The aim of the modification is to ensure that support decisions are made more efficiently, in a more targeted way, and aligned with economic policy priorities, while providing greater flexibility in handling individual cases. Below we summarize the most important changes and their business impacts.
The aim of the change
Grants based on individual government decisions are one of the key tools of Hungarian economic policy. The government's goal is to:
- strengthen high value-added, low environmental impact investments,
- and enhance the competitiveness of enterprises, especially in the R&D and technology sectors.
The transformation of the support system is also a response to the changed EU regulations and European competitiveness directions.
What exactly has changed?
1. New eligibility categories and activity areas
In the future, priority will be given to:
- research and development projects,
- developments within the supplier value chain,
- competitive domestic enterprises,
- and investments in the biotechnology, electronics, machinery, pharmaceutical, ICT, automotive, and food industries.
2. More flexible geographical and size conditions
The minimum investment amounts required to access support are differentiated by region and settlement type. For example:
- An investment of EUR 5 million is required in larger cities (e.g., Pécs, Miskolc),
- EUR 2–3 million may be sufficient in smaller settlements, especially in eastern and southern counties.
3. New evaluation indicators introduced
The following indicators have been introduced:
- Annual and total additional wage mass
- Annual and total additional revenue
These indicators help in the targeted assessment of grants and make the economic utility of the subsidies more measurable.
4. Focus on research and development
Special incentives apply to enterprises that establish new R&D facilities with at least 10 researcher positions and conclude cooperation agreements with domestic higher education institutions.
What should businesses pay attention to?
The most important feature of the new system is that there is no longer automatic access to grant resources. Support is awarded based on individual government decisions (EKD), meaning:
- Prior contact with the Hungarian Investment Promotion Agency (HIPA) is required, which acts as an intermediary between companies and decision-makers.
- There is no open call for proposals, so companies must proactively initiate the support process.
- Economic policy aspects play a prominent role in the evaluation: geographical location, job creation, innovation potential, etc.
- A detailed project plan and business concept will be required already in the preparation phase to provide convincing arguments for the support request.
- The pre-screening and support recommendation of projects fully depends on HIPA's professional proposal.
Companies must therefore not only develop the professional content of their project well but also demonstrate how it fits into the current state economic strategy. In the new system, competition is not about filling out forms quickly, but about strategic thinking and forward-looking planning.
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