1 Application of a Method for Measuring and Developing the Innovation Potential of Small Regions in Hungary Miskolc – Lillafüred György Kocziszky – István Bakos

2 Contents 1.Justification of the investigation 2.Objective and method 3.Results 3.1 Institutional potential 3.2 Human potential 3.3 Local potential 3.4 Economic potential 4. Recommendations

3 1. Justification of the innovation potential investigation ● The gap in economy/society keeps increasing between the region and other parts of the country ● Lasting high rate of unemployment ● Decreasing number of population, ageing ● Migration of qualified labour

4 2. Method of the innovation potential investigation innovative environment Input indicators i n n o v a t i o n output indocators

5 Institutional backgroundHuman potential Number of R + D sites Number of organisations involved in R + D activities Ratio of R + D expenditure Application activity Vision / strategy Number of those employed in R + D sites population density innovation age ratio average education higher education qualification foreign language proficiency migration indicator ratio of those employed Local potentialEconomic potential human infrastructure facilities (10) technical infrastructure facilities (6) number of enterprises in operation enterprise density average gold crown value Company profit tax number of guest nights welfare indicator (personal income tax) utilisation of accomodation capacity 2. Indicators of innovation potential investigation at small region level

6 3.2 Human resources potential: Innovation age ratio Meagre Low Average (national) High Outstanding Legend Source: using KSH (CTO) data (2001.) Innovation potential of the region of Northern Hungary

7 3.2 Human resources potential: Average education Meagre Low Average (national) High Outstanding Legend Source: using KSH (CSO) data (2001.) Innovation potential of the region of Northern Hungary

8 3.3 Local potential: Commercial facilities Meagre Low Average (national) High Outstanding Legend Source: using KSH (CSO) data (2001.) Innovation potential of the region of Northern Hungary

9 3.3 Local potential: Sewage facilities Meagre Low Average (national) High Outdstanding Legend Source: using KSH (CSO) data (2001.) Innovation potential of the region of Northern Hungary

Economic potential: Enterprise density Meagre Low Average (national) High Outstanding Legend Source: using KSH (CSO) data (2001.) Innovation potential of the region of Northern Hungary

11 Innovation potential of the region of Northern Hungary Innovation potential of small regions in the region of Northern Hungary based on factor analysis Meagre Low Average (national) Outstanding Legend

12 4. Recommendations No.ObjectiveMeasures recommended 4.1.Supporting the establishment of innovative environment Supporting the development of creativity in the education system Establishing an Innovation Price Setting up an inno-barometer 4.2.Supporting the emergence of innovative networks Supporting the development of technology parks and incubator houses Developing guarantee-funds-like mechanisms Interdisciplinary education and vocational training, innovation- management courses Specialist initiatives to support starting high-tech companies 4.3.Promoting the inflow of knowledge and technology Developing a system of support to enable companies to gain access to results of state-run research institutes, supporting pre-competitive research for the industrial implementation of the results improving the conditions for establishing industrial clusters Providing opportunities for developing production engineering FP6 4.4.Developing practice supporting innovation Preparing system and innovation analyses to facilitate comparison with EU Innovation Surveys Evaluation of tools and structures supporting innovation, measuring their efficiency, organising finacial or business forums to discuss innovation issues, technology preview to monitor technological trends, etc. 4.5.Monitoring regional innovation potential Regular measurement of local innovation potential based on a database, SWOT analysis for planning innovation strategies Innovation potential of the region of Northern Hungary

13 Institutions of Education Enterprise Development Organisations Trade and Professional Interest Groups R+D Institutions Finance Institutions Regional Development Organisations Production and Service Companies 4.2 Supporting the emergence of innovative networks Innovation potential of the region of Northern Hungary