North ern Hungary on the way of change…

1. Northern Hungary on the way of change… Dénes ANTAL Regional Development Agency of Northern Hungary

2. Northern Hungary

3. General aspects • consists of the countiesof Borsod-Abaúj-Zemplén, Heves and Nógrád • settlement network: smaller populations than the national average, with predominantly small villages in some areas • thethird most populousprovincial city, Miskolc, is located in this region • rich in natural resources and minerals the basis for the traditional heavy industry • now various industrial structures, and all branches of manufacturing are present in the region • chemical (2 biggest chemical conglomerates) • metallurgy and metal processing • mechanical engineering industries • electricity • food industries • - Underdeveloped transport infrastructure

4. General aspects • structural crisisof heavy industry • About one quarter of the country’s unemployed population is to be found heree • theactivity ratioremains below 50%, while the most recent figures suggest unemployment has fallen slightly, to 9.8% • Characterised by thedominance of SMEs. • Rich in natural attractions:highest mountains in Hungary, vineyards, wine production, national parks... • 150,000 hectares of fallow land • Educational/research institutions: • University of Miskolc (with approx. 20.000 students) • College of Róbert Károly (Agricultural College)

5. R&D Expenditure in percentage of GDP (2004)

6. Regional Innovation Agency of Northern Hungary • Consists of 5 consortium partners (NORDA, University of Miskolc, Bay Zoltán Institute of Applied Research, North Hungarian Chamber of Industry and Commerce, Innocenter Non-Profit Organisation) • Aims at giving an impetus to innovation by managing and coordinating Structural Funds • Its objectives include enhancing the innovation potential of the region • Conceives the innovation strategy of the region (national, transnational) • Defines the regional priorities of the National Innovation Fund • Takes part in the management of various Calls for Proposals in the field of innovation

7. Mid – Term Development Plan of the Northern Hungarian Region(2007-2013) Or Northern Hungary as a techno region

8. Priorities and related complex regional programmes I. Creating a Competitive Economy (Techno – Region) Programme II.Building Up a Regional Tourist Network, Together with the Region of Northern Great Plain III. Providing the Conditions of Quality Life and the Integrated Development of Linked Settlements

9. Creating Competitive Economy • (Techno – Region) Programme • Components: • I.1.Establishing integrated supply networks in the key – industries of the region • „Mecha – Tronics” (Mechanics + Electronics) • Chemical Industry • I.2. Creative industry • I.3. Introducing environmental industry • I.4. Developing a regional „Knowledge – based centre” • I.5. Establishing a regional logistics network system • I.6. Promoting business – aid services • Risk – capital programme • Business – angel services • Consultative network system

10. Creating Energy Clusters Across Europe (CENCE) (Dec. 2005-May 2008)

11. Project summary Activate cooperation between European Energy Clusters by establishing a cooperative learning platform that facilitates the promotion of entrepreneurial innovation. • Pointing out a new concept of clustering, building new cooperation relationships between the most promising and developed EU energy clusters. • LEARNING • NETWORKING • COOPERATION

12. Project partners • CLUSTER DE ENERGIA (Spain) • Environmental Cluster Greater Peterborough &East of England (UK) • OEC Eco-Energy Cluster Upper Austria (Austria) • NOEST Network Eco-Energy Styria (Austria) • Bayern Innovativ (Germany) • MERINOVA Technology Centre (Finland) • ZDE Institute for District Energy (Slovenia) • CPI Politecnico Innovazione (Italy) • Fundacion LABEIN Research Institute (Spain) • NORDA Regional Development Agency (Hungary)

13. The objectives of CENCE • fostering the cooperation among the participant Energy clusters to contribute to the creation of an EU Innovation Area. • Developing a new co-operative learning platform for exploiting synergies, exchanging experience and knowledge and building learning communities • Supporting networking and transfer of knowledge between participant energy clusters, enterprises, intermediate organisms and cluster organisations • Identify and analyse success factors and barriers to innovation int the EU Energy Clusters

14. The reasons for taking part in the project • Creating an Energy Cluster in Northern Hungary in accordance with the priorities of the Regional Development Plan for 2007-13 • Establishment of a Regional Energy Agency relying on the existing partners active in the field of energy, renewable sources of energy (e.g.: College of Agriculture in Gyöngyös, Bay Zoltán Institute for Applied Research) • Stimulating employment in depressed areas of the region • Promoting the use of renewable energy (esp. biomass) in the region

15. North Hungarian and Kosice Regional Innovation Strategy NORRIS (June 2005-June 2008)

16. „The Vision” • NORRIS aims to reformulate and strengthen the economic importance of the Kosice-Miskolc axis in this economic and geographic area of Europe by using innovation and technology as a means of breaking down the barriers. • This project represents a unique opportunity to test and implement the RIS process in a cross border environment.

17. Advantage from disadvantage?Characteristic Features • Similar Local Conditions • Strong economic, social and geographical links • Similar economic problems • Centre of Heavy Industry in the past • More companies broke down • Agriculture is less dominant • High unemployment (SK: 20%, HU: 11% - 2004) • Lack of new jobs • Brain-drain and migration of young population • Social problems • „Nuts 2 level” problems

18. The NORRIS consortium • North Hungarian Regional Develoment Agency (NORDA) Partners • Kosice Self-Governing Region • Agency for the Supportof Regional Development • University of Kosice • B-A-Z County Government • Bay Zoltan Foundation for Applied Research • University of Miskolc • ITDH Hungary and Slovakia • CARTIF, Castilla y Léon • Institute of Technology and Regional Policy

19. PURPOSE AND MAIN OBJECTIVES - • To foster regional and economic cohesion within and between the participating regions • To improve the regions’ competitiveness • To develop the absorption capacity of EU funds • To strengthen transnational and regional co-operation in the field of R&D and innovation

20. PURPOSE AND MAIN OBJECTIVES - • To create an enabling environment for existing SMEs and innovative start-ups, spin-offs, investors and R&D centres • To identify strategic key areas of innovation support activities and flagship projects • To transfer experience and knowledge from the supporting partner region and connect to the EU networks and programmes

21. Conclusion • Innovation is instrumental in closing the gap with other wealthier regions • The advantage of focusing on renewable energy resources is threefold: • Stimulates sectors with a high value-added • Highly beneficial for employment • Essential in striving to comply with international environmental standards

22. Thank you for your attention! Dénes ANTAL antal.denes@norda.hu