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2 Published with the support of the European Union

3 Regional Development Phare Programme North-East-Hungarian Region South-Transdanubian Region HU9705

4 To The Reader One of the most promising yields of our accession to the European Union is the ever growing presence of the fundamental principles operating in the Union s Member States: partnership, subsidiarity, concentration, additionality, programming as everyday practice in Hungary. Regional development policy has played and is playing a pioneering role in introducing and learning about these basic principles. A critical condition for the operation of these principles is to form the appropriate institutional background and knowledge on all levels of regional development. The 1997 Phare Regional Development Programme is a key element in the implementation of these objectives. Its importance is reflected among a number of measurable results embodied in various objects in the very fact that national, regional, county and local organisations could obtain practical experience concerning the feasibility of principles they read and learnt about, their difficulties, conditions and requirements during their practical work. The institutional system we established, the wide and widely varied range of partnerships, the successful solution of a series of innovative problems have generated new skills, knowledge and partners for all of us, which will provide important support in our continued work. This knowledge and experience we gathered will be a useful tool strengthening all of us in the coming years, when we have to stand fast in new tasks and new organisations. The beauty of regional development work is that it is always there, everywhere as an indispensable element whatever the development task at hand. Let me thank to everyone whose useful, professional and supportive work made all this possible in the implementation of the now closing 1997 Phare Regional Development Programme. Their names and results will be listed in detail on the following pages of this publication, and let me also thank to everyone who were there with us and for us with invisible support for the programme from its concept to its implementation. 2 Dr. Péter Szaló National Regional Development Office, Vice President, Programme Authorising Officer

5 The Gate Opens: Greetings from the Union This book, which analyses the Regional Development Programme HU9705, is of particular importance to Hungarians. Regional funding is second only to agriculture as a source of EU support in Member States, and indeed shares with it many issues which Hungary is working though as part of its accession process. Regional funding in EU Member States is well-established, the first regional development funding having started in But the 1997 Phare regional development programme in Hungary was something of a conceptual revolution, for two reasons. Firstly, from 1998 Phare resources would be concentrated on preparing for accession, so the government was already keen to learn what structures and systems would be needed to make best use of future membership. Secondly, the region as the basis for development planning was unknown in Hungary which was accustomed to the county system. In signing off HU9705, therefore, both the Commission and the Hungarian authorities were breaking important new ground. The programme focused on two of Hungary s poorest regions and included several innovative features: decentralised implementation; integrated development actions, and a wide range of actors, including local government, NGOs, educational institutions, business organisations, cooperatives and farmers. Applicants and beneficiaries were encouraged to develop partnerships, and management skills were developed at both authority and beneficiary level. As this book shows, the programme enabled regional development agencies to develop skills in project and programme design and management. Staff were trained as the programme went on, and new staff were hired to cope with the expanding workload. Regional development councils have obtained valuable experience in project selection and prioritisation while beneficiaries have learned how to manage procurement according to EU rules as well as the skills of consortium-building, teamwork and partnership. The principal areas tackled under the programme - business development, human resource development and rural development - are those which will feature centrally in Hungary s National Development Plan. I am convinced that this is no mere accident. I consider that this programme has had and will have resonances beyond the two regions it has helped, and stands as a model for the vital work of Hungary s regional development. Jürgen Köppen Head of Delegation Delegation of the European Union in Hungary 3

