The document summarizes Hungary's cluster development policy and initiatives between 2007-2017. It notes that 34 clusters were accredited in the initial 2007-2013 period, but 80% of startup clusters disappeared without ongoing subsidies. The 2014-2017 period saw no direct public funding, requiring clusters to seek other funding sources. An evaluation led to prioritizing support for more established clusters with track records. The goals for 2017-2020 include concentrating resources on 10-15 top clusters with international partnerships and market-oriented innovation projects, as well as establishing a foundation of regional clusters focused on local strengths.

2. Resourcing Cluster
Initiatives sustainable –
Where there is no
specific support, policy or
programme -
THE HUNGARIAN CASE
Peter Keller
Head of International and Cluster Unit
Ministry for National Economy
MA for Economic Development Programmes
Sofia, 22 November 2017

3. Λ and Ω – the eternal question
Subsidize or assist them - Fish or net?
Big money or small money?
„Public financing: OIL OR COAL” (by Werner Pamminger)
….

4. Supporting cluster
management activity
Supporting cluster management
activity
Joint technology investment of
members
Supporting cluster management
activity
Joint technology investment of
members
Joint R&D&I projects of members
Individual R&D&I projects
Cluster well-being period in Hungary - 1
2007-13
Accredited
Clusters
Developing
Clusters
Start-up Clusters
EDOP(national)ROP(regional)
34 accredited clusters
41 granted co-operations
177 granted initiatives

5. Cluster well-being period in Hungary - 2
Start-up
Developed
Accredited
2007-2013
(34)
(19)
(157)

6. • Wide spread of the cluster phenomenon;
• Necessity of selection among clusters - accreditation system was introduced;
• Cluster members are more reliable regarding use of Structural Funds;
• Supporting joint R+I projects by cluster member companies;
• Building up an efficient channel to reach more than 1000 cluster members
(companies, universities, research centres);
Lessons learned – from the wellbeing period
• 80% of the start-up cluster initiatives disappeared when they run out of subsidy
• Clusters become lazy – no aspiration to provide value added services;
• Regional cluster policy – more coordination among regions (40 ICT, 25 Green)
• Supporting start-up initiatives – less money (HU: max 130.000EUR/2 years) but
more assistance, training coaching – SEE The Norwegian example!!!!

7. 2014-17 – Period for improving our policy
(No public money)
• Lack of financial sources – searching for additional financial sources:
• Strong „sponsor” inside the cluster– Chamber, University, Large company;
• Introducing value added services by the cluster management organisation;
• International projects (H2020, Danube, COSME; INTERREG EUROPE…)
• As a result of a comprehensive external evaluation on Hungarian cluster policy (2015):
• Concentrating our sources on professional clusters (at least 3 years track record);
• No financial support on start-up initiatives in the first three years;
• Improvement of accreditation system (2015):
• More focus on performance of cluster management companies
• More focus on market oriented projects and internationalisation (2015)
• New cluster call:
• Be professional – Cluster management organisation – value added services
• Cluster internationalisation (40% of eligible cost)
• Reaching the critical mass is crucial - Facilitation process for convergence among clusters
(2016)

8. Cluster well-being period – 2007-13.
Start-up
Developed
Accredited (34)
(19)
(157)(~10)
(30)
(26)
Cluster self-financing period – 2014-17.

9. 2014-17 – Positive trends in this period
(No public money)
2016-17 assisting cluster merging:
• Launching strategic cooperation between clusters – 2 good practice
for cluster merging (cross clusters as wee – IT – Biotech).
• Average number of cluster members is slowly increasing (37 40)
Five accredited clusters who unable to break through - out of the system!!
Increasing the international activates of clusters (44% - 66 %);
• Participation in international events;
• Cooperation with foreign clusters;
• Participation in EU calls (COSME, HORIZON2020);

10. Accredited Clusters in 2018
26Total
Healthcare, biotech 5
ICT 7
Environment 2
Packaging/plastics
industry
1
Construction/
Energy
1
Machinery/vehicle
production
6
Wood/furniture 1
Food 3
Annual revenue Export revenue
848 SMEs 5 027 M EUR 1 616 M EUR
82 Large enterpr. 20 428 M EUR 6 361 M EUR
Total 25 455 M EUR 7 977 M EUR

11. Cluster development policy in Hungary 2017-20.
Start-up clusters
P r o f e s s i o n a l c l u s t e r s
Accredited Clusters
Cluster mentoring
 Joint cluster track record
 Support of the cluster
management organisation
 Service development for real
collaboration
 Stable membership
 Outstanding results in cluster
cooperation
 Significant export potential
 Primary support of cluster
members’ projects
 High innovation performance
F i n a n c i a l s u p p o r t ( E D I O P )
Regional clusters
 Establishment of cooperation
 Elaboration of the framework
conditions
Joint investment,
Joint innovation,
Management
developmentManagement
development

12. Concentration of accredited clusters
 Assisting the cluster merging procedures;
 Number of cluster members (40 → 100) - most relevant players of the value chain;
 Professional cluster management;
Implementing market oriented projects
 Market oriented innovation;
 Launching Industry 4.0 solutions;
International visibility - At least two contracted international projects at each cluster
 As a result of cluster concentration, increasing number of participation in successful
international partnerships (Horizon2020, COSME, INTERREG EUROPE etc.)
Main goals to reach until 2020
10-15 TOP clusters with international visibility and market-oriented R+I projects
At least 3 cooperative projects at each cluster
that have generated profit by selling
their jointly developed products/ services
Strong basis of regional clusters specialised on their local strengths

13. www.klaszterfejlesztes.hu
klaszterfejlesztes@ngm.gov.hu
www.palyazat.gov.hu
Thank you for
your attention!
Peter Keller
peter.keller@ngm.gov.hu
00 36 1 896 1302