Fostering continuous research

and technology application

1

Prepared by

PP8 University of Debrecen

October 2012

Revised version

May 2013

3.3.1 Regional Plan

of Implementation Actions

Hungary – Észak-Alföld region

3.3.1 Regional plan

of implementation actions

Észak-Alföld region (HU)

2

The overall goal of the Central Europe Programme 2007-

2013 is to “strengthen territorial cohesion, promote inter-

nal integration and enhance the competitiveness of Central

Europe” (Central Europe Operational Programme, p. 36). In

particular, Facilitating Innovation across Central Europe is

one of the four thematic priorities defined in order to im-

prove cohesion, integration and competitiveness.

Coherently with the programme, FOstering contin-

uous Research and Technology application let to the coop-

eration between partners from Germany, Hungary, Italy,

Slovenia and Slovakia and is focused on investigating and

promoting existing and future instruments and capabilities

for open innovation. Indeed, “FORT general objectives are

to contribute to: (1) strengthen the transnational and re-

gional innovation system; (2) rise innovation activity in

SMEs; (3) enhance networking among organizations for in-

novation support to achieve a higher number of joint R&D

projects; (4) build innovation culture by increasing the level

of competences of technology transfer and cluster manag-

ers” (FORT Final Application Form, p. 4).

Within this general framework, the aim of WP3 is to Build an Innova-

tion Culture, by programming several activities on the basis of a pre-

liminary report - Joint report on professional basis and relevant policies

(output 3.1.1). The report -highlights the level and contents of innova-

tion culture already existing in the project-involved regions. This output

has been grounded mainly on “the review of studies, analysis, relevant

EU policies and good practices” (FORT Final Application Form, p. 40) and, by the collection of infor-

mation coming from 51 policies and programs selected across the partners’ regions. The review has

highlighted some core points translated in specific policy recommendations aimed at building and

strengthening innovation culture.

Joint Recommendation of Measures (output 3.2.1) has been outlined re-

calling the main points stressed by the Joint Report. As the report, also

recommendations have transnational features which are strictly aimed

to “build innovation culture, including the identification of regions’ pri-

orities” (FORT Final Application Form, p. 41), and they are addressed to

regional and national authorities and intermediary institutions.

to develop lines of research

and innovation policies that

are consistent with the

vocation of the territory

The issue regarding the impact of the market on the research pro-

grams trajectory triggered the academic debate on the opportunity of

a close interaction between universities and the entrepreneurial world.

Territorial specializations can be a very good starting point or basis of

research programs. Hence, technology transfer managers must possess

a good knowledge of the regional production structure and articula-

tion of networks.

3.1.1 Joint report

on professional basis

and relevant policies December 2011

3.2.1 Joint

recommendation

of measures March 2012

3.3.1 Regional plan

of implementation actions

Észak-Alföld region (HU)

3

to increase enterprises’

involvement in the projects’

design and implementation

stages

Within projects, the creation of a partnership, particularly between

public and private sectors, is usually one of the most important success

factors of the project. The roadmap for reaching this goal depends on

the industrial structure and the "history" of the institution of reference.

The professional profile of a technology transfer manager implies that

it would be preferable that such a subject possesses a certain level of

loyalty (or authority) on behalf of enterprises in order to increase his

power of persuasion and make enterprises more active participants

from the very early stages of design and implementation of projects. A

second possibility is that such professional profile cultivates a system

of relationships and networks with trade associations, representing

SMEs interests (or intermediate institutions), which may play an im-

portant role in order to bring enterprises closer to the world of re-

search.

to increase the involvement

of small enterprises

SMEs are a pillar in several European economies and after Lisbon they

have become a specific target of European Policy. Sometimes, SMEs

encounter more difficulties than other ones in the field of innovation

due to their organizational structure, financial endowment and invest-

ment strategies. For this reasons, policy makers have to provide their

effort in order to involve SMEs in innovation and technology transfer

programs as much as possible.

to strengthen the

competitiveness of

enterprises

The emergence of transversal innovation creates some complications

in reaching competitiveness. Today, knowledge about potential tech-

nologies relating to different sectors should be considerably more ex-

tensive and diversified than before. As a consequence, on one side, in-

novating also implies a need for training even for people with industry-

specific skills and, on the other one, matching different technological

paths often requires a deep organizational change.

to increase the managerial

capacity of universities and

regional entities, and to

increase the involvement of

local players’ networks

One of the major problems highlighted in the literature on technology

transfer is known as the shortage of managerial ability of many Euro-

pean universities. This shortage acquires critical connotations in the

case of the triple helix model where the coordination for the transfer of

knowledge is much more complex and structured compared to the

classic technology transfer model.

to invest on human

resources and on social

capital

By co-design, co-implementation of projects, besides the achievement

of the project’s goals, an institutional learning process is enacted.

