Invented in Hungary 2022-2023 Sample

CONTENTS

Introduction: The Innovation Hothouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

NATIONAL RESEARCH, DEVELOPMENT, AND INNOVATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Keeping Innovation Hungarian 6 Science is Universal: Hungary Aims to Promote ‘Brian Circulation’ at its Research Sites . . . . . . . . . . . . . . . . . . 10

PROTECTING INNOVATION 12

Innovation, R&D and Intellectual Property 14

HEALTH INNOVATION

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Building EU-level Hungarian Excellence in Molecular Medicine 19

HUNGARIAN STARTUP UNIVERSITY PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

HSUP: Evangelizing the Innovation and Startup Mentality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Airport Innovation 30

BUD CEO: Digitalization and Sustainability ‘a Must’ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

RESEARCH & DEVELOPMENT 36

Research, Development and Innovation Step Into the Limelight in Hungary 37

CASE STUDIES

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Protective Coating Firm Resysten Begins Global Expansion 40 Stellantis to Acquire Hungary’s aiMotive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Delivering Innovation Solution Case Studies for SMEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

EdTech app Redmenta Wants to Expand on EUR 140,000 Angel Investment 44 Sharity Impact Wins World Summit Awards Nomination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

INVENTED IN HUNGARY 2022-2023 | A BUDAPEST

BUSINESS JOURNAL PUBLICATION

BBJ Editor-in-chief: Robin Marshall • Editorial: Balázs Barabás, Bence Gaál, Gergely Herpai, Christian Keszthelyi • Sales: Csilla Lengyel, Bernadette Oláh, Erika Törsök • Layout: Zsolt Pataki • Cover image: Based on an image by INAMEL / Shutterstock.com • Publisher: Business Publishing Services Kft. • Media representation: AMS Services Kft. • Address: Madách Trade Center, 1075 Budapest, Madách Imre út 13-14. • Telephone: +36 (1) 398-0344 • Fax: +36 (1) 398-0345 • ISSN 2732-1568

KEEPING INNOVATION HUNGARIAN

This year could fairly be described as the most complex in decades. With recession and growing budget deficits in sight, governments are looking at cutting costs. This can harm long-term projects such as funding research, development and innovation. How is the Hungarian administration handling this situation? The Budapest Business Journal talks with State Secretary László György at the Ministry for Culture and Innovation.

By Balázs Barabás

BBJ: Under the pressure of the budget deficit, the Hungarian government has started cutting expenses. How will this impact R&D funding?

László György: University budgets have doubled since January 2022. A certain percentage of their operation is R&D and innovation. Consequently, the increased budget will also result in more funds for R&D and innovation. On the other hand,

cutting costs now will impact future spending. Our research facilities and universities are currently accessing the funds we have provided in the previous two to three years. As for the next year, the funding will be different: 40% of it will be performance-based. Also, we aim to access as much EU funding as possible for our universities, institutions and companies. It is essential to see that of the total EU funds for innovation, Eastern European states, that is, those that joined the EU most recently, have access to only 5% of those funds. The remaining 95% are available to the “older” member states. True, we have to do our “homework” and spare no effort to access as much as possible of these funds, but we must also see that the competition for innovation funds is not even for all competitors.

BBJ: A new concept arose in recent years: the social usefulness of R&D and innovation. What are the latest developments in this area?

LGy: There have been considerable changes in the R&D and innovation system in Hungary beginning in 2018. One of these is the creation of the Eötvös

Photo by xtock / Shutterstock com

SCIENCE IS UNIVERSAL: HUNGARY AIMS TO PROMOTE ‘BRAIN CIRCULATION’ AT ITS RESEARCH SITES

The National Research, Development, and Innovation Office (NKFIH) is launching a website to promote Hungary’s research infrastructure. The Budapest Business Journal asked Dr. István Szabó, Vice President for Science and International Affairs at NKFIH, the rationale behind the website, its target audience, and the results hoped for from it.

By BBJ Staff

BBJ: The NKFIH will soon launch a webpage on research infrastructure. Why is this necessary, and what audiences will the website target?

