Hungary - European Semester Coutry Report
The European Semester starts with the Commission's Annual Growth Survey (AGS), which outlines general economic priorities for the EU. In 2015, the focus of the AGS was on boosting investment, accelerating structural reforms and pursuing responsible growth-friendly fiscal consolidation. In line with those priorities, in February the Commission publishes a series of Country Reports presenting an asssessment of economic and social developments and challenges in different areas, including research and innovation.
The consolidation of the Hungarian research and innovation system is still an ongoing process. This is due to the annual reorganisation of major innovation policy-making bodies and the research, development and innovation funding structure. Public R&D intensity in Hungary has decreased over recent years; this level is not only well below EU average, but also lower than in most of the Central and Eastern European countries.
This development threatens to undermine the already weak supply of human resources for science and technology, the quality of science base and contributes to a brain drain. The innovation capacity of SMEs has not improved, despite the implementation of several support schemes. Increase in business R&D investment has been driven by foreign direct investment.