University Miskolc

UNIVERSITY OF MISKOLC – Faculty of EconomicsInstitute of World and

Regional Economics

Ildiko KNEISZUniversity of Miskolc

HUNGARY

Knowledge centres in Northern Hungary

Seeking partners in science and technology based ventures

Einhoven15th April 2010


Regional Economics

University of Miskolc

• Faculty

– Of Earth Science and Engineering

– Of Materials Science and Engineering

– Of Mechanical Engineering and Informatics

– Of Law

– Of Economics

– Of Arts

– Of Teacher Training

Bartók Béla Music Institute

• Innovation & Research

– Innovation and Technology Transfer Centre

– Research Institute of Applied Earth Sciences

– Mechatronics and Logistics Systems Regional University

Knowledge Centre

– Innovation management Cooperation Research Center


Regional Economics

Innovation management Cooperation Research Center

• started its operation in 2005

• Main objective: to help the partner companies and other

SMEs in the region to improve the economic and market

efficiency of their innovational and R&D activities relying

on the economic and management research capacities of

the Faculty of Economics of the University

• Direct services are:

– supporting the patent process

– looking for innovational solutions

– informational services

– economic, business and marketing consultations

– innovation project-planning and management


Regional Economics

National strategy settings 2007-2013

Goals: Gross Innovation Index reaches EU avergare by 2013.

Indicator 2005 (fact) 2010 (target) 2013 (target)

R&D / GDP 0.95% 1.40% 1.80%

BERD 0.37% 0.63% 0.90%

new products 4.2% 5.0% 6.0%

S&T graduates 5.1% 5.5% 6.0%

EU patent 18.9 24.0 28.0

early VC/GDP 0.004 0.005 0.006

Source: www.nkth.gov.hu


Regional Economics

Financing R+D by regions and sources

Source: Hungarian Statistical Ofiice


Regional Economics

R+D+I COMPETITION DECLINES FOR YEARS

Main reasons:

– extremly low R+D+I expenditures and staff,

– low participation of SMEs in R+D+I activities,

– extremly low level of MSc students in Sciences and PhD,

– networking problems.

Facing problems


Regional Economics

Innovation capacityR&D institutes in Northern Hungary

Number of R&D units, 2008


Regional Economics

Technology providers in Northern Hungary


Regional Economics

NORTHERN HUNGARY - SWOT

Strengths

Presence of higher education institutes.

The growth of university, college R&D potential, the creation of

knowledge centres, their increasing economic openness.

The region has important traditions in the field of machinery,

metallurgy (Miskolc, Salgótarján, Ózd) and chemistry

(Kazincbarcika, Tiszaújváros).

The strong representation of the technical culture, technical

qualification, their presence as an economic asset.

The growing presence of industrial parks in the region.

The number of foreign companies settling in the region and the

number of their employees is increasing. (E.g.: Bosch) some of which

has its production plant in the region.

The presence of integrator companies which wield international

leverage in the field of chemistry, machinery and vehicle assembly.

The strengthening of the initiatives which aim at elaborating

enterprise clusters, enterprise networks.

Good access to road and railroad links, endowance of info-

communication networks.

Weaknesses

Small number of entreprises with strong market position and

significant capital, the existing ones are concentrated in Miskolc,

Tiszaújváros, Eger, Kazincbarcika.

The SMEs lack capital, suffer from regular liquidity problems, their

market position, competitiveness , income-generating capacity is weak,

their level of cooperation is low.

The SMEs of the region lack capital , only a fraction of them is

able to export, subcontracting is of low level.

The number of innovative enterprises is small.

Low innovation culture, and risk-taking ability.

Lack of concentration in the R&D activity.

The centres of the disadvantaged microregions generally lack

industrial sites, incubation houses and counselling services which

incite the settling, operation, and assistance of enterprises.

The network of innovation transfer organisations is of low-

quality or missing, the link between the R&D institutions of the region

and the entreprises is insufficient.

The participation of potential innovation players in national and

international networks is trivial , the international relationship of the

enterprises is underdeveloped., the lack of innovative clusters.

The number of jobs employing professionals is low especially in

the middle-sized and small-sized towns which stimulates the

emigration of professionals.

Unemployment is high, its composition is unfavourable.


Regional Economics

Opportunities

The support of innovation and R&D activities remains an

important development priority at European and national level, the

innovation-based utilisation of the Structural Funds of the EU, the

announcement of new domestic call for proposals is to be expected in

the future.

The stimulation of international co-operation (especially regional).

The appraisal of the role of economic co-operations, transfer

organisations, the strengthening of the link between research bodies

and SMEs.

The appraisal of the role of economic co-operations, the

dynamisation of the links between the local economic players and the

existing scientific potential.

Demand for knowledge-centres.

The appearance of intervention-packages, call for proposals for

SMEs in the field of innovation.

Increasing utilisation of information as resources, demand for the

dissemination of results.

The strengthening of environmental-consciousness.

The improvement of innovation and entrepreneurial spirit.

Threats

Continuation of emigration and brain-drain.

The human resource potential of the region remains low.

The brain-drain of the neighbouring regions will strengthen.

Permanent unemployment and the correlated social problems will

remain.

Due to the unfavourable economic policy factors, the investment

propensity will decrease, which in turn has an adverse effect on job

creation.

The geographical concentration of population is strengthening, the

region’s economy lagging behind will increase.

