In the period of 2007-2013, thanks to a continuous increase in business R&D expenditures, overall Hungarian R&D intensity showed a significant growth with a compound annual growth of 6.5% and reached a peak of 1.41% in 2013. However, this trend reversed in 2014 with a decrease down to 1.38%.
Important bottlenecks remain in the Hungarian Research and Innovation (R&I) system including the instability of the public R&I funding, the ineffective public support to SMEs as well as skills shortages. However the establishment of the recent institutional framework can bring stability and create a more stable R&I system.
While foreign owned business enterprises continue to drive progress towards the Hungarian R&D intensity target, low and declining expenditure on the public research system put at risk the sustainability of this trend. The decreasing trend in public R&D expenditure undermines the capacity of the public science base in general and of the Higher education sector in particular to play the role it normally should in providing both skilled human resources and high quality research which constitute the basis for increased cooperation with the business sector.