In recent years, the Hungarian R&I system has undergone major changes and reforms. More competition and transparency are matched with a progressively-increased focus on scientific excellence. The National Research, Development and Innovation Office stimulates the funding of international networking, building consortium partnerships and strengthening international relations.
Budapest is an innovation hotspot: American-based Cloudera, Hortonworks, and the Estonian company, Transferwise have, recently, opened development centers in Budapest. Among others, Siemens, and BlackRock (the world’s largest asset manager), have established innovation centers.
According to several recently-published articles, Budapest is the city best-suited to startups. Among other advantages, co-working spaces and marketing and tech-related events help the local startup community to flourish.
A European Private Equity & Venture Capital Association’s report places Hungary as the 3rd main destination for private equity financing in the CEE region, in 2015, with 10% of total value. Also, in 2015, Hungary continued to be the most active venture market in the CEE because of the significant growth in both the numbers and values of investments.
Hungary is well-integrated into international knowledge networks, as confirmed by the high number of scientific publications, patents, and products achieved, with international co-operation, in the defense, the aerospace and mobile industries, to name just a few. Moreover, a state-of-the-art datacenter hosts an extension of CERN's Tier-0 infrastructure and plays a key role in LHC data processing and in the search for the Higgs boson.
Audi's Complete Vehicle Development supports the Professorship for Development endowment, Bosch will establish a new logistics center as a strategic hub in the CEE, and GE will establish one of its six, global, digital hubs, in Budapest, with an investment of USD 29 million.
Local companies also play an important role in R&I activity: NNG, LogMeIn, Prezi, Ustream, and AImotive (which develops artificial intelligence for self-driving cars), these companies were all founded in Hungary.