Prof. György BAZSA University of Debrecen, former Rector;

Hungarian Higher Education and Science Council, President; European Centre for Strategic Management of Universities

Brussels, Board Member

TEMPUS IN TOUCH SeminarAMMAN (Jordan) – 9/10 April, 2006

Hungarian Spectrum ofUniversity–Enterprise

Cooperation

Europe – Hungary - Jordan

Education:- 12 years obligatory

public education- 18 state, 5 church, 2

private universities- 12 state, 23 church,

11 private colleges~ 200.000 state funded,

~ 200.000 fee paying students

Hungary ~ 93.000 km2

~ 10 million inhabitants

University of Debrecen11 faculties – 28.000 students

Hungary – social conditions

• until 1990: state centralized economy

• early 1990-s: society in transformation to amarket oriented democracy

• since 1996/97: market based economy in function – but a present only in midway

• privatisation nearly complete

• 2004: full right EU membership

General background of R&D&I:

• High growth of GDP (4%) and export (17%)

• Low R&D expenditure, mainly by public funding

• Low innovation intensity of enterprises, especially of SMEs,

• Some MNEs have R&D units in Hungary

• Strong science base (universities and HAS), but inadequate linkages with industry

• Regional disparity, Budapest predominates

EU vs. Hungary in R&D&I:

Regional distributionof R&D expenditure

population R&DBudapest region: 20 % 52 % All others: 80 % 48 %

Actors of R&D&I in Hungary

State: interested in R&D&I, has good regulatory forces, but it is poor (GDP ~1%);

Universities: state funded, traditionally basic research oriented, less innovative, without market experience, no capital;

Enterprises: • partly big multinational firms – R&D units at headquarters, some already in Hungray• a lot of SME-s, but with small research and innovation abilities;

Venture capital: first spots already active

State policy: to promote and accelerate the economicgrowth by investing in research, develop-ment and innovation, strengthen regions.

Applied methods:• general policy supporting R&D&I • National Development Plan/EU• legal framework• funding policy and structure

Act of Research and InnovationFund (2004)

• ensures predictable and reliable financing of implementation of R&D

• consists of mandatory contributions of enterprises calculated on tax base (0.1-0.3 % of net adjusted revenues)

• matching resources from state budget• to be spent directly or indirectly on R&D and

innovation goals• 25 % dedicated to regional innov. objectives• 75 % merit based competitive funding

Act of Innovation (2004)

• enables creation of innovative firms, e.g. spin-offs, innovation parks etc.

• strengthens R&D adoption capacities• increases attractiveness of research carriers• supports industry-university relationship via

regional centres & networks• supports provision of innovation services

(lack of bridging institutions) • Tax incentives: double amount of R&D

expenditure (common with universities) can be accounted.

National Development Plan

• Increase GERD/GDP to 1,5% by 2006

• Shift R&D to innovation

• Stimulate more enterprise R&D expenditure

• Helping SMEs to catch up innovation

• Enhancing regions

• Setting up Regional Innovation Agencies

• Promote industry-academia collaboration

University: produces new, disseminates/applies (old and new) knowledge – mainly in a scientific interest (curiosity)driven (non-profit) way. Published results!

Enterprise: applies (old and new) knowledge in order to produce goods – mainly in a financial profit driven way. Confident results!

University–Enterprise cooperation: a good synthesis of these functions, to achieve a common goal – in the interest of both parties – in general serving society (mankind)

[We consider mainly hard sciences.]

U&E self-initiatives in R&D field

• Access to special equipment of enterprise/ university with or without assistance of the owner’s organisations

• Deposition of hardware and software at universities – for research and for advertisement reasons)

• Donation of modern instruments, complete labora- tories) for training and research (e.g. IT, medicine)

• Research contracts financed by enterprises• „Outplaced” U-chairs with collaborative research• Joint patents and their realisation (rare in H/EU)• Consultation services (e.g. agriculture, technology)

Cooperation initiated by state programme funding:

Hungarian Central Development Fund (KMÜFA) – supports U&E cooperation, requires measurable impacts. E. g.

• Biotechnology 2000;• Technology for environmental protection;• Infocommunication techn. and applications• Up-to-date equipment purchase (for uni-s);• Setting up high tech R&D laboratories

These represent mainly infrastructure support for research, which develops cooperations

Cooperation forms forced by state programme funding:

• Cooperative Research Centre-s (KKK) – uni based, but with enterprises (5 examples);

• Széchenyi Plan – National Research and Development Programme – R&D projects of consortia led by HE or R&D institutes;

• A broad system of R&D&I programmes – introduced by National Research and Development Office – since 2003.