6 The HU9705 Regional Development Phare Programme Re-launched in December, 1997, the 1997 Phare Regional Development Programme was the fourth in the row of Phare regional development programmes. Just like in the case of former regional Phare programmes, the strategic objective of the programme of 1997 was to promote the accession to the European Union. In the field of regional development, this objective is primarily interpreted as the task of creating policies, institutions and mechanisms in line with the EU system through the implementation of development projects selected for grant schemes, and of preparing the country for receiving and efficiently adopting potential support of the future provided by the Structural Funds. As a result of the above, the primary objective of the Phare Regional Development Programme of the South- Transdanubian Region and the North-East Hungarian Region approved as a part of the country programme of 1997 was to reduce economic and social differences among the regions as well as to further develop the institutional system of regional development. Similar to former programmes, available resources could be used concentrated exclusively on disadvantaged regions (industrial crisis areas with high unemployment rate, backward rural regions) of the supported target regions. On the basis of objectives, the North-East Hungarian Region (counties of Borsod- Abaúj-Zemplén, Heves, Nógrád, Hajdú-Bihar, Jász-Nagykun-Szolnok, Szabolcs-Szatmár-Bereg) and the South- Transdanubian Region (counties of Baranya, Somogy, Tolna, Zala) were identified as target regions. The programme has three sub-programmes: 4 Industrial restructuring Providing business infrastructure, development of centres of logistics and commerce, improvement of technological basis, promotion of the practical application of R&D results, financial projects Labour market and human resource development Development programmes for university education and distance learning, other vocational training programmes, programmes for promoting the realignment of disadvantaged groups Rural development Development of products, village tourism, new forms of co-operation in the field of production and marketing, measures of forestation as well as innovative community building components.

7 The core of the programme was provided by the Regional Pilot Programme Fund operating in the two target regions managing the sub-programmes mentioned above (in the value of approximately EUR 15 million in the North-East Hungarian Region and EUR 5 million in the South Transdanubian Region). Within the frames of the programme, another EUR 4 million was allocated for the cross-border co-operation (CBC) projects between Romania and Hungary. The complexity of the Phare programme of 1997 is also demonstrated by the fact that there are two financial projects providing reimbursable subsidies for small and medium sized enterprises, in the form of micro-credit (EUR 3.7 million) and venture capital (EUR 2.5 million). In addition to the various alternatives of subsidies, considerable resources were available for professional (regional development, financial) training as well as for technical assistance during the implementation of submitted applications as specified by Phare rules concerning public purchase. The operation of the Pilot Programme Fund was mainly the task of the Regional Development Councils (RDC). They performed this task through their working organisations, i.e. the Regional Development Agencies. The framework of the decentralised programme implementation was regulated by the Co-operation Agreement made between the National Agency for Regional Development (as representative of the Ministry of Agriculture and Regional Development) and the Regional Development Councils. The agreement delegated decision-making activities and responsibility to the regional level. The major element of this arrangement was the selection of beneficiaries and the direct approval of tenders under EUR 100 thousand. Tenders above EUR 100 thousand were co-ordinated by the National Agency for Regional Development and approved by the EC Delegation. The Agency was largely assisted by the Aid-Coordination Secretariat of the Office of the Prime Minister, mostly during the negotiations with the European Committee. Although the preparation of the programme showed strong delay, implementation could be started in the first quarter of 1999, and the projects to be supported were also selected. In April, 2000, the Committee modified the deadline for contracting to be 30th June, grant contracts were made by the deadline, i.e. 91% of the resources available for the programme were contracted. This is a major achievement in itself, especially from the aspect that it can already be seen by the end of the programme that the disbursement period can also be closed with minor losses. The deadline for final payment was modified to be 31st December, Compared to former periods, the programme with a budget of EUR 34 million providing multiple EU resources accompanied by a co-financing of 25% from the government played pivotal role in the implementation of programmes enabling the evolving institutional system and its experts managing those programmes to collect practical experiences in the field of operation mechanisms of instruments of regional policy of the European Union so that they could prepare themselves for the management of Structural Funds in the future. 5 Tamás Lunk Deputy Programme Authorising Officer

