Challenges of Hungarian science policy: the evolution of a knowledge-based economy and society

Evolution of the new inter-disciplinary concept of the knowledge-driven economy is one of the most important changes in the last two decades. Its significance for future economic growth and development becomes even greater when applied to transition countries in central Europe.

The paper tries to measure the effect of new technologies on the recent development of Hungary. A special emphasis is placed on the ICT-oriented model of development and its specific requirements towards economic policy and the supply of labour in the country. The roles of different economic agents, companies and employees are defined in the context of the new labour division. On the other hand, an assessment is also made of the institutions which could best contribute to the effective implementation of the technological paradigm in Hungary. The latter discussion is mainly focused on Science Parks and Cooperative Research Centers.

Two main characteristics of the Hungarian economy are observed which show problematic resistance to the new technologies: First, the background and size of Hungarian companies does not allow them to participate in knowledge-based international co-operation networks which makes them search for niches still unaffected by ICT proliferation. Second, there are still industries where cheaper labour is a strictly preferred alternative to the expensive application of ICT.

As a result of the comprehensive institutional survey made in Hungary, the following propositions for the solution to the problem are presented:

• encouraging entrepreneurial activity in knowledge-based industries
• intensifying the knowledge flow from university to industry following the triple-helix relationship (university–industry–government)
• increasing the proportion of private funded R&D expenditures
• boosting knowledge-based regional development and specialisation.

Finally, the general conclusion is made that in order to stimulate companies' use of new technologies, the government needs to provide focused support only for the development of science parks whose value-added services could be of help for the improvement of the companies’ efficiency.