Hungarian policy instruments for supporting SME and cluster internationalization Katalin Szilágyi International relations expert Ministry for National Economy Budapest, 21 November 2016
Content: Reasons to support international activities of SMEs Governmental actions supporting international activities of SMEs Calls for proposals supporting SME/ cluster internationalization within the EDIOP Further developments focusing to SME/ cluster internationalisation
Main governmental actions to support international activities of SMEs Long history of non- refundable grants 2007-2013- Economic Development Operational Programme (ERDF) 2012-13 Trade development programme (national sources) 2014-2020- Economic Development and Innovation Operational Programme (ERDF) Refundable funding opportunities - EXIM Bank Direct export pre-financing, Investment loans for export purpose; Export promotion credit program etc. Guarantee programmes Dedicated institutions for assisting SMEs Network of Hungarian National Trading House (36) assist SMEs to enter foreign market Hungarian Investment Promotion Agency (HIPA) - attracting FDI
Economic Development and Innovation OP - Priorities 1. SME 1582 M EUR 2. R+I 1688 M EUR 3. ICT 455 M EUR 4. Energy 226 M EUR 5. and 6. Employment and training 2150 M EUR 7.Tourism 361 M EUR Capacity building Competitive Employment R&I ICT sector programmes Modern business infrastructure infrastructure and capacity Digital Energy Trainee Entrepreneurship economy efficiency and programmes Business R&I renewable Clustering, Digital Strategic R&I energy Flexibility at access to catching-up work foreign market cooperation Broadband Training Preservation of natural and cultural heritage 8. 8. Pénzügyi Financial eszközök Instruments 729,7 2352 Mrd M FtEUR
EDIOP-1.3.1-15 Supporting market access of SMEs Aim of the call Eligible applicants Amount of subsidy Intensity rate Supported activities International market access of enterprises. Increase the number of SMEs with international partners and contacts. SMEs 4.800 64.000 EUR Max. 50% (Depending on the project) Participation on international exhibitions and fairs Organizing foreign product sales presentations Support of market access Development of information technology Consultation Fee of market research Fee of acquisition, validation and protection of immaterial goods and property rights Fee of innovation consultation and supporting service
EDIOP-1.3.1-15 Supporting market access of SMEs Obligations Maintenance of work places Assignment of foreign trade responsible person Market research Website in foreign language One new created workplace if the support amount above HUF 20 million (in case of second application ) Target markets During one project, participation on more fairs and in more countries is eligible. Regarding the destinations, no limitations or differences are applied. Special advantages for Accredited Cluster members: Preference during the project selection phase
EDIOP-1.3.2-15 Development of professional cluster manager organizations Aim of the call Supporting clusters with stable track record Improving the quality of services provided by cluster management Support of international activities of the cluster/ cluster members. Eligible applicants Amount of subsidy Companies managing Accredited Clusters (34) 16 129 161 290 EUR At least 40% of the total budget Intensity rate 75% (in case of wages 50%) Supported activities ICT development Cluster management services related to international market access Acquisition of licences and databases Training (for: CMO and members) Wage of the cluster manager(s)
Main aim of the currently available cluster related call for proposals support of international market access Presence of the cluster on international fairs, workshops, B2B meetings, project preparation workshop together with the involved cluster members Organisation of international workshops and conferences in Hungary for the joint representation of the cluster International market research Application for international cluster benchmarking titles of ESCA Joint marketing actions, cluster branding for international market access: o Marketing actions targeted to foreign markets o Implementation of marketing tools on foreign languages (graphics, design, implementation) o Renewal of the cluster s corporate identity to facilitate internationalization
Accredited Clusters in Hungary ICT 8 Machinery/vehicle production 8 Healthcare, biotechnology 7 Construction/ Energy 5 Packaging/plastics industry 3 Envrionment 1 Wood/furniture 1 Annual revenue Export revenue Employees 1011 SMEs 2 916 M EUR 738 M EUR 31 796 108 Large enterprsies 27 132 M EUR 5 629 M EUR 99 906 Total 30 048 M EUR 6 367 M EUR 131 702 Food 1 Total 34
The renewed cluster accreditation system Current accreditation call (available from August 2016) Previous accreditation call Entry criteria Stricter entry criteria Relatively low entry criteria Number of criteria 16 14 Focus of the evaluation Measuring the intensity of cooperation inside the cluster More focus on cluster management Internationalization of clusters Measuring the economic impact of the clusters Main group of evaluation criteria I. Cooperation inside the cluster II. Cluster management and the composition of the cluster III. International focus of the cluster IV. Innovation potential I. Employment II. SME orientation III. Export orientation IV. Cooperation activities V. Innovation potential Evaluation of strategy Yes Yes Accreditation Committee Yes Yes
There is room for improvement in SME/ cluster internationalisation Now Dedicated call for SME internationalisation; More focus on international activity of the cluster at the cluster related call for proposals (cluster management call, cluster accreditation). Assisting the participation in transnational projects (H2020, COSME, CBC, etc.). Presence of the cluster on international fairs, workshops, B2B meetings, conferences Future option Supporting SME/ cluster internationalisation can be linked with other areas: Cost related internationalisation can be eligible cost at all SME calls (complex calls): Technology development + internationalisation Supporting R&I activity at enterprises + internationalisation ICT development + internationalisation
Thank you for your attention! Katalin Szilágyi International relations expert Ministry for National Economy Phone: (+36 1) 896 1302 E-mail: katalin.szilagyi@ngm.gov.hu peter.keller@ngm.gov.hu www.palyazat.gov.hu