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26. SCIENCE AND TECHNOLOGY

Research, and development

Research, and development

Research and development comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society and the use of this stock of knowledge to devise new applications.

Characteristics of research and development: the element of creation, the element of novelty, the adaptation of scientific methods and the creation of new knowledge. Types: basic research, applied research and experimental development.

Scope of the survey

The HCSO survey of research and development (R&D) – according to the recommendations of international organisations – covers all organisations (research institutes, government organisations, business enterprises, higher education institutions, and departments, clinics and laboratories operating within them) where research and development is carried out.

Number of total R&D personnel in head count

Internal and external staff number of natural persons engaged in R&D activities at research units of the different sectors (researchers – promoting research and development directly by their work –, R&D technicians as well as other, manual or non-manual supporting staff), irrespective of the time spent on research and development.

Persons with scientific degree

Hungarian citizens who received a scientific degree in Hungary or abroad, in which latter case the degree was accepted in Hungary. Foreign citizens who obtained a scientific degree in Hungary are excluded, with the exception of those having settled in Hungary or staying here permanently for long-term labour).

Number of R&D personnel in full-time equivalent (FTE)

Total staff number of people engaged in R&D activities converted to full-time equivalents, i.e. weighted with the proportion of time spent on actual research and development activities to total working hours.

Intramural expenditure on research and development

In accordance with the international methodology, intramural R&D expenditures are expenditures for R&D performed within the statistical unit.
The total amount – not including VAT – of R&D current costs, R&D capital expenditure and R&D intangible assets, from any kind of domestic or foreign source and irrespective of whether the financial source was originally assigned for research, development or other purpose.

Financial sources of R&D expenditure

Accounting R&D by financial source details the funders of – national – expenditure and the sources of funds used.

The following financial sources are distinguished in R&D statistics:

Patent

A patent ensures the legal protection of inventions by granting a better position to the owner of invention compared to that of rivals in the market of products and technology.

Any new invention which is based on an inventive activity and is susceptible of industrial application can get the legal protection in the form of a patent.

More information is available from the meta-information database:

Innovation

International methodological framework of the survey

Enterprises' innovation activities are surveyed by NSDCP questionnaire No. 2132, compiled in accordance with international recommendations. The methodological framework of the survey is Commission Regulation (EU) No. 995/2012 (the Community Innovation Survey, 'CIS') and the OECD's Oslo Manual. The latest, fourth edition of the manual was published in 2018. The 2018 survey (CIS2018) is the first one based on the new methodology (observed period: 2016–2018), as a result of which there is a break in data series of some indicators.

Scope of the survey

The target population of the survey ('total enterprises', used as a denominator in tables) covers business units operating in mining and quarrying (B), manufacturing (C), electricity, gas, steam and air conditioning supply (D); water supply, sewerage, waste management and remediation activities (E), wholesale trade (G46), transportation and storage (H), information and communication (J), financial and insurance activities, architectural and engineering activities; technical testing and analysis; scientific research and development; advertising and market research (M71–73) and employing at least 10 people. Smaller business units are not covered by the survey. The survey covers all units employing 100 or more people and a sample of enterprises with 10–99 employed people. In accordance with international methodology, the target population was extended in the 2012 survey (CIS2012) to include business units operating in motion picture, video and television programme production, sound recording and music publishing activities (J59), programming and broadcasting activities (J60), scientific research and development (M71), advertising and market research (M73) divisions.

Innovation

A new or improved product or business process (or a combination thereof) that differs significantly from the enterprise's previous products or business processes and that has been introduced to the market (product) or brought into use by the enterprise (business process).

There are two main types of innovation: product innovation and business process innovation.

The definition of innovation reflects a new methodological requirement, for innovation must be implemented during the observation period: a product must be made available to potential users, while business process innovations must be brought into use by the enterprise in its internal or outward-facing operations.

The definition of innovation does not require that innovation is developed by the enterprise itself. There has been no change in the methodology in this respect. An innovation can be developed by an enterprise itself, or together with other enterprises or organisations, or can be developed by other enterprises or organisations. By this, the methodology acknowledges that innovation also involves the diffusion of existing technologies and practices across the economy (diffusion of innovation).

Product innovation

A new or improved good or service that differs significantly from the enterprise's previous goods or services and that has been introduced on the market.

