open innovation approaches in hungary vilmos németh

Open Innovation Approaches in

Hungary

Vilmos Németh National Innovation Office

ENoLL Event Budapest, 16 May, 2011

www.nih.gov.hu | 2. May 24, 2011

Challenges at the Beginning of the 21th Century

Economic crisis

Shortage of energy resources

Sustainable environment

Aging population

Globalization Natural

disasters

Unemployment Climate change


EU 2020 Strategy

A European strategy for smart, sustainable and inclusive growth •  3 Priorities

•  5 Targets

•  7 Flagship initiatives


EU 2020 sets out a vision of Europe's social market economy for the 21st century. Three mutually reinforcing priorities: 1. Smart growth: developing an economy based on

knowledge and innovation. 2. Sustainable growth: promoting a more resource efficient, greener and more competitive economy. 3.  Inclusive growth: fostering a high-employment economy

delivering social and territorial cohesion.

EU 2020 Priorities


By 2020

1. 75 % employment rate (% of population aged 20-64 years) 2. 3% investment in R&D (% of EU’s GDP). and an innovation indicator 3. “20/20/20” climate/energy targets met (incl. 30% emissions reduction if conditions are right) 4. < 10% early school leavers & min. 40% hold tertiary degree 5. 20 million less people should be at risk of poverty

EU 2020 Targets


EU 2020 Strategy Main pillars and flagship initiatives

Smart growth

Sustainable growth

Inclusive growth

„Innovation Union” Improve of the conditions of R&D

„Youth on the move” Enhance the performance of the education

„A Digital Agenda for Europe” Development of Internet access

„Resource efficient Europe” Energy efficiency and low carbon economy

„Industrial policy for the globalisation era” Improvement of the business environment

„An Agenda for new skills and jobs” Modernising labour market, Life-long learning

„European Platform against Poverty” Ensure economic, social and territorial cohesion


National Reform Program – Main Targets

The national targets linked to the Europe 2020 Strategy’s headline goals:

• increasing the employment rate of the population aged 20-64 to 75 % • increasing the expenditures on research and development to 1.8 % of GDP • increasing the share of renewable energy sources in the final energy consumption to 14.6 % • increasing the share of those having completed tertiary level education or equivalent to 30.3 % within the population aged 30-34 • reducing the share of people living in poverty or social exclusion by 5 %


National Reform Program – R&D&I Objectives

Main goal: Hungary’s innovation performance should reach the EU average by the end of the decade

Specific oobjectives: •  Renewal and implementation of the R&D&I strategy •  Introduction of indirect supports: tax allowance, pre-commercial procurement, YIC •  Operation of a unified R&D&I monitoring and evaluation system •  Science and Technology Observatory will be established •  Transformation of the National Innovation Office by the end of 2011


New R&D&I Governance System in Hungary

Kormány

Nemzeti Kutatási, Innovációs és Tudománypolitikai Tanács(stratégiai döntéshozó testület)

MTA NEFMI KIM NGMNFM

OTKAMRK

(Magyar Rektori

Konferencia)

NIH(Nemzeti

Innovációs Hivatal)

MSZH(Magyar

Szabadalmi Hivatal)

Innovációs alapot

működtető IH

MISZ(Magyar Innovációs

Szövetség)

Government

HASc

NGO’s and other civil organisations

National Council for Research, Innovation and Science Policy

Ministry for

National Economy

Ministry for National

Development

Ministry for

National Resources

Ministry for Public

Admin. and Law

Enforcement

National Office for IP (HPO)

National Scientific

Research Fund (OTKA)

National Develop-

ment Agency

National Innovation

Office

Hungarian Rectors

Conference


Innovation performances in EU


R&D Expenditure

The gross domestic R&D expenditure (private and public sector expenditure) was 299 billion Ft in 2009, which is 1.15% of the GDP

–  Lisbon target: 3 % of GDP –  EU average: 1,85% of GDP

Gross Domestic R&D Expenditure as percent of GDP

1,00 0,97 1,00

1,15

1,00 0,97 1,00

1,15

0,951,01

0,950,89

0,94

0,82

0,680,74 0,700,67

0,75

1,081,00

0,93 0,951,01

0,950,89

0,94

0,82

0,680,74 0,700,67

0,75

1,081,00

0,93

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009


Sources of R&D Expenditures

0%

20%

40%

60%

80%

100%

1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Externalresources

Other National

State Budget

Enterprises


Innovation Indecies–Hungary vs. EU-27 (2010)

Source: Innovation Union Scoreboard 2010

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

Medium-high & high-techmanufacturing export

International scientific co-publications

Youth aged 20-24 upper secondarylevel education

Non-R&D innovation expenditures

Employment in knowledge-intensiveactivities

SMEs innovating in-houseBusiness R&D/GDP

PCT patent applications

Community designs

Venture capital/GDP

Non-EU doctorate students

EU-27

HU/EU-27


Accredited Innov. clusters (12)

CRC (19)

RUKC (19)

Key technologies innovation clusters (7)

Knowledge Centres and Clusters in Hungary


Features of R&D&I Sector in Hungary

•  Contradictory picture: •  World level scientific research and results in

some areas •  Low level of academia-industry cooperation •  Few innovative products and companies that are

successful globally •  Small number of legally protected intellectual

property (patents) •  The number of spin-off companies set up by

universities and research institutions is small •  The institutional system and culture of

exploitation of research results are missing in the Hungarian R&D sphere


Requirements of the Efficient Innovation

How to boost innovation in a small, open economy with some big multinational companies and with a high number of SMEs, but with low innovation activity?

Hungary needs a new business model of exploitation of R&D results, a new innovation

paradigm! To reach faster innovation we need cooperative environments where the stakeholders (university, R&D institution, company) do research and innovation activity on the base of mutual interests.


Open Innovation

Open Innovation, also known as external or networked innovation represents a shift from the traditional model where 100 % of a company’s innovation originates from within, to a more open model where both internal and external ideas are combined to create a more Collaborative advantage. (Henry Chesborough 2003) Opean innovation is focused on:

•  Uncovering new ideas •  Reducing risks •  Increasing speed •  Leveraging scarce resources •  More market-focused academic research


The Opean Innovation Paradigm


•  Cooperative Research Centers (CRC) ‒ University-Industry R&D cooperation with business oriented focus

•  University Knowledge Centers (UKC) ‒ Scientific Center of Excellence with industry collaboration

•  National Technology Platforms (NTP) ‒ Cooperation in developing long-term, joint R&D&I strategy

•  Innovation Clusters ‒ Networked cooperation of institutions and companies based on common business interest in a particular industry or area

New Innovation Approaches in Hungary


Living Labs – User driven open innovation ecosystem Hungarian ENoLL members:

•  Automotive Living Lab in Györ •  Homokháti Rural Living Laboratory •  Creative Knowledge Centre Living Lab

Other Living Labs: •  Living Lab Budapest •  Wellfare Living Lab Nagykovácsi •  T-City Szolnok

Living Labs in Hungary


Waves of ENoLL


Aim: To discuss the role and the value of ENoLL and User Driven Open Innovation in the context of the societal challenges of our time as defined in the EU 2020 Strategy.

Launch of the 5th Wave of Living Labs!

ENoLL Event Budapest


Thank you for your attention!

open innovation approaches in hungary vilmos németh

Technology

priorities eu

innovation indecieshungary

innovation indicator3

innovation performances

gdp eu average

innovation union scoreboard

national targets

conditions of rd youth