The interregional economic linkages will not be built sufficiently.

The lack of own resources and the lack of sufficiently underpinned

projects may hinder the region’s proper utilisation of EU funds.

The weakening of cooperation capabilities is low.

The interregional economic linkages will not be built sufficiently.

The market opportunity of SMEs will dwindle due to the lack of

product development, the SMEs are characterised by a constant lack

of capital, especially in the case of funds which can be dedicated to

R&D.

The demand for innovation in the case of SMEs remains low.

NORTHERN HUNGARY - SWOT


Regional Economics

Background of the

NORRIS Project

• Starting point: 1st June 2005 ;

• Duration: 32 months;

• 10 members within the consortium;

• Co-financed by the EU;

• According to EU RIS Methodology;

• Technically supported by Innovating

Regions in Europe

• 3 workphases;

Unique,

interregional-bilateral form!

1. North Hungarian Regional Development Agency 2. Bay Zoltan Foundation for Applied Research

3. University of Miskolc 4. Borsod-Abaúj-Zemplén County Government

5. Hungarian Investment and Trade Development Agency

6. Košice Self-Governing Region

7. Technical University of Košice 8. Agency for the Support of Regional Development

9. JOANNEUM RESEARCH,

Institute of Technology and Regional Policy

10. La Fundacion de Automatización,

Robótica y Tecnologías de la Información y de la Fabricación


Regional Economics

• Inventory map about the actors interested in innovation;

• Comparative analysis of the results of previous projects and

planned policies;

• Background analyses (technological and regional strengths);

• European good practice review, comparative analysis with

the application of benchmarking tools;

• Evaluation and comparative analysis

• relevant programming documents

• on EU, national levels.

Results and outcomes


Regional Economics

SME support of the project


Regional Economics

ANALYSES OF REGIONAL SUPPLY AND DEMAND

Demand side

SMEs and

larger companies

Supply side

Technology Resource Cent.

Business Supporting Org.

Public Org.

• 500-500 SMEs and larger companies have been initiated;

• 15-15 Technology Centres and R&D Institutions have been asked.

• Both qualitative and quantitative methods have been applied;

• Depth-Interviews and Questionnaires have been used.


Regional Economics

Sectors with special importance

• Based on the preliminary analyses some region specific sectors were

selected according to their shares in the labour market and GVA;

• Common branches:

1. Machine industry;

2. Electrical and optical equipment;

3. Food industry;

4. Material production;

5. Environment industry.

• Added sectors on Hungarian side: Chemical and plastic industry,

Transport, telecommunication and Logistics, Community and public

services, Steel Industry.


Regional Economics

Results of the Analyses

Supply side (Technology Centres and Institutions):

• Technology Resource Centres form opinion on mechanism of regional

innovation funds;

• The geographical scope of the innovation activities on rather local and

national level than international;

• Nevertheless there are many existing relationships among the centres and

institutions;

• Demand for innovation and R&D is created only by a few companies in

the region;

• Most of the technology providers are not orientated to applied researches,

they remain on theoretical level;

• Education, open days and dissemination could be tools to motivate SMEs’

innovation activity.


Regional Economics

Supply side analysis

• Important branches:

– Mechanical engineering;

– Production of electric

and optical equipment;

– Food industry;

– Production of raw

material;

– Environment industry.

– Chemical- and plastic

industry;

– Metallurgy and metal

processing;

– Transportation and

warehousing

• List of the services which

can be provided:

– Development of R&D projects

– Quality and authentication

– Introduction of technology

– Technical consultation

– Support for the information

management

– Search for partners

– Support for the preparation of

business/product plan

– Support for making the

businesses international

– Etc.


Regional Economics

Results of the AnalysesDemand side (SMEs and large companies):

• Not enough well skilled manpower representing bottleneck for most of the

firms;

• SME’s claim for more technological development, assistance;

• SME’s restrained possibilities for financing innovation;

• Currently most of the companies are not taking part in any innovation

project;

• Large companies have their own

innovation strategies and plans,which are not harmonized

with any regional objective;

• Innovation „information flows”

do not reach the companies in every case;

• Lack of connection between any Slovakian

or Hungarian partners;

• Need of information on potential partners, consortiums or projects.


Regional Economics

Innovation Strategyfor Northern Hungary

VISION AND MISSION

To make the competitiveness grow in the economy’s most important sectors by concerted

development of the socio-economic centres of the region and its peripheries. It is

facilitated by the continuously and importantly developing infrastructure, and the

exploitation of the geographical and social capability assuring the environment which can

be lived, the adequate level quality of life and the openness towards other regions.

STRATEGIC AIM

With assigning and focusing on the research development activities’ and the innovative processes’ target system, the frame- and environmental condition system continuous

improvement, the knowledge an technology transfer conscious operation and development, promoting and developing the exploitation of the available synergies by the networking contacts in the region and the economic competitiveness of enterprises in the

region.


Regional Economics

Priorities

I. Innovative infrastructure,

development of the service and financing system

II. Development of the environmental contacts and

condition systems

III. Promoting the enterprises’ innovative- and

the income attractive ability, network condition, technology and knowledge

intensive development.


Regional Economics

Thank you for your kind attention!

Ildiko KNEISZ

E-mail: [email protected]

Web: www.uni-miskolc.hu

NORRIS PROJECT

www.norrisproject.eu

Daniel KUTTOR

[email protected]

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