Methodologies and languages are improved, and people’s knowledge

and skills are increased. Institutional networking overlaps with personal

networking and the two strengthen each other.

the strategic time frame

and the solving of

the co-financing trade-off

Innovation policies and programs with a long-term implementation

profile undoubtedly favor the creation and training of technology

transfer managers by the economies of scale of knowledge, which

greatly increase the social capital of these professionals’ profiles. In-

stead, it is more difficult to determine an optimum rate of co-funding

that a project should receive, because a too high share of co-financing

may stimulate a participation aimed to gain access to resources and

very low shares, instead, could have a weak motivational impact. For

this reason, it is very important paying attention to and strengthening

evaluations about the financial dimension in policy design.

3.3.1 Regional plan

of implementation actions

Észak-Alföld region (HU)

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According to the two strategic implementation principles of Central Europe Programme - “promoting

availability of relevant knowledge to partnership” and “focusing on outputs, results and actual imple-

mentation” (Central Europe Operational Programme, pp. 41-42) - FORT requires to make recommen-

dation of measures that indicate the content of specific actions at regional level in order to switch the

project’ statements and results in practical outcomes stressing “the importance of innovation in organ-

izational culture, positive effects of innovation culture, effects of positive attitude towards change and

new technologies” (FORT Final Application Form, p. 40).

The Regional Plan of implementation actions (output 3.3.1) has to be based both on recommendation

and regional characteristics and actions have to be target to “SMEs, public research organizations

(higher education institutions, research centers) and representatives of innovation systems (ministries,

regional development agencies, intermediary structures such as technology transfer and business sup-

port centers, etc.)” (FORT Final Application Form, p.4). Nonetheless, partners regions sometimes differ

by several features, as the industrial background and tradition, the experience about innovation pro-

grams, the development state of a technology transfer network or, finally, the economic, social and

political characteristics of the existing innovation culture. Of course, this is true also in FORT. For this

reason, FORT PPs has been encouraged to choose among measures and to design recommendation-

related actions that they consider suitable for their region.

Innovation in Hungary

In the context of the EU, Hungary is among moderate innovators (see Innovation Union Scoreboard,

Figure 10). The sectors that have joined global value chains – such as the pharmaceutical industry, the

ICT sector and vehicle manufacturing – as well as the research-developers that have international ties

all greatly contribute to the performance of the national innovation system. On the other hand, the

majority of Hungarian enterprises fall far behind those in more developed EU member states in terms

of research and development and innovation performance.

Compared to other EU states, the performance of Hungary is below average primarily in the figures

describing innovation cooperation activities, especially in the area of links between research institu-

tions and enterprises. An outstandingly weak point is the cooperation of small and medium enterprises

with national and foreign large companies and knowledge bases.

Source: European Innovation Scoreboard, 2011

Hungary

Észak -Alföld region

3.3.1 Regional plan

of implementation actions

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However, the foreign relations of public research organizations, primarily in the area of research, are

relatively strong. This is partly due to the fact that when it comes to R&D&I, scientific criteria are much

more significant than the criteria of practical, industrial exploitation. The fact that the environment that

would support knowledge- and technology-intensive start-up businesses (such as incubation) is weak

and undeveloped is an untapped opportunity.

Compared to the rest of the European Union, Hungary lacks the seed capital that would help start-up

and spin-off companies, and as a result spin-off processes often get stuck at an initial phase. Similarly,

the mechanisms that boost technology transfer are not efficient enough. In the Hungarian medium

sized company sector there is little market-oriented research and development, and the R&D&I de-

mand is also insignificant. Innovative small companies (which are also low in number) do not possess

the organizational basis that would consistently implement the strategy of innovation development,

and also missing are the financial and human resources as well as the necessary business culture.

The social consultation draft of the National Strategy for Research, Development and Innovation 2020

is built on three main pillars: the creation of knowledge, the use of knowledge, and between these two:

the transfer of knowledge. Regarding the transfer of knowledge, the document states that there is a

great need for stronger cooperation and knowledge transfer between public academic and higher ed-

ucation institutions and the business sector, as this is the key for the true incorporation of new

knowledge into enterprises, ensuring that novelty does indeed reach consumers.

