1. Innovation activities in the West Pannon Region

2. Where is the West Pannon Region situated? Population: 1 million Area: 11 329 km2

3. The West Pannon Region is… Openborders 4 countries and speaks 7 languages Gateway to Europe60% of transport and goods leaves Hungary here Innovation paradox GDP is not everything - the number of researchers in the region is half of the national average PreparedHas wide experience in EU assisted program implementation

4. In the rank of GDP per capita West Pannonia is the second region in Hungary after the Central Hungarian Region (with Budapest) The industrial production tripled since 1991 The highest economic activity is in County Vas – 42,8% of actives within the total population, in County Zala it is the lowest with 38,5% The level of unemployment never exceeded 10%, however there are significant differences within the region Business landscape overview

5. Pros for the region geographic location – Austrian, Slovenian, Croation and Slovakian border quality of human resources high level of economic activity, low level of unemployment – app. 6% relatively balanced economic structure – employment: 4% in agriculture 43% in industry and 53% in service sector with respect to GDP after Budapest the most advanced region high ratio of foreign investment various touristic attractiveness is guaranteed by thermal water, natural environment, wine and gastronomy, cultural programs, traditional values

6. the modern, business-related vocational training suffers weaknesses lack of integration of education institutions on regional level despite of low unemployment, threat of companies leaving is valid though in Hungary GDP is high, it is far behind EU average low integration of multinationals into local economy R+D level is low, within Hungary as well average salary level is only 90% of national average, irrespective of high GDP differences within the region are significant, both economicly and socially Cons

7. role of agriculture further decreased, from 7% in the mid90s to 4% in 2002 in industry the companies based on cheap labour left or are leaving within the industry food and light industries were devaluated machinery industry gained share, especially in the car manufacturing County Győr-Moson-Sopron machinery parts and communication technical manufacturing is gtting strong in County Vas meat processing, dairy and beverage branches are significant in food industry chemical industry started based on CO2 resources in County Vas the carpenter branch is strong in wood processing textile industry is fragile as it is based on cheap labour force costs, suffering from decline Sectorial profile

8. Employment of branches 1990-2001

9. Pannon Business Initiative Objectives: development of industries with competitive advantage in the region into networks creation of new integration contacts definition of regional economic priorities for the distribution of government support compatibility of clusters operating in the region

10. Clusters in the region Pannon Automotive Cluster Pannon Thermal Bath and Spa Cluster Pannon Wood and Furniture Cluster Pannon Logistics Cluster Pannon Textile Manufacturing Cluster Pannon Mechatronics Cluster Pannon Local Products/Handcraft Cluster Pannon Renewable Energy Cluster

11. Pannon Automotive Cluster Established at the end of 2000 The first cluster ever established in Hungary! Main objectives: strengthening the effectiveness of cooperations speeding up the formation of new supplier relations supporting the launch of investments aiming to amend competitiveness, enhancing quality and the innovation activity of enterprises forming the regional commercial and service network

12. Pannon Automotive Cluster Activities: updating the databases of members forming and operating communication channels and platforms gauging clients demands and suppliers capacities training programmes representation of firms at international and national faires and exhibitions project partner search, promrotion of project possibilities project management Automotive Benchmarking Club www.autocluster.hu

13. Central East European concentration of OEMs (car and engine plants) 100 km 200 km 300 km 400 km By 2006 Approx. 4-5 million cars in CEE Approx. 900.000 cars within 120 km of Györ Approx. 3.5 million engines within 300 km of Györ Approx. 2.5 milion enignes within 160 km of Györ

14. Pannon Thermal Bath and Spa Cluster Established in the Summer of 2001 Main objectives: strengthening the effectiveness of the network activities of the branchs enterprises developing the region to an internationally important therapy, prevention and recreation centre increasing the number of overnight stays in the region strenghtening and heighthening health tourism forming new segments, new circles of guests forming a new, united image common product development, marketing, quality management – common brand

15. Pannon Thermal Bath and Spa Cluster Activities, services: development and offering of cluster services effective mediation of demands and capacities within the cluster forming common project proposals organising capital supports giving information continuously about the cluster training programmes PR and marketing activities ensuring international appearances forming new relations supporting researches

