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Study on Innovative Potential of Central Transdanubia Study of the innovative potential of Region of Central Transdanubia Study of the innovative potential of Region of Central Deliverable: Transdanubia Work Package: 3 Situation and Best Practice Analysis 3.1 Preparation of studies on the innovative potential of Activity: FIDIBE partners regions WP Responsible Centre for Research and Technology Hellas (CERTH) partner Version: Final Date: 10/2009 Type: Report Responsible Mid-Pannon Regional Development Company Partner: Ákos Szépvölgyi, External Expert Authors: Székesfehérvár, October 2009 1 „This project is funded by the European Union and co-funded by the Hungarian Government in the framework of the South East Europe Transnational Cooperation Programme” CONTENT ABSTRACT ................................................................................................................................................. 3 I. EXECUTIVE SUMMARY ................................................................................................................. 4 II. REPORT ON REGIONAL SITUATION ........................................................................................... 8 II.1. INTRODUCTION ............................................................................................................................................ 8 II.2. SPECIFIC CHARACTERISTICS OF THE REGION ............................................................................................... 9 II.2.1. Geopolitical environment, location in the European space, the special features of internal spatial structure ......................................................................................................................................................... 9 II.2.2. The Region’s social characteristics .................................................................................................. 12 II.2.3. Economic background ....................................................................................................................... 15 B Economic performance .................................................................................................................................. 15 C Foreign capital ............................................................................................................................................... 18 II.2.4. R&D situation ................................................................................................................................... 20 A Higher education ................................................................................................................................................. 20 B Research and development .................................................................................................................................. 24 II.3. SWOT ANALYSIS OF THE REGION ............................................................................................................. 26 III. MAIN ACTORS OF INNOVATION ........................................................................................... 29 III.1. GENERAL SITUATION OF THE BUSINESS SECTOR ....................................................................................... 29 III.1.1. The fundamental characteristics of enterprises ............................................................................... 29 III.1.2. The characteristics of innovative enterprises .................................................................................. 32 III.1.3. Experiences and behaviours of enterprises ..................................................................................... 39 III.2. MAIN ACTORS CONTRIBUTING TO THE DEVELOPMENT OF INNOVATIVE CAPABILITY ................................. 51 III.2.1. Industrial parks ................................................................................................................................ 51 III.2.2. Incubator houses, clusters ............................................................................................................... 53 III.2.3. The special forms of innovative cooperation ................................................................................... 57 III.3. ENTREPRENEURSHIP POLICIES AND INITIATIVES ....................................................................................... 60 II.3.1. Regional Innovation Strategy ............................................................................................................ 60 II.3.2. The situation of start-up/new-born innovative enterprises ............................................................... 62 II.3.3. Supporting programmes .................................................................................................................... 64 II.3.4. Experiences on related domestic and EU funding resources ............................................................ 68 II.3.5. Current funding resources ................................................................................................................ 74 II.3.6. Available and implemented EU programmes in the Region.............................................................. 82 III.4. SWOT ANALYSIS OF THE BUSINESS SECTOR ............................................................................................. 86 IV. SUGGESTIONS AND PROPOSALS ........................................................................................... 88 V. MAIN CONCLUSIONS .................................................................................................................... 91 BIBLIOGRAPHY ...................................................................................................................................... 92 2 „This project is funded by the European Union and co-funded by the Hungarian Government in the framework of the South East Europe Transnational Cooperation Programme” ABSTRACT The Study of the innovative potential of Region of Central Transdanubia is reviewing the current innovation potential of the Region as the 3.1. activity of the FIDIBE project. The study summarizes the structure forming economic and social background, the situation of business sector, the main actors of innovation development, and the entrepreneur policies and initiatives. By the review of the current situation the study identify the fields of further development and make suggestions for the development of the regional innovation system. By doing so, the study supports further activities of the FIDIBE project, and using common methods of investigation it gives the opportunity to compare the results with other investigated regions. 3 „This project is funded by the European Union and co-funded by the Hungarian Government in the framework of the South East Europe Transnational Cooperation Programme” I. EXECUTIVE SUMMARY The Study of the innovative potential of Region of Central Transdanubia is reviewing the current innovation potential of the Region as the 3.1. activity of the FIDIBE project. The study summarizes the structure forming economic and social background, the situation of business sector, the main actors of innovation development, and the entrepreneur policies and initiatives. By the review of the current situation the study identify the fields of further development and make suggestions for the development of the regional innovation system. By doing so, the study supports further activities of the FIDIBE project, and using common methods of investigation it gives the opportunity to compare the results with other investigated regions. This executive summary highlights the most important results of the study. Overall situation of the region After the political transformation structural changes of fundamental importance underwent in Central- Transdanubia. One of the most important elements of these changes was that the economy has lost its agricultural-industrial character and by the end of the 1990s industry or more precisely processing industry had become the dominating sector of the region’s economy. Another important feature of these changes is that the typically quantitative changes of the 1990s (a rapid growth in the number of enterprises and in the number of low-skilled labour) were followed by qualitative changes emerging in the early 21th century. This means among others the emergence of new manufacturing and complementary industries in the region enabling the modernization of economic activities and the innovation-oriented development to undergo in the region’s economy. Industrial restructuring at the late 1990s has definitely resulted in the dominance of machine industry. The number of businesses engaged in machine industry is approximately 900 in the region. Of them the activities of big firms in vehicle industry are considered the most important. It is important that in the late 1980s Central-Transdanubia Region just like Hungary’s other regions had to face rapid and comprehensive socio-economic changes. The market and sales relations of the region’s economy having mostly been based on trading with socialist countries collapsed and the region’s economic performance and industrial production volume dropped significantly. Now we can take it for granted that the region not only survived the changes but with West-Transdanubia and with the agglomeration zone of Budapest it has developed into Hungary’s one of the most dynamically developing area. Since the early 90s its economic role by far has been surpassing the position it should fill in by its territorial and population size. The success
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