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Hungary

Following the severe 2008 recession, Hungary’s economy has expanded strongly, based on export recovery and macroeconomic stimulus. However, Hungary’s income per capita remains among the lowest in the OECD area. This partly reflects a low level of productivity (productivity growth has decelerated since the crisis) and weak business investment in capital and human resources.
While growing in recent years, R&D intensity in Hungary, at 1.37% of GDP in 2014 (1), is still significantly below the OECD average, due to a lack of both private and public investment. Hungary has a strong industrial sector. However, business innovation capacities are mostly concentrated in foreign-owned companies and some large domestic companies (7). Public investment in research displays 33% of GERD (comparable to other European countries) (5a), and the national priorities are strongly influenced by EU programmes, especially structural funds.
The Government is committed to strengthen the research and higher education system by building a strategic framework and implementing reforms. In June 2013, the government adopted the National Research and Development and Innovation Strategy (2013-20). This Strategy aims to stimulate STI demand, establish an efficient support and funding system, and develop an ecosystem for start-ups.
Given the importance of EU programmes in Hungary, the National Smart Specialisation Strategy and all documents related to structural and social funds also have a key structuring effect on STI activities. The 2014 Higher Education Strategy also sets ambitious targets in terms of improving teaching and learning, developing word-class research, and enhancing higher education’s contribution to innovation and economic development.
Hot Issues
Strengthening the public research system
STIO Questionnaire Responses
Improving the education system (in general or focusing on tertiary education)
STIO Questionnaire Responses
Targeting innovative entrepreneurship and SMEs
STIO Questionnaire Responses
Selected Highlights
New challenges
STIO Questionnaire Responses
STI policy governance
STIO Questionnaire Responses
ICT and Internet infrastructures
STIO Questionnaire Responses
Technology transfers and commercialisation
STIO Questionnaire Responses
Globalisation
STIO Questionnaire Responses
Relevant Indicators

- Gross domestic expenditure on R&D
- Business enterprise expenditure on R&D
- Higher education expenditure on R&D
- Government intramural expenditure on R&D
- Public sector expenditure on R&D, financed by industry
- Government budget outlays for R&D
- ICT investments
- Tertiary education expenditure
- Employment in S&T occupations
- Internet users
Related Country Reports

- Hungary (Financing SMEs and Entrepreneurs 2016: An OECD Scoreboard), 2016
- Hungary: Snétberger Music Talent Centre (The Missing Entrepreneurs 2015: Policies for Self-employment and Entrepreneurship), 2015
- Kiútprogram, Hungary (Inclusive Business Creation: Good Practice Compendium), 2016
- Hungary (SMEs, Entrepreneurship and Innovation), 2010
- OECD Reviews of Innovation Policy: Hungary, 2008
Related STI Outlook Resources

Prior STIO Country Profiles
External Links
