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Support of the innovation developments of small and

medium-sized enterprises in South Transdanubia

Nikol HUBA-VARGASouth Transdanubian Regional Development

Agency (STRDA)12nd June, 2007

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Convergence objectiveRegions > 75% in EU25)

Index EU 25= 100

Quelle: Eurostat

Geographical Eligibility 2007-2013 Draft April 2005, GDP/head 2000-2001-2002

Objective RegionalCompetitiveness and EmploymentPhasing-in regions, "naturally" above 75%

Objective RegionalCompetitiveness and Employment

Convergence objectivestatistically affected regions

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EUR-27 = 1.92

< 0.45

0.8 – 1.16

1.16 – 1.88

>= 1.88

0.45 – 0.8

no data

Regional RTD expenditure in 2002 in % of GDP

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NUTS II. regions of Hungary

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SOUTH TRANSDANUBIA

14.169 km2

974.768 heads

69 head/km2

Counties:

• Baranya

• Somogy

• Tolna

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Number of European patents

per 1 million populations,

2000

(USA(USA 309.1)309.1)

GermanyGermany 229.3229.3

FinlandFinland 186.8186.8

AustriaAustria 158.9158.9

EU15EU15 126126

ItalyItaly 112.5112.5

SloveniaSlovenia 98.798.7

IrelandIreland 66.466.4

SpainSpain 46.846.8

HUNGARYHUNGARY 29.829.8

PolandPoland 26.426.4

Czech R.Czech R. 22.222.2

PortugalPortugal 8.88.8

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South Transdanubian Regional Development Agency (STRDA)

The STRDA is the working body of the South

Transdanubian Regional Development Council The most important activities of STRDA:• Management of application programmes • Regional planning• Project development• Economy development, support for the innovation• Organizing the international relations of the region • Organizing the inner relations of the region, regional

marketing

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Regional Innovation Strategy of South Regional Innovation Strategy of South TransdanubiaTransdanubia

RIS Project (2001-2004)RIS Project (2001-2004)

Development of a sector based innovation

strategy 2004-2010

Following the programming methodology of the

Structural Funds

Main programming document of South

Transdanubia – important part of the Regional

Operative Programme (2007-2013)

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Regional Innovation Agency and Network

3 year long project (2005-2007) supported by the National Innovation Fund

Aims: To support the implementation of the Regional

Innovation Strategy To operate a complex, easy-to-reach system of

services with guarantied quality, which supports the innovative development of the SME-s

Development of the innovation services

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Members of the Consortium:

Regional Development Agency (Co-ordinator)

Chamber of Commerce and Industry Pécs - Baranya County

Innovation and Technology Development Center

Entrepreneurs Centre of Somogy County Public Foundation

Kapos Innovation Transfer Center

University of Pécs

University of Kaposvár

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Functions of the Regional Innovation Agency:

Programming, implementation and monitoring of regional innovation development programmes, management of grant schemes

Project generation

Co-orditation of financial resources for innovation development (national and EU funds, establishment of innovation financing systems)

Establishment and operating of the Regional Innovation Database and Information System

Initiating international, interregional development projects

Co-ordination of the regional innovation system, networking

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Baross Grant Programme

First regional grant programme for innovation development

• Managed by RIA: programming, project development, regional decision about supported projects, managment of the grant scheme

• Supports the innovation projects of small and medium-sized enterprises

• SME programme for 2005: 535 million HUF (approximately 2 million EUR), 32 supported projects

• according to the sectoral priorities of the Regional Innovation Strategy (food industry, machine- and electronic industries, textile industry,health industry, evironmental industry)

• 2006: re-launch

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Establishment of Competence Centres Grant programme for development of the innovation services -

Implementation is in progress, call for proposals in July 2006.

• New methodology of project development: 4 projects elaborated in co-operation with the RIA and the RIEDC, key implementing organisation identified during the RIS, regularly consultation, ex-ante monitoring of the projects

• creation of sector-specific „bridge building” organisations in 4 sectors identified by the RIS (food industry, environmental industries, creative industries, fealth-tourism), new members of the RIA network

• on the basis of the university knowledge potential, strengthening the links between the business sector and the research and consultancy organisations

• Task of the competence centres: establishment and coordination of sectoral networks and clusters of sme-s, support of their innovation projects, create links to the knoweledge bases, provide innovation services

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Main outcomes33

30

10

16

0

5

10

15

20

25

30

35

Number of founded projects Signed contracts Modified contracts Number of reports come in

pie

ces

Adatsor1

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Business potential of R&D activities in the university environment and their transfer to SMEs in the Cross-

Border Region

The report consists of two parts. Part one includes the survey on the innovation activity and absorptive capacity of small and medium size business. Part two contains the survey about the University of Pécs innovation and research potential and its spillover perspective to local

businesses.

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The most important findings of the business survey

Technological innovation

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9 174

23

1120

6

5

7 17

14

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0-5 6-9 10-49 50-

Size

Th

e n

um

ber

of

pro

du

ct

an

d/o

r

pro

cess i

nn

ovati

on

s

0 1 2

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Different types of innovations and innovation intensity

8956 55

10889

142107

25

33 40

22

22

17

4045

79 62

3761

2939

37 29 40 30 258 10

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Type of innovation

Inte

nsi

ty o

f in

no

vati

on

a

Not Not to intensively Yes Very intensively

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Collaboration of the Hungarian firms

29

71107 120

13

27

3329

18

24

15 8

102

407 5

0%10%20%30%40%50%60%70%80%90%

100%

Hungarianbusinesses

Other countrybusinesses

Croatianbusinesses

Slovenianbusinesses

Collaboration with other businesses

Not planned Planned Rare collaboration Frequent collaboration

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Summary The innovation potential of South-Transdanubian SMEs was measured by relying on a recent version Oslo Manual based questionnaire that incorporates product, process, organizational and market innovations. Based on the analysis of the 201 questionnaires 30% of sample businesses did not innovate at all in the 2003-2005 time period. This finding is very similar to previous innovation research outcomes from Baranya county implying that there has been no improvement in the field of innovation in the South-Transdanubian region over the last seven years.

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STRDA, Regional Innovation Agency

Contact:

Nikol HUBA-VARGA

Tel: +36 -72-513-767

E-mail: nvarga@ddrft.hu

www.ddriu.hu

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Thank you for your attention!