Innovation potential analysis the Nord Hungarian Region

Abstract

Innovation potential plays an increasingly important role in the competitiveness of small regions, counties and regions. It means that the global economic position of a country is determined not only by the innovations present in the products and services developed in laboratories and research centres and successfully marketed, but also by every novel and
successfully implemented idea that positions a region in the national economy of the country. On the other hand, as it is proven by international practice, only that region can be successful whose presence is not linked to an original or a chance action, but is a process consciously performed by figures constantly in action and organised into an institutionalised network. One of
the major tasks of our model program designed to elaborate a model for innovation-based economic development in small regions is to provide a guideline for working out small region innovation strategies in Hungary. The European Union is also making great efforts to strengthen innovation skills. The European Commission published its Green Paper on Innovation in 1995
and the Commission Staff Working Paper, 2001 Innovation Scoreboard in 2001. Innovation strengthening programs are operating currently in Europe in the form of Framework Programs 5 and 6, in which Hungary is also involved.
EUROSTAT databases are published regularly and the indicators in them can be used in attempts to measure and compare the development levels of innovation. These data (e.g. Statistics on Innovation in Europe), however, are of national levels and do not quantify the innovation potential of individual regions, although innovation is to be examined at regional level, for it may play a major role in bridging the gap by the backward regions. In more developed market economies, competition and market regulating mechanisms play a greater role in strengthening and spreading innovation, but in backward region centrally controlled intervention is required. This will require the development of indicators and measurement and comparison methodology, which are suitable for quantifying the innovation potential also at lower levels of statistics and planning (NUTS IV-V). Based on them, realistic development strategies and programs can be planned and supported in order to close the gaps
and decrease disparities.

That is why it is necessary to conduct the survey at settlement and small region level and to utilise them. In the East German counties with the support of the Leader program several projects are being developed with the objective of measuring and developing the innovation potential of rural regions. Their measurement methodology is similar to what we have in mind.
We have contacted those involved in the projects. General objectives of small region innovation development
We wish to provide a model that will help small regions being formed in Hungary to work out an innovation strategy. The model proposed is significantly based on the methodology of regional innovation strategies (RIS) developed in the regions of the European Union, but it substantially relies on Hungarian innovation research practice and on the experience of the Institute of the Economics of Europe of the University of Miskolc in strategy development. The model takes into account the differences in the innovation infrastructure, institutional system and instruments of the innovation policy between Hungary and the EU member countries. It also takes into consideration the difficulties small regions in a weak position nowadays experience in
enforcing their interests as well as the low amount of resources that can be used for technology and research and development.
The strategic management of bottom-up initiatives can achieve a significant improvement in the condition of systems of innovation at the national level as well. Our objective is for small regions to develop their innovation capacities, for the different forms of co-operation between businesses, the scientific and technology sphere to develop and for successful developers to be
rewarded for their achievement. The elaboration of the measurement and development strategy of small region innovation
potential is a process that integrates all those involved in the research and technology development, supports them in thinking and acting collectively and in co-operating in order to improve the efficiency of innovation and to enhance the competitiveness and welfare of small regions.
Concrete objectives of the project are:
• Elaborating an independent, small region innovation strategy covering the complete statistical area and based on the local conditions and potentials and prepared with the involvement of local and external experts.
• Creating connections between the small region strategies of a region, consciously taking advantage of effects strengthening each other.
• Preparing innovation managers at small region level for performing their functions.
• Elaborating and implementing a solution which will be of model value at national level; which may contribute to shaping the image of the region positively and to strengthening the “knowledge-centred innovation regional image”.
• Preparing a manual for “small region innovation planning, managing and monitoring”, which will be suitable for successful application in the small regions of all regions, i.e. may contribute to building an innovation network.
• Comparing the innovation maps of the small regions of a given region (in harmony with the EU practice) and preparing projects for strengthening innovation.
• Elaborating local projects that can be connected to national and international (e.g. projects supported by the EU) projects. This will achieve continuity and a possibility for supplementary financing.

The process of performing the task
The task will be performed in seven steps:
• The first step will determine the innovation potentials of the statistical areas of the region in accordance with EU standards (in accordance with the EUROSTAT measuring and quantification system).
• The second step will use the figures for a comparison that will position the small regions of the region at national and international levels.
• The third step will prepare the SWOT analyses for the “innovation small regions” for all the statistical areas of the region.
• The fourth step will compile the R&D future image for each small region with the involvement of local and external experts.
• The fifth step will elaborate small region level projects.
• The sixth step will formulate recommendations.
• The seventh step is continuous monitoring.