The strategy’s analysis of the current situation in the area of knowledge transfer activities highlights

both strengths and weaknesses. One such strength is the growing intensity of university-business co-

operation in certain segments. The weaknesses lie in the fact that research does not put a great

enough emphasis on the needs of the market and of society; technology transfer process are not effi-

cient; and spin-off processes are also hindered by a variety of institutional and attitude-related factors.

In light of the above, one potential opportunity is the emergence of “entrepreneurial universities” that

reflect economic-social needs more effectively, while another is strengthening the dialogue between

universities and enterprises, but these can only be truly realized if the appropriate institutional back-

ground is available, together with a stable and supportive legal environment.

The strategy also revealed the deficiencies of knowledge and technology transfer: if the institutions

and organizations of knowledge transfer are weak, i.e., they are not able to mediate the knowledge

created during research and development in a way that is useful for the economy, it could lead to such

a narrow cross-section that in itself would be able to hinder the creation of greater added value and in

general the country’s economic growth.

One of the most important aims of the strategy is to strengthen and develop technology transfer by

supporting the operation of scientific and technology transfer organizations and offices.

Innovation characteristics of Észak-Alföld region

At the age of knowledge-based society, innovation capabilities – as a quality indicator of economic

performance – contribute greatly to a given area’s competitiveness. The county within the Észak-Alföld

region that has the greatest innovation potential is Hajdú-Bihar. It is one of the leading areas of Hun-

gary whether we look at the number of research institutions, the level of R&D spending or the relative

ratio of R&D employees. For the most part, the county’s outstanding R&D capacities are due to the

role of Debrecen, where the research institutions that define the county’s R&D activities are located,

3.3.1 Regional plan

of implementation actions

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including the University of Debrecen, the Institute for Nuclear Research of the Hungarian Academy of

Sciences, the pharmaceutical companies TEVA and Richter Gedeon, as well as the research and devel-

opment centers of National Instruments.

Compared to the national average, R&D expenditure is high in the Észak-Alföld region (in 2001 it

amounted to 26 billion HUF). This is explained by the fact that although GDP is low in the national

context, the R&D expenditures of the corporate sector have doubled since 2005 in Hajdú-Bihar county.

Still, this is far below the 3% of the GDP that was set as a goal in the Lisbon Strategy to be reached by

2010. One of the reasons for this failure is that while in developed countries, especially in the United

States and Japan, the greater part of development costs are covered by the business sector, in Hunga-

ry the ratio is reversed. Only over the last few years has the situation begun to improve, i.e., companies

now contribute to R&D activities to an ever greater extent, and the Észak-Alföld region is leading in

this respect.

Regional cooperation between the actors of the academic sphere and business life

Both in 2007 and 2009, a survey was conducted by INNOVA Regional Innovation Agency among the

enterprises of the region, inquiring among others about whether the enterprises had any connections

to institutions of higher education, and if yes, in what aspect: what services these connections entailed.

The answer that stood out pointed to the University of Debrecen: 30% of respondents reported that

they used some of the university’s services. The majority of these services were in the area of laborato-

ry tests, while the second most popular service was research cooperation. The third most common ser-

vice, but far less common than the previous two, was in the area of educational and grant project co-

operation. A special form of cooperation between the university and enterprises is the foundation of

clusters. Thanks to the change of attitude in economic development, various clusters have appeared in

Hajdú-Bihar county, which bring together economic actors as a developing organization. Mostly their

aim is to bring its members closer and coordinate them, as well as to create a critical mass in the given

sectors with a view to increasing innovation capabilities.

Innovative clusters in the Észak-Alföld region:

- Pharmapolis Debrecen Innovative Pharmaceutical Cluster

- Pharmapolis Innovative Functional Food Cluster

- Thermal-Health Industrial Cluster

- Prizmatech Instrument Manufacturer and Developer Cluster of Debrecen

- Silicon Field Regional IT Cluster

- IT Cluster Észak-Alföld

- LENERG Building-Energy Cluster

- Thermal Energy Utilizing and Innovation Cluster

The University of Debrecen is the only “University of National Excellence” in the region, one of the four

such institutions in the whole country. Its activities are efficient and stable, representing significant

professional values in a wide range of sciences both in terms of education and research. In 2011, the

university was active in nearly 230 research areas, raising 4.5 billion HUF worth of revenues from the

market and grants. A significant proportion of these are on an overall institutional level, not connected

to individual faculties. The university’s activities concerning basic scientific research and market-

oriented research and development cover a great number of disciplines, but it is most significant in the

case of the Faculty of Medicine, the Faculty of Science and Technology and the Faculty of Agricultural

and Food Sciences and Environmental Management.