8 Target Regions in the Mirror of the 1997 Phare Regional Development Programme The North-East-Hungarian Region The HU9705 Pilot Phare Regional Development Programme of the European Union identified the North-East Hungarian Region as one of its target regions. It was the first time that six counties as one region received significant Phare support within the frames of the programme. Formerly, only regional development support with county target groups were applied. The tenders and financial funds are very different from those traditionally used in Hungary as the order of procedure in the European Union is based on stricter and more transparent rules of competition. One aim of the HU9705 Regional Development Phare programme was just to present this type of tendering. Another aim in the background was to educate qualified specialist available in economic and administrative sectors by the time Structural Funds and the Cohesion Fund was opened up for Hungary after the accession. The Regional Development Council of the North-East Hungarian Region was created on 7th January, 1997 to coordinate regional development tasks reaching beyond the county borders, with the participation of the counties of Borsod-Abaúj-Zemplén, Heves, Nógrád, Hajdú-Bihar, Jász-Nagykun-Szolnok and Szabolcs-Szatmár-Bereg. The winners of applications submitted for the 1997 Phare Regional Development Programme were selected on a regional level. Relevant decisions were made by the Council on the basis of the development strategy of the region. As a result of that, more than EUR 13.2 million of Phare support was contracted by 89 applicants. In case of 27 projects, the Hungarian party provided another EUR 4 million. The position of the chairman of the Regional Development Council of the North-East Hungarian Region was occupied by chairmen of the county regional development councils operating in the responsible quarters of the Regional Development Council, according to the principle of rotation. In March, 2000, counties suspended this rotation principle in consort until the completion of the 1997 Phare Regional Development Programme to promote a more efficient operation. Consequently, the chairman of the Regional Development Council of the County of Heves remained the head of the Regional Development Council until the successful completion of the programme. Regional development work has been going on mutually supported by the six counties of the region, in co-operation with the North-Hungarian Region and the Region of Northern Great Plains created in 1999 each including 3 counties. 6 With regard to the past years as a result of the efficient use of funds available for spatial and regional development, we can say that absolute numbers underline the significant development of the North-East Hungarian Region including 6 counties, however, the region is still among the socially-economically disadvantaged regions when compared to more developed regions of the country. Tamás Sós President of the Regional Development Council of North-East Hungary

9 South-Transdanubian Region The Act XXI/1996 on Regional Development and Physical Planning created a basis for the establishment of regional development councils. With this step, an institutional system could be created that is harmonious to the European policy concerning regional development. The South-Transdanubian Region institutionalised its regional integrity by the creation of the Regional Development Council of South-Transdanubia in The development of the counties constituting the region, however, has been intertwined not only as a result of the geographic proximity but also of the similar historical heritage, attitudes and economic growth. Due to its geographic location, the South Transdanubian Region is the southern gate of Hungary, hence, it plays essential role in foreign affairs of the country. The region shows a positive picture from the aspect of the density of enterprises. At the same time, investment activities are extremely poor the region is the last among the Hungarian regions on the basis of foreign investment per capita. Key industries of the region economic industries: agriculture, food industry, and electricity; processing industry: food and textile industry; servicing sector: real estate business, tourism related activities and education services. High quality technical infrastructure is of the preconditions of appropriate development. From this aspect, the region has not reached the acceptable level. The improvement of traffic conditions and access including roads, railroads and aviation is crucial from the aspect of the dynamic development of the region and reaching the level of EU countries. As a result of the 1997 Phare Regional Development Programme of the European Union, the South-Transdanubian Region could be a target region for EU funds already for the second time. Due to the programme, 52 applications were supported in the most backward regions. The total value of support granted exceeded EUR 6 million, whereas the value of induced investments amounted to approximately EUR 10 million. The Regional Development Council of South-Transdanubia managed arising problems during the Programme in an open and innovative way and made decisions attentively to aspects of feasibility. As a result of that, development ideas defined by potential beneficiaries in the spring of 1999 could become or shall become objective reality today. On the basis of the above, the absolute efficiency of the programme can be detected in the level of preparedness of the South-Transdanubian Region for accession, the evolution of partnership and the explicit improvement of former regional indicators. 7 Tamás Koltai President of the Regional Development Council of South-Transdanubia

