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Application of a Method for Measuring

and Developing the Innovation Potential

of Small Regions in Hungary

Miskolc – Lillafüred

26. 03. 2004.

György Kocziszky – István Bakos

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Contents

1. Justification of the investigation

2. Objective and method

3. Results

3.1 Institutional potential

3.2 Human potential

3.3 Local potential

3.4 Economic potential

4. Recommendations

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1. Justification of the innovation potential investigation

● The gap in economy/society keeps increasing between the region and other parts of the country

● Lasting high rate of unemployment

● Decreasing number of population, ageing

● Migration of qualified labour

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2. Method of the innovation potential investigation

innovative environment

Input indicators

i n n o v a t i o noutput

indocators

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Institutional background Human potential

• Number of R + D sites • Number of organisations involved in R + D activities • Ratio of R + D expenditure • Application activity • Vision / strategy • Number of those employed in R + D sites

• population density • innovation age ratio • average education • higher education qualification • foreign language proficiency • migration indicator • ratio of those employed

Local potential Economic potential

• human infrastructure facilities (10)

• technical infrastructure facilities (6)

• number of enterprises in operation • enterprise density • average gold crown value • Company profit tax • number of guest nights • welfare indicator (personal income tax) • utilisation of accomodation capacity

2. Indicators of innovation potential investigation at small region level

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3.2 Human resources potential: Innovation age ratio

MeagreLowAverage (national)HighOutstanding

Legend

Source: using KSH (CTO) data (2001.)

Innovation potential of the region of Northern Hungary

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3.2 Human resources potential: Average education

MeagreLowAverage (national)HighOutstanding

Legend

Source: using KSH (CSO) data (2001.)

Innovation potential of the region of Northern Hungary

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3.3 Local potential: Commercial facilities

MeagreLowAverage (national)HighOutstanding

Legend

Source: using KSH (CSO) data (2001.)

Innovation potential of the region of Northern Hungary

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3.3 Local potential: Sewage facilities

MeagreLowAverage (national)HighOutdstanding

Legend

Source: using KSH (CSO) data (2001.)

Innovation potential of the region of Northern Hungary

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3.4 Economic potential: Enterprise density

MeagreLowAverage (national)HighOutstanding

Legend

Source: using KSH (CSO) data (2001.)

Innovation potential of the region of Northern Hungary

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Innovation potential of the region of Northern Hungary

Innovation potential of small regions in the region of Northern Hungary based on factor analysis

Jelmagyarázat

Jó

Közepes

Gyenge

Alacsony

Meagre

Low

Average (national)

Outstanding

Legend

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4. Recommendations

No. Objective Measures recommended

4.1. Supporting the establishment of innovative environment

• Supporting the development of creativity in the education system• Establishing an Innovation Price• Setting up an inno-barometer

4.2. Supporting the emergence of innovative networks

• Supporting the development of technology parks and incubator houses• Developing guarantee-funds-like mechanisms• Interdisciplinary education and vocational training, innovation- management courses • Specialist initiatives to support starting high-tech companies

4.3. Promoting the inflow of knowledge and technology

• Developing a system of support to enable companies to gain access to results of state-run research institutes, supporting pre-competitive research for the industrial implementation of the results• improving the conditions for establishing industrial clusters• Providing opportunities for developing production engineering FP6

4.4. Developing practice supporting innovation

• Preparing system and innovation analyses to facilitate comparison with EU Innovation Surveys• Evaluation of tools and structures supporting innovation, measuring their efficiency, organising finacial or business forums to discuss innovation issues, technology preview to monitor technological trends, etc.

4.5. Monitoring regional innovation potential

• Regular measurement of local innovation potential based on a database, SWOT analysis for planning innovation strategies

Innovation potential of the region of Northern Hungary

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Institutions ofEducation

Enterprise DevelopmentOrganisations

Trade and Professional

Interest Groups

R+DInstitutions

Finance Institutions

Regional Development Organisations

Production and Service Companies

4.2 Supporting the emergence of innovative networks

Innovation potential of the region of Northern Hungary