R&D&I Knowledge Centres – aims

• Regional concentration of skills and know-how over critical mass

• Securing postdoctoral jobs• Fostering new roles of universities in their

regions• Collaboration between university + enterprise• Encourage creation of innovative SMEs, start-

up, spin-offs, innovation parks etc.• Strengthen research and technology adoption

capacities

R&D&I Knowledge Centres (2005) – based on research universities

• e-Science – ELTE, Budapest

• Vehicles and Vehicle Control, BME, Budapest

• Infobionic Knowledge, SE Budapest

• GENOMNANOTECH – U Debrecen

• Mechatronic & Logistic Systems, U Miskolc

• Neurobiology, U Szeged

New Act on Higher EducationNew Act on Higher Education (effective March 1, 2006)

Cooperation in training – national level

Vertical structure of HE

• 3 linear cycles: Bachelor – Master – PhD• professional skills (competencies) and• HE qualification earned in parallel

• in most vocational (R&D related) fields: +1 semester for work experience (in field)

Hungarian Bachelor welcome – March 2006.

Cooperation in training – national level

Horizontal structure of HE:

• degree programmes in training fields of humanities, arts, social, religious, economic, business, agricultural, natural, medical, technical sciences

• distribution of state funded places among training fields and institutions – based (partly) on labour market demands

This is one of the main functions of Higher Education and Science Council

New Act on Higher Education:New Act on Higher Education: Cooperation of special Hungarian art

U-Senate (all decisions) – supported by an

U-Economic Council (Advisory Board) – in state- owned higher education institutions.

Aim of Economic Councils: • separates academic and management affairs• takes initiatives for strategic decisions• controls measures for efficient management• import of experience and mentality of excellent

leaders, experts in economy, business, public affairs, institutional management etc.

New Act on Higher Education:New Act on Higher Education:

Never enjoyed high level of freedom in insti-tutional economy and management (differs from the provisions of public finances regulation)

• transfer appropriations,• keep their own income in a separate account,• pursue business activities without the obligation to

pay any taxes and duties,• have the right to found businesses, economic

enterprises and foundations (without state permission),• take out loans subject to certain conditions,• launch investment projects with loans,• subscribe government securities,• set up risk funds.

Cooperation at individual level – in training

• Lectures of enterprise experts held at universities (honorary professor titles)

• Lectures of faculty members held at enterprise (in field trainings organized by the firms)

• Joint supervision of Master or PhD theses• Ad hoc consultations between the parties • Joint publication of university and enterprise staff

Cooperation at institutional level – in training

• second degree programmes (with tuition fee, therefore labour market oriented)

• degree specialization programmes (chemical engineer – specialist in plastics, pharmacy, environmental analysis, silica etc.) – all fields are covered

• support of innovative and outstanding research students (with awards and money)

• R&D cooperation agreement in wide variety

Partnership with chambers, Hungarian Innovation Association etc.

Evaluation of skills of graduates by enterprises (scale 0 – 5)

Practical skills --------------------Computer knowledge ---------- Technical skills ------------------Economic knowledge ----------Calculation skills ----------------Communication and writing -- Foreign languages -------------Independent working ----------Work discipline -----------------Working culture -----------------Co-operative skills -------------Average - - - - - - - - - - - - - - -

Co-operation in international level• Lisbon agenda

• European Hugher Educaion Area

• European Research and Innovation Area

• COST, ESF, EUREKA,

• EU frameworks (ERA-NET, INCO-NET)

TempusTempus: : many actions (incl. this seminar)many actions (incl. this seminar)+ Handbook University-Enterprise cooperation Tempus Output Programme (Phare)

Kurt König, Head of the CORDIS Unit at OPOCE (20-03-2006): there is currently a communication gap between the science and business communities.

Random Hungarian media mirror – in black and white

• The most creative researcher is lost in business world

• Researchers don’t leave the professorship for venture

• Stable civil servant payment is more attractive than withdrawal from venture

• Venture is a hard task for European talents

Random European U-E examples – in black and white

• Teknia – Kuopio (SF)

• Otaniemi International Innovation Centre – Helsinki, HUT (SF)

• LU Innovation – Lund University (S)

• etc.

Please, continue!

Thank you for your kind attention!

My conclusion:

The spectrum and effectiveness of University–Enterprise Cooperation

both in Hungary and Europeis definitely in progress, but

could and should be broadened.