HUF 112 billion (USD 428 million) was invested in research and development in 2016 in Hungary, only around two-thirds of the public funding used for the same goals in 2015, reports 444.hu.
The roughly 30 percent drop is significant because such funds were consistently growing in recent years, peaking in 2015 when HUF 162 billion (USD 620 million) in public funding was spent on innovation. The 2016 numbers, on the other hand, show that less public funding was made available than in 2009.
The Central Statistical Office (KSH) told 444.hu that their statistics only indicate the public funding used for research and development, but not all the public funds available. However, it is very unlikely that the companies would use significantly less money than what is available to them.
Although research and development spending increased by 3.5 percent in 2016 among private companies, this could not offset the sector’s lack of state funding, which resulted in a 9 percent overall decrease. It is also worth noting that the largest contributors were foreign automotive companies with Hungarian operations, and a couple of IT companies.