INDUSTRIAL-RESEARCH IN HUNGARY - A VICTIM OF STRUCTURAL-CHANGE

In Hungary, industrial R&D capacity decreased by about 70% between 198 9 and 1993. This is closely related to declines of 20% in GDP and almo st 30% in industrial production. Substantial structural and ownership changes were experienced. The newly-established private firms are main ly small enterprises. As yet, they are uninterested in, and incapable of, technological development. The earlier strong and large network of industrial R&D institutes seems to have disappeared. The organization s concerned have been transformed into small- and medium-sized corpora tions, or have been wound up by the State Assets Management Company. T heir original function has been considerably modified. There are now o nly a few customers (including the government) who visit them to apply for new technologies or products. An awkward structural change is goi ng on in this transitional period. industrial R&D institutes have alre ady been effectively eliminated, at the start.