There is an enormous willingness from state policy makers to boost research and development activity in various countries of the Centrope region. The question is does this work?
Facts: in Hungary the R&D spending is app. 1% of the GPD. 90% of the spending comes from the public sector. The number of scientific researchers is extremely low, and brain drain has accelerated in recent years. The percentage of small- and medium sized enterprises is low, meanwhile their research budget is also insignificant. The percentage of graduates in real sciences is less than 8% of total graduates.
The State is dedicated to increasing its spending towards research and development, however, public spending has not grown since the large communications – R&D spending is still about 1%.
Conclusion: Due to structural challenges of the Hungarian economy, it is no solution to flood money into a non-operating system. What is vital is to have a long term vision and strategy, and to commit ourselves to that. It is the message that should be shared by all. No secrets, no wonders, no short term solutions. Consistent building, from the bottom – starting from the education. To train the trainers, first.
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I’m very interested in your claim that brain drain has accelerated. Do you mean this has happened in Hungary, or do you see evidence that this is happening in other CENTROPE countries?
Have you seen any studies, statistics or news articles that discuss the recent brain drain? It would be useful if you could provide a link.
Attached document is Hungarian, unfortunatelly. The branches, where it is accelerating most - doctors and engineers.
80% of the medical unvierity graduates is willing to work abroad.
Balázs
http://www.szochalo.hu/allando-rovatok/egal/hircentrum/article/114776/3240/
Governments tend to crowd out the private sector by pouring money to every possible source that could ‘help’ bring new growth companies and innovations. However, while they do it they also by their decisions kill the private sector silently by turning it into a bureacratic apparatus that is no more a ripe playfield for new innovations. More importantly they can ‘invest’ only by raising taxes or inflating the money supply. This results less private investors and less available venture capital for new companies.
For example, see page 17 http://www.scribd.com/doc/4008519/Can-Government-Increase-Social-Welfare-by-its-Involvement-with-Private-Market-
That’s a fairly accurate summary of what I’ve seen here in Central Europe, LL. Thanks for your contribution!
I had a look at your blog and found a number of good observations about entrepreneurship and business life. I also left a comment on this thread.
In general, we prefer that people commenting to nowEurope use their real names. Do you mind doing that in future, LL?
Hi Steven,
Thanks for your comments and compliments!
Sorry - I have decided to keep myself anonymous with Life Lessons -blog. I also write with my real name but this is a side project…
BTW, I replied to you comment on my blog