10 The Implemented Programme According to Target Regions Pilot Regional Programme / Tender components After the initial Phare successes in the nineties, the 1997 Phare Regional Development Programme implemented the large-scale and crucial attempt relevant to the decentralised use of Phare regional development support within the frames of three major sub-programmes. The three sub-programmes and their components were created to ensure that the Programme concentrated on major development problems of the regions, pursued a complex management approach to problems in the target regions to be developed and established a decentralised institutional basis for programme management. The outcome of the programme demonstrate the benefits of the synergy of decentralisation, concentration and complexity since problems were successfully approached and managed in the development areas. The outcome of the programme demonstrate the benefits of the synergy of decentralisation, concentration and complexity since problems were successfully approached and managed in the development areas. The institutional and technical implementation of the programme required enormous energies from the participants. Although results were sometimes doubtful, the Programme as such could create an appropriate basis in the field of human capacity, management techniques and institution building that can be used when using pre-accession funds, Structural Funds and the Cohesion Fund in the coming years. During the selection of target regions for the 1997 Phare Regional Development Programme, it was widely considered which regions of Hungary called for a regional balancing to the larges extent, serving the effecting of EU principles. In North-East Hungary and South Transdanubia, the industrial crises caused by economic restructuring twinned with age-old critical phenomena of regions traditionally characterised by small villages, the structural crisis of agricultural areas and the masses of low skilled or not marketable unemployed people. Target regions showed all typical diseases of regional development, consequently, it became very important that decentralised development sub-programmes could manage to most urging problems. Sub-programmes defined on the basis of the above aspects were as follows: 8 Industrial Restructuring Labour Market and Human Resources Development Rural Development

11 Industrial Restructuring The objective of the sub-programme is to dissolve the structure of traditional heavy industry struggling with crisis, to increase the attractiveness of areas with low level industry and to create a modern physical and intellectual environment favouring enterprising activities. This objective could tackle gravest economic and consequently social problems of the regions. As it is widely known, the northern region with its iron industry and mining was a heavy industry citadel of Hungary in the socialist era. The uranium and black coal mining of South-Transdanubia also represented a significant economic basis fundamentally determining the employment structure of the region. The situation created by collapse of eastern markets and the objectivity of market economy emerging after the political changes caused tragedies similar to an earth fall: traditional heavy industry expired or experienced a deep crisis. Not only the former physical industrial infrastructure became worthless but also labour itself. In the shadow of closed mines and salient smokestacks standing as memento, the employment of ten thousands of people had to be solved. It took decades and enormous programming efforts even for countries richer and more developed than Hungary to find proper solutions for such an urge for re-structuring. It was obvious that the 1997 Phare Regional Development Programme and its framework of EUR million for industrial restructuring could not undertake to solve all the crisis. However, based on the principles of concentration and complexity, it might identify centres of crisis and promote solution through a combination of tools. Complex problem management was ensured by the combined application of three components: Business infrastructure development Investment promotion Establishment of innovation and technological centres As the grant scheme was quite limited in South-Transdanubia, only innovation and technological centres could be supported. Major data of the industrial re-structuring programme: Component Number of project Phare support Co-financing Total support (contracted) EUR thousand HUF (in thousand HUF) (in thousand HUF) Business infrastructure North-East-Hungary South-Transdanubia Investment promotion North-East-Hungary South-Transdanubia Innovation and technology centers North-East-Hungary South-Transdanubia IN TOTAL