István Szabó: Research infrastructure and its scientific output have always played a critical role in any country’s research-developmentinnovation (RDI) performance. There have been a significant number of top-class research infrastructures in operation for many years (some even for decades) in Hungary, often working in what we may call “scientific isolation” or the “ivory tower of science.”

Today, more than ever before, our world and societies need complex solutions to complex problems. Now researchers and research infrastructures are seeking cooperation opportunities to deal more efficiently with the challenges we are all facing today. The various scientific domains, physical sciences, health sciences, social sciences, and so on, need to work together to find complex solutions to complex problems. Now, effective cooperation doesn’t happen locally, and here I need to emphasize how fundamentally international science is. To show researchers in other countries the scientific assets, know-how, and experience Hungary possesses, to show them research projects they could contribute to, we need to put Hungary’s top research infrastructure on the map of the world. We need to make our best scientific assets clearly visible and accessible.

We began working on this in late 2020, when we compiled the most up-to-date

research infrastructure-specific publication, showcasing around 28 top-of-the-line research infrastructure establishments in Hungary. A year later, in December 2021, we edited an even more comprehensive publication, and as a newly introduced tradition, “Excellent” and “Emerging” Research Infrastructure certificates were awarded to nearly 60 infrastructures and clusters. The next step in this process was creating this new website, researchinfrastructures.hu. We think the site has a clean but visually attractive look and its menu makes searching and interaction with research infrastructures effortless. The primary audience of the new website will be the community of international researchers; hence at this time researchinfrastructures.hu is available only in English. To reach our desired audiences, we’ll promote researchinfrastructures.hu on various online channels throughout 2023.

BBJ: Tell us more about the “Excellent” and “Emerging” Research Infrastructure titles you mentioned.

ISz: Between late 2020 and the spring of 2021, we conducted a nationwide survey to evaluate the preparedness and international embeddedness of Hungary’s research infrastructure portfolio. Following the survey and the evaluation process, the National Research Infrastructure Committee decided to introduce the “Excellent” and “Emerging” research infrastructure titles as a sign of recognition toward those concerned. A total of nearly 60 such titles and certificates were awarded to top infrastructures and newly developing

infrastructures and clusters. We also introduced a “seal of excellence” as the visual representation of research excellence demonstrated by the selected institutions and research facilities. We’re hoping this concept can be further developed into a fully-fledged scientific brand.

BBJ: Why is cooperation important between research, development and innovation?

ISz: No one would question that scientific research is indispensable to finding knowledge-based solutions to grand societal challenges of macro-regional and even global relevance. We must emphasize that the relationship between research and innovation shows a diverse landscape and is mostly a very complex phenomenon; a “one size fits all” model simply doesn’t exist. The time between a breakthrough in basic research and an application at an industrial scale varies and is difficult to predict. Efforts must, nevertheless, be made to shorten the gap between scientific advances and their application.

Research infrastructures (RIs) constitute a fundamental pillar of research and innovation, providing researchers, innovators, and other stakeholders with unique knowledge and expertise, experimental devices and technical resources. To develop state-of-the-art technologies, potentially feeding into innovations, it is vital to perform cutting-edge fundamental- and applied research. RIs act as an amplifier in research, development and innovation, contributing to regional development through offering highly skilled jobs and stimulating the growth

PROTECTING INNOVATION

INNOVATION, R&D AND INTELLECTUAL PROPERTY

By Balázs Barabás

BBJ: What are the main categories of intellectual property rights, and what do they protect?

Gyula Pomázi: Patent protection ensures an exclusive right to exploit new and industrially applicable solutions involving an inventive step in any field of technology. For example, a product or piece of equipment and its application, as well as the processes related thereto, may be patentable.

Patent protection is valid for up to 20 years in the country where it was granted. A patent valid in Hungary may be obtained via a national or European application or by an application submitted within the framework of the Patent Cooperation Treaty (PCT).

Utility model protection is legal protection for new technical innovations not reaching the level of a patentable invention. A further difference is the duration of protection

(limited to 10 years) and the fact that, currently in Hungary, only the configuration, construction, or arrangement of objects or their parts can benefit from utility model protection, not processes or chemical products, for example.

