Hungary has excellent waterway connections, as the Danube crosses
through the whole country from north to south. The Danube-Rhine-Main canal in Europe links the North Sea and the Black Sea: several scheduled block train lines connect Hungary with the seaports of Hamburg, Bremerhaven, Rotterdam, and Antwerp on the North Sea, and with Koper and Trieste on the Adriatic. The Adriatic seaports also offer alternative shipping routes from Asia. Lead times from these ports are within 16-36 hours.
Overview about the incentives in Hungary
One of the competitive advantages Hungary has compared to other countries in the region is the Government’s strong commitment to streamlining business processes and to increase the competitiveness of both SMEs and large enterprises through a wide range of available incentives. Both refundable and nonrefundable incentives are available for investors coming to or expanding
in Hungary. The main types of incentives related to investments are cash subsidies (either from the Hungarian Government or from EU Funds), tax incentives, low-interest loans, or land available for free or at reduced prices. 2014 is a year of change in terms of incentives for the whole European Union and Hungary as well: new regulations and new funds will be available for the period of 2014- 2020. As the Hungarian regulations on incentive opportunities are in accordance with EU state aid rules, significant changes are expected, along with state aid modernization initiated by the European Commission for the coming period.
R&D&I in focus
he Hungarian Government continuously emphasizes the importance of domestic R&D&I improvement in order to reach the European levels. As a result of the latest developments, the European Innovation Scoreboard assesses the Budapest area as being on European standard level in terms of innovation capacity, although there is room for further improvement in all other regions of the country. In general, a positive trend can be observed in total R&D expenditure; corporate R&D resources are growing rapidly and now exceed public expenditure. In 2012 HUF 336 billion was spent on R&D&I in Hungary, which is 1.2% of GDP. The National R&D&I Strategy published in 2013 aims at signifi cantly higher innovation expenditure for the upcoming periods, 1.8% of GDP by 2020 and 3% by 2030.
Among the aims of the Strategy by 2020:
• More R&D innovation centers joining the world’s innovation elite
• Establishing or strengthening global corporate R&D centers through
• Growth-oriented R&D-focused SME’s to fi nd their global market
• Promote innovative start-up companies
As proof of the development the number of R&D centers has been increased in recent years. Between 2006 and 2012, there was about 19% growth, which translates into 574 newly established R&D centres. Although only 29% of Hungarian businesses have a centre dedicated to R&D or technology (compared with 42% internationally), they concentrate on research partnerships, with over 73% having an academic R&D partner (university or public research centre). Hungarian Government has been advocating a strengthening of cooperation between research-centers with multinational background and the domestic universities, as well as SME’s engaging in R&D. In order to preserve the prominent position of multinational companies’ Hungarian R&D centers in international competition, the availability of highly qualifi ed human resources is guaranteed. For this purpose, the Hungarian education system ensures high-quality education and open cooperation and partnership between companies and universities.
Hungary aims to exploit the available resources as much as possible in order to hit the EU average in terms of R&D investment. The Government intends to provide the most extensive opportunities to improve companies’ R&D-related activities. As Zoltán Cséfalvay, State Secretary at the Ministry for National Economy stated “a development period is coming for Hungary with regard to the R&D sector; the Government intends to spend about 10% of its EU Funds on R&D approximately HUF 700 billion from the EU’s 2014-2020 programming period.” Beyond EU Funds, grants are also available from the national budget, either in the form of cash subsidy or tax incentive.
Source: Investing Guide Hungary 2014