Geographia Polonica (2005) vol. 78, iss. 2

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A New Tool for Economic Growth: Role of Innovation in the Transformation and Regional Development of Hungary

Zoltan Gal

Geographia Polonica (2005) vol. 78, iss. 2, pp. 31-52

Abstract

The paper is concerned with the role of innovation during the transition period. It presents indicators of the national innovation system and spatial impact of the economic trans-formation on research and development. While in the early transition years, spatial differences were largely determined by FDI in manufacturing, the new directions of innovation have recently become the main driving force that differentiates economic space. Preconditions for the innova-tion-led development are to a large extent jeopardized by the shallower innovation potential of the regions and the dominant role of Budapest. The final section deals with the regional policy implications, discussing the innovation-oriented regional policy approach.

Keywords: economic transformation, national innovation system, R&D, geographical disparities, regional innovation policy.

Zoltan Gal, Centre for Regional Studies, Hungarian Academy of Sciences, University of Kaposvâr PO.BOX 199, 7601 Pecs, HUNGARY