Trademark protection ensures an exclusive right to use any sign (such as words, including personal names and slogans; letters; images; two- or three-dimensional shapes,

Many of today’s successful Hungarian businesses started with an innovation, a spark of what would become a well-known company abroad. But those innovations need to be protected so the owners can retain the revenues. How can this be achieved? Gyula Pomázi, President of the Hungarian Intellectual Property Office, gives the Budapest Business Journal the answers.

Photo by Olivier Le Moal / Shutterstock com

BUILDING EU-LEVEL HUNGARIAN EXCELLENCE IN MOLECULAR MEDICINE

The Hungarian Center of Excellence for Molecular Medicine (HCEMM), with its headquarters in Szeged, is building a world-class European-level facility for research and development related to healthy aging. Whether you are a medical researcher looking for challenging opportunities, or a company in need of the right partners, the answers you are looking for may well be found in the south of the country.

Supported by the European Union’s Horizon Program and the Hungarian National Laboratory and Thematic Excellence Programs, HCEMM is driving innovation in so-called translational medical research, which aims to convert basic research into medical applications.

With the backing of the Heidelberg-based European Molecular Biological Laboratory (EMBL) as its advanced partner, HCEMM is bringing tried and tested European-level institutional research and expertise to Hungarian life sciences.

R&D at HCEMM is carried out by Research Groups and Advanced Core Facilities (ACFs). The main focus is on healthy ageing. To administer the program, HCEMM Ltd. was incorporated by the Biological Research Center Szeged (BRC), the Semmelweis University in Budapest and the University of Szeged and took over administration for the so-called EU Teaming Grant from the National Research, Development and Innovation Office.

The Hungarian Center of Excellence for Molecular Medicine received National Laboratory status in Hungary in 2020. It is the third EMBL partnership in molecular medicine, meaning the center can access a network of partner institutes of excellence in the life sciences. Besides opportunities for

scientific collaborations, the framework also allows HCEMM to participate in EMBL Partnership Conferences, open to partners only, as well as other events.

A vital component of the operational model for HCEMM is the development of its ACFs. The main goal is to ensure the efficiency of HCEMM’s research groups is increased in terms of excellence (output of high-quality scientific papers) and sustainability (ability to generate income by competitive grants, spin-offs, and technology transfer agreements), but each of HCEMM’s owners also utilizes the ACFs.

The core facilities present a range of services tailored to the requirements of the researchers. It also acts as an EU-level

infrastructural, competence and training base that offers its capacities for any Hungarian and EMBL partner researcher, as well as external industrial users.

The ACFs connect with their European Molecular Biological Laboratory counterparts and work together on projects throughout the entire European network. The idea is to do as much as possible in Hungary but use the help of EMBL for specific specialized tasks for which the infrastructure is currently not available here.

Hungarian scientists travel to EMBL facilities regularly and several larger projects are now evolving that, over time, should be able to continue as EUfunded joint projects.

HUNGARIAN STARTUP

HSUP: EVANGELIZING THE INNOVATION AND STARTUP MENTALITY

Over the past two years, the Hungarian Startup University Program (HSUP) has involved more than 6,000 students in the country. The Budapest Business Journal asked Krisztián Kölkedi, deputy CEO of the Express Innovation Agency and one of the founders of the program, about its beginnings, the creation of the agency leading it, international successes, and future plans.

Photo by Matej Kastelic / Shutterstock com

BUD CEO: DIGITALIZATION AND SUSTAINABILITY ‘A MUST’

Airports have faced a strong recovery in passenger traffic during the summer but also difficulties recruiting the required staff. Advanced technology is increasingly being used to help deal with such challenges. The Budapest Business Journal talked to Chris Dinsdale, CEO of Budapest Airport (BUD), the operator of the Ferenc Liszt International, about the investments being made to make travel more pleasant for passengers.

By Balázs Barabás

BBJ: Security checks and baggage handling are probably the most time-consuming processes for passengers in any airport. How is BUD easing this stress?

