gov.hu | 18.May 24, 2011
The Opean Innovation Paradigm

19. www.nih.gov.hu | 19.May 24, 2011
• Cooperative Research Centers (CRC) ‒
University-Industry R&D cooperation with
business oriented focus
• University Knowledge Centers (UKC) ‒
Scientific Center of Excellence with industry
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
New Innovation Approaches
in Hungary

20. www.nih.gov.hu | 20.May 24, 2011
Living Labs – User driven open innovation
ecosystem
Hungarian ENoLL members:
• Automotive Living Lab in Györ
• Homokháti Rural Living Laboratory
• Creative Knowledge Centre Living Lab
Other Living Labs:
• Living Lab Budapest
• Wellfare Living Lab Nagykovácsi
• T-City Szolnok
Living Labs in Hungary

21. www.nih.gov.hu | 21.May 24, 2011
Waves of ENoLL

22. www.nih.gov.hu | 22.May 24, 2011
Aim: To discuss the role and the value of
ENoLL and User Driven Open Innovation in
the context of the societal challenges of our
time as defined in the EU 2020 Strategy.
Launch of the 5th Wave of Living Labs!
ENoLL Event Budapest

23. www.nih.gov.hu | 23.May 24, 2011
Thank you for your attention!