3.3.1 Regional plan

of implementation actions

Észak-Alföld region (HU)

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Overall it can be stated that the region has a stable R&D base with an academic background, which

can and should be built on. This base is of outstanding quality, and the high level of research has

brought the region to the same level (if not higher) as the region of Central Hungary.

Compared to other Hungarian regions, the situation of Észak-Alföld regarding its national R&D&I and

academic position is significantly better than in the area of economic development, which suggests a

promising vision for the future of the region. The greatest challenge for the upcoming period is to find

ways to transfer this nationally and internationally competitive educational and research potential into

the region’s economy, thus boosting the economic performance of the both region and its counties.

Regional plan of implementation actions

The regional implementation actions are defined based on the Joint Recommendation of Measures and

the national, regional characteristics of innovation. The actions focus on supporting the cooperation

between SMEs, public research organizations, representatives of innovation systems and intermediary

organizations such as technology transfer centers. The actions have a special emphasis on strengthen-

ing the role of the higher education institutions and public research organizations in the innovation

process in order to become “entrepreneurial universities” that reflect economic-social needs more ef-

fectively.

Timing: October, 2013 Related measure - to increase the managerial capacity of universities and regional

entities, and to increase the involvement of local players’ net-

works

Content Recommendation to public higher educational institutions for

managing technology transfer activities

Technology transfer is a relatively new activity at universities and

PROs in Hungary. An important general goal is strengthening the

dialogue between universities and enterprises; however these can

only be truly realized if the appropriate institutional background

is available, together with a stable and supportive legal environ-

ment. The tool developed in Action 1 will give practical guidelines

to universities and PROs on how to manage technology transfer

activities in order to exploit the business value of research results

thus contributing to the economic performance of the region and

the country.

Target Universities, PROs, intermediary organizations (e.g. technology

transfer centers)

ACTION 1

3.3.1 Regional plan

of implementation actions

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Timing: September, 2013 Related measure - to strengthen the competitiveness of enterprises

Content Regional Call for Innovative Ideas and Research Projects

Target

The call is for project ideas, new solutions or technologies cur-

rently in development that could be taken one step further with

the help of the awarded business plan and business reviews.

The main purpose of the call is to identify the projects which can

be developed further by creating spin-off or start-up companies.

Public research organizations from the region are eligible to ap-

ply.

PROs, individual researchers

Timing: December, 2013 Related measure - to increase the managerial capacity of universities and regional

entities, and to increase the involvement of local players’ net-

works

- to develop lines of research and innovation policies that are

consistent with the vocation of the territory

Content Recommendation on how to measure technology transfer activi-

ties

There is a lack of tools for quantitative measuring outputs of

technology transfer processes. For this purpose, a recommenda-

tion will be developed and distributed to relevant entities, with an

intention to foster and facilitate the production of annual reports

on the activity of technology transfer of PROs and other relevant

entities in Hungary. The recommendation will focus on measuring

the institutional aspects of technology transfer process and will

serve as a base for the comparison of the performance of tech-

nology transfer offices operating in Hungary.

Target Universities, PROs, policymakers

Timing: October, 2013 Related measure - to develop lines of research and innovation policies that are

consistent with the vocation of the territory

- to increase enterprises’ involvement in the projects’ design and

implementation stages

Content Handbook for collaborative research and knowledge transfer be-

ACTION 2

ACTION 3

ACTION 4

3.3.1 Regional plan

of implementation actions

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tween science and industry

Society benefits when the fruits of research are exploited for so-

cial and economic purposes. Well-managed collaboration be-

tween public and private sector bodies benefits everyone. Taking

a strategic approach to collaboration enables the development of

radically new products and services and better innovation, there-

by creating more value from the investments made and greater

effectiveness as well as efficiency. Furthermore, by establishing

better foundations for successful research partnerships and

knowledge exchange, it reinforces the value of the PRO within so-

ciety, thereby enhancing the prospect for continued top-quality

research and education.

Achieving durable partnerships requires considerable mutual un-

derstanding, respect and a great deal of professionalism and hard

work. The process begins by assessing the part that collaborative

research and knowledge transfer activities make in meeting a

Company’s or PRO’s strategic objectives and continues by con-

sidering how to implement these activities in ways that will be ef-

fective in meeting this strategy and also be considered equitable

by the desired partners.

The handbook describes a guideline designed to help universities

and PROs improve the effectiveness of their collaborative re-

search activities and knowledge exchange.