Chris Dinsdale: One of the solutions that we have implemented is designed to tell passengers what is actually happening at a given moment, so when you arrive at the security line at the airport, you’ll see screens that tell you how long the wait is. It tracks Wi-Fi

and Bluetooth signals from phones anonymously. It doesn’t know anything about the person; it just knows that there’s a phone that’s going from point A to point B in a certain amount of time. Based on this information, it can measure how long people are taking,

RESEARCH, DEVELOPMENT AND INNOVATION STEP INTO THE LIMELIGHT IN HUNGARY

Research, development and innovation are essential activities in today’s business landscape for ensuring economic prosperity in the long term. While Europe-wide, there are often complaints about a bridge between academia and industry in terms of R&D, Hungary’s innovation landscape is gradually bursting into life. It seems wellplaced to deliver potential growth opportunities for the country.

By Christian Keszthelyi

With the most severe immediate impacts of the pandemic fading, the rise in medical project research and development sparked by the Coronavirus is slowing. With sustainability and green technology seeing increasing attention, e-mobility projects, especially related to electric vehicles and the charging infrastructure, are rising.

“In addition, we are seeing that in the past few years, the number of information technology projects and IT developments are a very significant part of overall R&D activity,” Boldizsár Cseh, manager for

R&D tax benefits and cash subsidies at PwC Hungary, told the Budapest Business Journal. Additionally, technology research and development projects are accelerating.

These trends are paralleled by an increased interest from businesses toward research and development-related tax benefits, which is likely a response to the challenging economic climate, dominated by post-pandemic recovery, supply chain issues, the energy crisis and inflationary pressures. As companies are steering toward cost-cutting measures, R&D tax benefits are a great and safe way for such efficiency streamlining.

Research and development deliver immense benefits to the business landscape, and its positive effects have increased in the last few years.

“In the case of every project that can qualify as R&D (from any area, be it IT development, pharma, manufacturing, FinTech, and so on), usually 6-11% of R&D costs can be the net amount of incentives from CIT [corporate income tax], LBT [local business tax] and social contribution tax. It should also be mentioned that this tax incentive can be achieved retroactively,” Cseh tells the BBJ.

Boldizsár Cseh, manager for R&D tax benefits and cash subsidies at PwC Hungary.

PROTECTIVE COATING FIRM RESYSTEN BEGINS GLOBAL EXPANSION

colorless, and odorless, using photooxidation properties to neutralize and protect surfaces from viruses, bacteria and other pathogens.

The company claims that the number of bacteria and microbes settled on any surface treated with its coating is reduced by up to 99% for one year; the protective coating thus effectively supports cleaning and disinfection protocols and contributes to the more sustainable operation of companies and institutions.

Ireland, Italy, Romania, Spain, the United Kingdom, and the United States, as well as in Taiwan and Macao.

ORGANIC GROWTH

The business was founded in 2014 and has become a medium-sized company as a result of continuous, organic development. It says the group’s sales revenue exceeded half a billion forints last year.

By BBJ Staff

Resysten announced in mid-November 2022 that it had agreed on a HUF 750 million capital injection with the Columbus Private Equity Fund, from which it will develop its laboratory and research base in addition to overseas exposure. The co-financier is the stateowned EXIM Hungary.

Resysten has effectively become a medium-sized company from a family business: the invisible and long-lasting hygiene coating it developed keeps germs away from surfaces frequently touched by many. Today, the system protects the health of millions of people in hospitals and public transport, but it is also used in sports facilities, educational institutions, multinational companies and shopping centers.

The self-developed hygienic protective coating can prevent pathogens from sticking to almost any surface for a whole year. The layer is invisible,

The Resysten is used in Hungarian public transport on the Budapest metro network, BKV trams, and Volánbusz coach routes, as well as in domestic hospitals, shopping centers, sports facilities, the manufacturing halls of multinational companies, and in community rooms.

The group’s services are not restricted to the Hungarian market, however, and have been used in the Czech Republic,

“In today’s globalized world, the spread of viruses and bacteria has accelerated dramatically, which, together with the increasing diversification of pathogens, has presented companies and institutions with a new challenge,” explains Péter Lehoczky, one of the company’s founder-owners and its managing director.

“We believe integrating new technologies into our everyday life is inevitable for effective protection. Using long-lasting and continuous

A Hungarian company whose protective hygiene coating came to the fore as the COVID pandemic spread across the world has announced that it is launching its global expansion on the back of a sizeable private equity investment.