Unlocking Innovation Potential: An Insight from Northern Hungary

It is always interesting to examine how innovation potential and uptake are supported by ecosystem actors and how they relate to the economic and social performance of EU regions. According to the Regional Innovation Scoreboard 2021, the Northern Hungarian region is classified as a moderate innovator, with performance below the EU average. However, the region has shown some improvement in recent years, especially in the areas of human resources, linkages, and intellectual assets. EU inter-mobility, GDP, and innovation capacity of a region correlate well and are good indicators of the region's overall socioeconomic status and health.

The Northern Hungarian region had a GDP per capita (PPS) of €13,700 in 2017, which was 42% of the EU average and the lowest among the Hungarian regions. According to the Regional Innovation Patterns and the EU Regional Policy Reform: Towards Smart Innovation Policies, the Northern Hungarian region had an innovation capacity index of 0.31 in 2014, which was below the EU average of 0.51 and the Hungarian average of 0.41 while based on Eurostat, the region had a net migration rate of -1.9 per 1,000 inhabitants in 2019, which was the lowest among the Hungarian regions and below the EU average of 2.9. This indicates that the region is lagging behind in terms of economic development and wealth creation and needs to catch up with the rest of the EU. It needs to improve its innovation performance and output, it is not very attractive and inclusive and needs to retain and attract more talent and diversity.

Ecosystem actors, if collaborate strategically, and not on an individual level on an opportunistic basis, could drive the transition can contribute to innovation uptake and innovation capacity, but how?

Knowledge Sharing: Sharing best practices, lessons learned, and technical expertise and facilitating collaboration and information exchange among ecosystem members. Resource Mobilization: Providing funding, grants, or investment opportunities for innovation projects and offering access to physical infrastructure, facilities, and equipment. Capacity Building: Providing training, workshops, and educational programs to develop skills and capabilities and mentoring and coaching support to nurture talent and entrepreneurship. Networking and Partnerships: Facilitating connections and partnerships between industry, academia, and government and engaging with external stakeholders, including customers, suppliers, and research institutions. Regulatory Support: Advocating for supportive policies, regulations, and incentives for innovation and providing guidance and assistance with regulatory compliance and approvals. Market Access: Creating opportunities for showcasing and commercializing innovations and facilitating access to new markets, customers, and distribution channels. Risk Sharing: Collaborating on joint R&D projects or innovation consortia and sharing risks and rewards through strategic alliances and partnerships. Culture of Innovation: Fostering an environment that values creativity, experimentation, and continuous improvement and recognizing and rewarding innovation efforts and achievements. Infrastructure Development: Investing in physical infrastructure, such as technology parks, incubators, and innovation hubs and enhancing digital infrastructure and connectivity to support innovation-driven activities. Ecosystem Leadership: Providing vision, direction, and strategic guidance for ecosystem development and mobilizing stakeholders and resources to support collective innovation goals.

Concrete opportunities lie in the emergence of the region's Chemical and Automotive Industry, leveraging local expertise in engineering and manufacturing to attract foreign investment and stimulate export-oriented growth. The University of Miskolc, which is the largest and oldest university in the region, and has a strong focus on engineering, natural sciences, and economics. The university also hosts several research centers and institutes. Additionally equipped with a technology and knowledge transfer, innovation and entrepreneurship center, that offers office space, infrastructure, consultancy, training, and networking services for startups and SMEs in the region. The center also organizes events and programs.

The Tokaj Wine Region, which is a UNESCO World Heritage Site and one of the most famous wine regions in the world. The region has a long tradition of producing high-quality wines. The region also has rich raw materials potential with its rich and diverse industrial minerals sites that are currently valorized below their perceived potential. These examples show that the Northern Hungarian region has some assets and opportunities to foster innovation potential and uptake, but also faces some challenges and gaps, such as the low level of R&D expenditure, the lack of critical mass and diversity of actors, the weak linkages and cooperation among actors, and the low level of internationalization and visibility of the region.

There is a lot to do in terms of skills development as well, because skills play a pivotal role in enhancing the innovation capacity of a region. Human capital development is pivotal for innovation, as skilled individuals contribute to knowledge creation and transfer, entrepreneurship, and collaboration. Regions fostering these skills drive innovation by adapting ideas to local contexts and cultivating a culture of creativity. Collaboration and networking amplify innovation by facilitating idea-sharing and resource exchange. Moreover, skilled workforces enhance adaptability and resilience in evolving environments, crucial for continuous innovation. To harness future skills from innovation capacity, strategies like investing in education, promoting STEM, and supporting R&D are vital. Encouraging lifelong learning ensures a steady supply of skilled workers while fostering innovation ecosystems stimulate collaboration. By implementing these strategies, regions can sustain and advance innovation, ensuring long-term success.

Long-term perspectives as above resonate well with the objectives of the #CiRCLETECH project to create a CiRCLETECH HUB, we have just launched its regional development leg yesterday with LUT University and 荷兰代尔夫特理工大学 in cooperation with the North Hungarian #TerritorialInnovationPlatform by hoping the beginning of an impactful and strategic cooperation.

What are the good practices and examples to increase ecosystem cooperation, innovation uptake, - and potential in your region?

#CircularEconomy #FutureSkills #InnovationPotential #InnovationUptake #Sustainability #CiRCLETECH #GreenEnergyTransition #UrbanMining #WasteProcessing #CircularDesign #NorthHungaryManufacturing