The Hungarian Pole Program and its effects on the cluster development

by Észak-Alföld

The Hungarian Pole Program is a comprehensive economic development program funded by Structural Fund sources with strong focus on the 8 pole cities in Hungary (Budapest, Miskolc, Debrecen, Szeged, Pécs, Székesfehérvár, Veszprém, Győr) and cluster development. Objectives of the Pole Program will be reached through the improvement of the business environment and cluster development.

THE 2 PILLARS OF THE PROGRAM

1. Horizontal economic development pillar: focusing on the evolvement of competitive business environment in pole cities

2. Cluster development pillar: enhancement of competitiveness of domestic companies and clusters mainly in export oriented, innovative industrial fields with high added value.

THE CLUSTER DEVELOPMENT MODEL

Cluster development is supported in four phases – based on the different characteristics of the phases tailored measures have been formed for each phase. These phases are:

1st phase: START-UP INITIATIVES

Supported activities: Cluster management and Joint services

Subsidy for supported cluster or project: EUR million 0.06-0.2

The estimated number of supported clusters/projects:150-200

Aim : Giving opportunity to all initiatives

Selection criteria: Advantage if Export-oriented business and High value-added focus

2nd phase: DEVELOPING CLUSTERS

Supported activities: Management, Joint services and investments

Subsidy for supported cluster or project: EUR million 0.2-0.8

The estimated number of supported clusters/projects: 50-100

Aim: Support to the active cooperations to help further development

Selection criteria: At least one year successful (effective) operation necessary, Export, High value added focus

3rd phase: ACCREDITED CLUSTERS*

Supported activities: Joint services and investments

Subsidy for supported cluster or project: EUR million 1 – 6

The estimated number of supported clusters/projects: 25-50

Aim : Support to clusters with proven cooperation

Selection criteria: Accreditation is an entry criterion, Export, High value added focus, Track-record

4th phase: POLE INNOVATION CLUSTERS

Supported activities: Services, Investments, Complex Centers

Subsidy for supported cluster or project: EUR million 6 – 17

The estimated number of supported clusters/projects: 5-15

Aim : Complex background infrastructure for the most successful clusters

Selection criteria: 2nd accreditation level, Export, High value-added focus, Track-record

* CLUSTER ACCREDITATION

Before the 3rd phase (Accredited Clusters) clusters have to get through a rigorous expert evaluation system with the aim of selecting the most promising initiatives.

RESULTS AND OUTPUTS

Clusters:

-         79 start-up initiatives to be granted (8 million EUR)

-         21 developing clusters to be granted (5,2 million EUR)

-         17 accredited clusters (until October of 2009)

-         29 joint projects by the accredited clusters to be granted (21,2 million EUR)

Pole cities’ research & development projects:

-         EUR 280 million granted for the 8 pole cities until October of 2009

-         Several additional tenders are under evaluation

Municipalities, Chambers of commerce and civil organizations:

-         Closer cooperation between the actors of the economy

-         The increase of the economic performance brings along the income growth of the municipalities, consequently the resources for public investments also rise

Universities and research institutes:

-         Establishment of R&D infrastructure and economic utilization of the results

-         Risk elimination in the field of innovation

-         Demand oriented educational systems

Companies:

-         Growing entrepreneurial courage

-         Growing employment and purchasing power

-         Reaching the sustainable growth potential

-         Well-educated workforce

Nov, 23 2009 1 Comment » | Clusters, Észak-Alföld, Good Practices, News