16. Pannon Wood and Furniture Cluster Established in the Summer of 2001 Main objectives: establishing a regionally integrated wood and furniture economic development model development of the cooperation network of SMEs processing the regions natural resources on a high level development of R&D, quality and marketing services

17. Pannon Wood and Furniture Cluster Activities, services: planning study tours, trainings and researches organising events, meetings, conferences taking part at professional faires and exhibitions common IT developments, information portals for SMEs help wood and furniture SMEs to be effective in costs and quality and to be competitive on the international market as well

18. Pannon Logistics Cluster Established in Autumn of 2005 Main objectives: integration of the most important acteurs of the regions logistics representing development plans and demands towards the region and the government improving domestic logistics services Activities, services: looking for calls for project proposals, raising common funds, generating projects organising trainings common regional planning and concepts common homepage forming international and domestic relations validating interests

19. Pannon Textile Manufacturing Cluster Established in Autumn of 2005 Main objective: improving the competitiveness of the branchs SMEs Activities, services: speeding up the flow of information improving professional development, organising trainings, conferences, experts meetings, study tours organising international and local partnerships market research organising international exhibitions helping the development of products and technologies development of Human Resources establishing a common image

20. Pannon Mechatronics Cluster Former Electronics Cluster (established in 2001) Main objectives: amending the regions R&D situation development of the intensity of knowledge and information sharing among economys acteurs strengthening network co-operations Activities, services: providing market information building contacts to potential buyers supporting technology development common innovation projects professional trainings management support common image

21. Pannon Local Products/Handcraft Cluster Established in Autumn 2005 Main objectives: collection and effective manufacturing of local products common image supporting common marketing increasing local employment Activities, services: activating sales channels providing information, common marketing organising trainings Product, quality and technology development

22. Pannon Renewable Energy Cluster Established in Autumn 2005 Activities, services: providing information continuously elaboration of sectorial recommendations representation of professional interests common image, market research, supporting to enter the market developing business relations organising study tours guidance elaboration of sectorial project plans innovative activities

23. Research and development expenses as per region and GDP in Hungary

24. Summary of the system COMPANIESCOMPANIES Innovation Fund National Research and Technology Office KPI (contracting authority) Local networks (RIAs, RUKCs) National government Call for tenders

25. Pannon Novum Regional Innovation Agency consortium West-Pannon Regional Development Agency Innonet Innovation and Technological Center Hungarian Academy of Sciences Centre for Regional Studies, West-Hungarian research Institute Vas County Chamber of Commerce and Industry Foundation for Enterprise Development of Zala County

26. Objectives General objectives Increase and renew the innovation capacity of the region Develop the regions competitiveness through R&D and innovation Support the innovative development of SMEs Specific objectives Build up the regions innovation environment Improve the regional skill base and technology development Create and increase the regions innovation services Improve the innovation co-operation network

27. Elements of innovation proposal – regional consultation Spreading technological and innovational skills Product- and service innovation Cluster-innovation Setting up new innovational services Spreading innovational culture Supporting R&D investments Innovation financing Gain innovational experiences abroad + central, national competitions

28. INNOREG Aim of the subsidy: Improve the innovation environment, spread knowledge and technology Product and service innovation Create innovation clusters, clusters network Foster co-operation within the region and interregional co-operation, network of innovation centers and research centers, network of innovational experts and consultants Improve innovation infrastructure; support purchasing of R&D tools Provide services related to innovation financing Total budget: 2005: 960MFt 3,7 mEUR 2006: 350MFt 1,35 mEUR Decision-making in the Region

29. INNO-CHECK Aim of the subsidy: supporting innovational initiatives of micro- and small enterprises and encouraging the innovation service supply and demand. Deadline: The tender is open until 28. September 2007. Subsidy: 2M-25M Ft can be claimed for one project. Self- contribution isnt necessary. Total budget for 3 years and to the 7 Regions: 5Mrd Ft 19 million EUR Decision-making in the Regions.

30. Thank you for your kind attention! Gábor Győrffy West Pannon Regional Development Agency 1040 Brussels, Avenue de Tervueren 84. Phone: +32 2 609 00 60 - Fax: +32 2 609 00 59 E-mail: brussels@westpa.hu www.westpa.hu