The state of research and development and the R&D expenditure-to-GDP ratio in Hungary

?Frequently asked questions:
Are there specific figures available on the state of research and development in Hungary?
Yes, there are. Hungary’s indicators in this field are continuously improving.

In respect of a given country or region, the key indicators of competitiveness, the quality of economic environment and the intense investment-friendliness of innovation are to be found among the data, facts and trends concerning the state of research and development and innovation. How has the number of researchers changed, have the funds spent on research and innovation increased, how intense is research and development activity at companies and businesses, and what are the apparent trends in this area. As we can establish based on the figures, Hungary is in the middle range in this regard by European comparison, but the current government’s goal is for Hungary to be among Europe’s major innovators by 2030.

In the spring of this year, the National Research, Development and Innovation Office published a detailed and easy-to-understand summary on the state of research and development and innovation in Hungary, and on Hungary's position among EU member states in terms of innovation performance.

How has the number of researchers changed in Hungary? What are the arenas of research and development?

Over the past 20 years, the focal point of research and development activity has shifted emphatically from research institutes and higher education institutions towards companies and enterprises. Today, 62% of researchers carry out their research and innovation activities within companies and enterprises.

How does the size of businesses correspond to the intensity of research and development in Hungary?

The lion's share of research and development activity is conducted at large corporations (with more than 250 employees), and the private sector employs nearly 60% of researchers. Although micro, small and medium-sized businesses have increased such activities, relative to staff numbers they have become involved in research and development only to a minor extent.

What percentage of GDP is spent on research and development in Hungary?

One of the key indicators of the intensity of research and development is the amount spent by organisations on R&D activity, typically expressed as a percentage of GDP. As the graph below shows, R&D spending as a percentage of GDP has been showing a continuously rising trend both in the short term and on a 20-year time-horizon, and in recent years this figure has evolved at around 1.4%.

Hungary’s R&D expenditures compared with the expenditures of European Union states

In European Union comparison, Sweden, Austria and Denmark are the innovation leaders, and with an intensity of 1.4% Hungary is only in the middle range. Hungary has undertaken to increase the intensity of research and development to 1.8 percent by 2020, representing an intensity increase of close to 30%.

Hungary's innovation performance on the European Innovation Scoreboard

Based on the 2018 European Innovation Scoreboard, Hungary is a moderate innovator, ranked 21st among EU countries. The scoreboard – a composite relative indicator established on the basis of multiple parameters – clearly shows the innovation performance and relative situation of European Union states.

What are the most innovative sectors in Hungary?

Based on 2017 statistical data, the pharmaceutical industry is the most innovative sector in Hungary, followed by the information, communication and crude oil sectors. Large corporations tend to dominate in all three sectors, meaning that the ratio of small and medium-sized businesses in the most innovative sectors is low.

Source of data: National Research, Development and Innovation Office