Hungary's R&D system will be reconstructed in 2012

2011-12-27



The institutional and financing system of the R&D in Hungary will be reconstructed in 2012. The aim is to increase the funds spent on R&D in Hungary as ratio of the GDP, from 1.14% to 1.8% by 2020 (EU average is currently 1.9%), said Zoltan Csefalvay, the secretary of state for economic strategy, Ministry of National Economy.
The innovation base fund will operate as a closed fund of HUF 46bn (€153.3m) from 1 January 2012. HUF 32bn (€106.7m) of the total amount are commitments (payments for successful tenders of previous years) and approximately HUF 13.5bn (€45m) will be available as free resources which can be obtained via tenders.
From 2012, not only companies that do not have R&D activities will have to pay into the innovation base fund, but it will be also obligatory for every middle- and large-sized company. However, payments will still be deductible from corporate income tax.