Target Universities, PROs, SMEs, individual researchers, intermediary or-

ganizations (e.g. technology transfer centers)

Timing: January, 2013 Related measure - to increase the managerial capacity of universities and regional

entities, and to increase the involvement of local players’ net-

works

- to invest on human resources and on social capital

Content Establishment a national network for Hungarian TTOs

(Higher Education Forum for Technology Transfer)

Human capacity and professional knowledge is essential in manag-

ing technology transfer activities. A national network will be estab-

lished in order to support cooperation between technology trans-

fer managers in Hungary. The platform will provide opportunity

for institutions and individuals to share experiences and jointly de-

velop new recommendations and policies. In Action 6 the opera-

tion model and the constitution of the network will be developed

by University of Debrecen and circulated among TTOs in Hungary.

Once it is accepted, the network will be established with the partic-

ipation of several technology transfer offices from Hungary.

ACTION 5

3.3.1 Regional plan

of implementation actions

Észak-Alföld region (HU)

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Target Universities, PROs, technology transfer centers, technology transfer

managers (individuals), policymakers

Timing: October, 2013 Related measure - to increase the managerial capacity of universities and regional en-

tities, and to increase the involvement of local players’ networks

- to develop lines of research and innovation policies that are con-

sistent with the vocation of the territory

Content Development of model IP policy for universities and PROs

More and more universities and PROs recognize the need for encour-

aging the practical application and economic use of the results of re-

search carried out at the institutions for the benefit of the general pub-

lic, therefore there is an urgent need for them to adopt an update poli-

cy on intellectual property.

An IP policy relates to the ownership, protection and commercial ex-

ploitation of intellectual property created by researchers in the course

of their duties or activities at the institutions. It sets out the rules of the

institute for cooperation with industrial and business organizations and

provides guidelines on the sharing of the economic benefits arising

from the commercialization of intellectual property.

A good IP policy aims to promote scientific investigation and research;

provide legal certainty in research activities and technology-based rela-

tionships with third parties; set out procedures on the identification,

ownership, protection and commercialization of Intellectual Property;

ensure the timely and efficient protection and management of Intellec-

tual Property; facilitate the recording, monitoring and maintenance of

the institute’s Intellectual Property portfolio; ensure that economic

benefits arising from the commercialization of Intellectual Property are

distributed in a fair and equitable manner that recognizes the contribu-

tions of the Inventors and the Institute as well as those of as any other

stakeholders; enhance the reputation of the Institute as an academic

research institution and a member of society as well as the reputation

of the Researchers through bringing the research results to public use

and benefit.

There are several stakeholders in the process of commercialization of

innovations, inventions and research findings. Each of these stakehold-

ers contributes in one way or another in the process of generation and

commercialization of innovations, inventions and research findings. The

stakeholders have their interests and expectations, which in most cases

are in conflict with each other.

The model IP policy will offer a structure and serve as a recommenda-

tion to satisfy the need to take into account the interests of all stake-

ACTION 6

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holders, thus ensure effective and efficient commercialization of inno-

vations, inventions and research findings.

Target Universities, PROs, technology transfer centers

3.3.1 Regional plan

of implementation actions

Észak-Alföld region (HU)

12

References

Central Europe Cooperating for success. European Territorial Cooperation 2007-2013.

Operational Programme. Approved by the European Commission on 20.11.2012 (available at

www.central2013.eu/document-center/programme-documents/ )

FORT - FOstering continuous Research and Technology application. Final Application Form

FORT - FOstering continuous Research and Technology application. Joint Report on Professional

basis and relevant policies. December 2012 (www.project-fort.com/images/stories/FORT_15-12-

2012-WP3-%20Final.pdf )

FORT FOstering continuous Research and Technology application. Joint Recommendation of

Measures. March 2012 (www.project-

fort.com/images/stories/FORT_WP3_Policy_recommendations.pdf

Responsible Partnering - Joining Forces in a World of Open Innovation: Guidelines for Collaborative

Research and Knowledge Transfer between Science and Industry. October, 2009 ( European Univer-

sity Association, European Association of Research and Technology Organizations, European In-

dustrial Research Management Association, ProTon Europe) (http://www.eua.be/eua-work-and-

policy-area/research-and-innovation/Responsible-Partnering-Initiative.aspx)

National Strategy for Research, Development and Innovation 2020 Hungary (November, 2012)

S3 strategy of Region Északalföld (March, 2013) (Prepared by INNOVA Regional Innovation Agency)