Tuesday, October 1, 2019

Expansion plan of 5G Telecom boosts Hungarian economy

Hungary's ambition is to provide the country with nearly full outdoor 5G coverage similar to 4G by the end of 2026. Thanks to the direct and spill-over effects of the introduction, it is estimated that GDP will increase by as much as HUF 1,100 billion and 135,000 jobs, ”said Deputy Secretary of State Károly Solymár. We asked the Deputy Secretary of State of ITM about Industry 4.0 initiatives, Hungary's fintech development, and jobs being lost due to automation.


Indeed, over a fifth of Hungarian GDP is indirectly generated by the digital economy, and we are at the forefront of this in Europe. The sector indirectly employs around 400,000 people, the highest rate in the EU after Ireland and Finland. In terms of performance, export ability is the deciding factor, and in order to enhance this, we launched the Government's Digital Export Development Strategy three years ago. As one of its measures, an application to support the entry of ICT companies into the international market is currently available within the framework of GINOP, which has already supported 41 domestic enterprises. To reduce the lack of IT professionals, Programming for Your Future is a highlight! is a program that improves the position and performance of IT higher education by prioritizing the needs of home-based ICT companies. First results are already visible, with enrollment in university and college IT training increasing by 35 percent since 2016, with over 6,400 enrolled in this field this year. It is important that a large proportion of start-ups in the sector come from rural regions and their metropolitan areas, assisted by the INPUT program, which provides free mentoring, training and other services for digital startups.



From 2020 onwards, the government will increase its budget for research and development and innovation by HUF 32 billion annually. There is an urgent need for universities and research institutes to forge closer links with economic operators and domestic enterprises, thereby improving the innovation capacity of small and medium-sized enterprises, which are still severely lacking.


The Ministry of Innovation and Technology (ITM), together with the Hungarian Chamber of Commerce and Industry and the Council for the Development of Enterprise, has developed a strategy for the development of small and medium-sized enterprises for the period 2019-2030 according to the needs of entrepreneurs. One of the basic ideas of the government's recently adopted strategy is to make domestic enterprises aware that they need to develop in order to remain competitive and even grow, and innovation is also a prerequisite for innovation in the industrial sector. Launched this fall, the Hungarian Multi Program of GINOP is aimed at strengthening small and medium-sized enterprises with high growth potential and producing innovative and exportable products or services.


 More than two hundred companies have been contacted, one hundred of whom have already joined the initiative. ITM aims to create an expert environment: it seeks the involvement of companies capable of delivering knowledge in twenty-two areas across four major areas. Small and medium-sized enterprises can apply for the 2.5 billion forints until September 23, in the new announcement of the Irinyi Plan industrial strategy support program. The program supports technological innovation in manufacturing companies. The maximum amount to be won is HUF 400 million.

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