12 The major objective of business infrastructure development was to create attractive physical conditions and a business-economic environment for enterprises. Within the frames of that, six industrial parks located in major towns of the region received support for various basic and additional facilities, two logistic centres and one country level commercial centre were established, and one congress centre was reconstructed from the support of the component. Industrial parks and logistic centres enhance investment intentions, the appearance of domestic and foreign capital and create opportunities for small and medium sized enterprises of the region to participate in supplier networks. The objective of investment promotion was to complement business infrastructure development by exhibitions, events and the production of marketing communication materials, real estate cadastres and investment packages enhancing the fame and attractiveness of the region and calling the attention of investors to potentials provided. On the other hand, the objective also helped entrepreneurs and municipalities living in the region to be aware of their own values and opportunities of utilisation. The eleven winning projects of this component completely cover the North-East-Hungarian Region and we are happy to state that it is concentrated not only on success but also on implementation in crisis areas. The component of supporting innovation and technological centres had the objective of making the research and development potential of the target regions to be one of the engines of re-structuring, implementing the joint requirements of modernity and the involvement of local resources, enhancing innovation and a better reaction ability to changes in the region. The results of the seven winning projects were manifold, from the regional system of innovation centres in small regions to future oriented objects, hearts of industrial parks (like Pécs, Eger). In addition to the utilisation of modern capabilities of major towns (e.g. Debrecen), two abandoned barracks received new functionality during the programme, significantly contributing to the technological development opportunities of backward regions with lacking industry. Experiences of the industrial restructuring sub-programme 10 Outcomes verified that the intervention fields of the sub-programme met urging economic problems of the target regions. Intervention fields ensured complexity and had synergic effects. The Programme as a whole and its re-structuring sub-programme allowed extraordinary flexibility in terms of the (experimental) combination of resources and the creation of supporting rate. The components also allowed submitting proposals based (also) on a wide range of partnership, consequently, not only municipalities but also associations of settlements, regional development councils, foundations for enterprise promotion and entrepreneurs can be found among partners and individual applicants. The scarcity of capital available for the regions is clearly shown by the fact that mostly municipalities undertook the establishment of industrial parks and logistic centres, hoping for the influx of investment.

13 In case of business infrastructure development and the support of innovation and technological centres, the project size is about EUR thousand, i.e. representing significant investment activities. Projects implemented within the frames of investment promotion are of course of a smaller scale a couple of thousand Euros, whereas projects related to innovation and technological centres usually exceed EUR 400 thousand. Decentralised components targeted at re-structuring were associated by central elements of the Programme, namely, the micro-credit and venture capital funds to be described later as well as the consultation programme for small and medium sized enterprises and technical assistance in the field of project planning and implementation. The success of restructuring efforts funded by this Programme must be evaluated from two aspects. Through its direct indicators realised, the sub-programme created physical infrastructure for future enterprising activities, promoted regional-economical marketing, approached science to practice and future production. In addition to actual benefits and results, another crucial aspect of efforts is that each and every elements of the sub-programme work for the future, representing a power or potential stimulating growth, yielding dynamic and measurable results. 11