Product innovation must provide significant improvements to one or more characteristics or performance specifications of the product. Product innovation includes digital goods or services and significant changes to the design of goods1. Product innovation excludes the simple re-sale of new goods and minor changes of a solely aesthetic nature.

Based on the product type, there are two types of product innovation:

Based on the degree of novelty of product innovation, we can differentiate between:

The annual net turnover from product innovation is estimated by data providers and includes sales revenues of both new to the market and new to the enterprise products.

Business process innovation

A new or improved business process for one or more business functions that differs significantly from the enterprise's previous business processes and that has been implemented within the enterprise.

The different types of business process innovations are identified based on the categories of business function(s) in which the enterprise implemented the new or significantly improved business process2.

Business process innovation can be implemented in the following business functions:

  1. Methods of producing or developing goods or of providing services (until 2018, production of goods and provision of services were part of process innovation, methods of the development process are a new element introduced in 2018),
  2. Methods of logistics, delivery or distribution (until 2018, part of process innovation),
  3. Methods of information processing or communication (until 2018, part of process innovation),
  4. Methods of accounting or other administrative operations (until 2018, part of process innovation),
  5. Business practices for organising procedures (including business management and corporate governance procedures) or external relations (until 2018, part of organisational innovation),
  6. Methods of organising work responsibility, decision making and human resources management (until 2018, part of organisational innovation),
  7. Methods of marketing or sales (until 2018, marketing innovation was one of the main types of innovation, it also included significant changes to the design of goods).

Innovative enterprise

An enterprise that reported one or more innovations in the examined period. This applies equally to an enterprise that is individually or jointly responsible for an innovation.

An innovative enterprise introduces at least one (any) type of innovation in an observed period.

Please note: until 2018, the concept 'innovative firm' was used in a broader sense and referred to an enterprise that was engaged in any innovation activity during the examined period, hence the introduction of an innovation was not a requirement. From 2018 on, the concept 'innovation-active enterprise' is comparable with the previous concept of 'innovative firm'.

Innovation activities

Innovation activities include all developmental, financial and commercial activities undertaken by an enterprise that are intended for or result in an innovation for the enterprise.

Innovation-active enterprise

An enterprise engaged at some time during the observed period in one or more innovation activities to develop or implement new or improved products or business processes for an intended use. Both innovative and non-innovative enterprises can be innovation-active during the observed period.

Innovation expenditure

Economic expenditure (costs and capital expenditure) of innovation activities undertaken by an enterprise or a group of enterprises. Expenditure can be intramural (on in-house innovation activities) or extramural (on innovation activities carried out by third parties on behalf of the enterprise).

Main concepts valid until 2018 (based on the Oslo Manual 2005 edition)

Innovation (until 2018)

Implementation of a new or significantly improved product (good or service) or process, a new marketing method or a new organisational method in business practices, workplace organisation or external relations. Four types of innovation are distinguished: product innovation, process innovation, marketing innovation and organisational innovation.

Product (good or service) innovation (until 2018)

Introduction of a new or significantly improved product (good or service) or supporting activity, regardless of its result (innovation abandoned or not yet completed is included).

Process innovation (until 2018)

Introduction of a new or significantly improved production process, distribution method or supporting activity, regardless of its result (innovation abandoned or not yet completed is included).

Marketing innovation (until 2018)

Implementation of a new marketing concept or strategy which was not used before by the enterprise and which differs significantly from the enterprise's existing marketing methods.

Organisational innovation (until 2018)

Implementation of a new organisational method in an enterprise's business practices, workplace organisation or external relations.

Innovation activity (until 2018)

Innovation activities are all scientific, technological, organisational, financial and commercial activities which actually, or are intended to, lead to the implementation of innovations. Some innovation activities are innovative themselves, other ones are not novel activities but are necessary for the implementation of innovations. Innovation activities also include research and development not directly related to the development of a specific innovation.

Innovative firm (until 2018)

An innovative firm is one that has innovation activity during a period under review.

More information is available from the meta-information database:

 

 

 

1 Before 2018, significant changes to the design of goods were accounted for in marketing innovation.
2
 
The Oslo Manual 2018 edition identifies six main categories of business functions and, in connection with this, of business process innovation. For ensuring the comparability of innovation data over time, the Community Innovation Survey model questionnaire uses seven categories.

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