14 Presentation of Model Projects Model Projects of North-East-Hungarian Region Implementation of a Regional Wine Trade Centre at Tokaj The European demands for quality Tokaj wines have been showing an upward trend and parallel to it, it is improving the image of Tokaj wines both in Hungary and abroad. As a result, an increasing number of domestic and multinational companies implement major capital investments in enology at the Tokaj-Hegyalja region. This project is aimed at creating an international trade and business centre in North-East Hungary and developing business infrastructure focusing on the co-ordination of trade, investment and marketing activities related to Tokaj wines and other vinicultural zones of the region. The innovative nature of the project is without question since no such establishment has existed in this region. The beneficiary of the project is Tokaj Kereskedelmi Központ Kft. (Tokaj Trade Centre Ltd.) and the partners involved in the implementation include Degenfeld Bt., Tokaj Renaissance Society, and the Municipality of Tokaj. The total budget of the project is EUR 868,052, where the support granted by the Phare Programme was EUR 416,000 euro. The Centre has found an excellent location at the Degenfeld Palace in the centre of the town. FK Raszter Épít_ipari Rt. made the reconstruction of this building. Tokaj Kereskedelmi Központ Kft. provided the IT equipment and office machines as well as the furniture. A marketing communication strategy was developed under this project with the consequent design and implementation of marketing communication tools. This project has been completed with training course on sales and EU accession, meetings for businessmen and regional viticulture expositions. Thanks to the excellent potentialities and business infrastructure of the location, a number of business meetings were held here for the representative of both viticulture and other industries. The most outstanding programmes have included the initiation ceremonies of the Order of Wine Knighthood, the reception of a delegation from the UNESCO Conference visiting Hegyalja. In addition, very soon the reconstructed building will be the venue for an event to be attended by eminent representatives of the Masters of Wine and a number of wine-makers. 12 The implementation and operation of this Centre has already made a positive impact in this region. There is a continuous need for high level services and infrastructure and this may be the basis for long term development projects. Both the material and human resources are available. Based on the marketing communication strategy, there is a wish to create a tradition for viticulture and winemaking symposiums at Tokaj-Hegyalja. In addition, a number of methodologies could be used to make more popular the temperate and intelligent consumption of wine promoting in this way a better presence of winemaking companies and the expansion of the consumer base. This project wishes to use trade and marketing tools for promoting an outstanding product that is part of both the national heritage of Hungary and must have a place within the world heritage. Hedvig Petróczki Managing Director Tokaj Regional Wine Trade Centre Ágnes Kiss Project Responsible SOP 97 Programme Agency Results: The reconstruction of the Degenfeld Palace into a Regional Wine Trade Centre; The preparation of the marketing strategy plan for the marketing of the Tokaj wines; Wine exhibitions; Business men meeting with 100 participants; Two-day training for 20 people on the topic of sell and communication and the effects of EU accession.

15 Investment Promotion Programme for North-East Hungary The strategic goals of the North-East Hungarian Development Region focus on economic growth through the promotion of investment projects. This focus is needed because the inflow of working capital to this region is rather low. The productive potentiality and competitiveness of the economy may be boosted in the shortest run and with maximum efficiency by means of investments representing state-of-the-art technology. Since the promotion of investments is a common interest for all the counties included in this development region, the five affected counties have partnered to implement this programme. The long-term goal of the project is to promote the economic growth of the North-East Hungarian Region by increasing the number of foreign investments. As indirect goals, the project seeks enhancing the image of the region and calling the attention of prospective investors to the potentialities offered by the region. The gestor of the project is the Regional Development Board of the Szabolcs-Szatmár-Bereg County and further beneficiaries of the project include the Regional Development Boards of Borsod-Abaúj-Zemplén, Hajdú-Bihar, Heves, and Jász-Nagykun-Szolnok counties. The beneficiaries provided data and development approaches to support the contracted experts the compile a strategy and a publication. Furthermore, they provided the location for workshops and expert meetings. The overall budget of the project was EUR 95,000 the Phare Programme granted a support of EUR 76,800. In the course of the implementation, the project will produce an investment promotion strategy for the North-East Hungarian Region and a folder containing five publications in three languages (Hungarian, English and German) presenting the specific investment opportunities of the region and its counties. The strategy developed under this project would show the way towards the structural and HR developments that are indispensable for a sustainable growth, will make a proposal for the implementation of an IT basis supporting a network based on the partnership of the planning regions. As for investment promotion, both this strategy and the operative programme shall be unparalleled in Hungary since no region has compiled such a document to date. These materials will provide effective support to the region and to its counties in the investment promotion and regional marketing efforts. They will stimulate partnerships and will create an opportunity for implementing a unique image. By creating the conditions for investment promotion, this project will add to the productive potentialities and competitiveness of the economy of these two regions. 13 Gabriella Balogh Project Manager Development Agency for the Szabolcs-Szatmár-Bereg County Ágnes Kiss Project Responsible SOP 97 Programme Agency Results: Preparation of the regional investment promotion strategy plan (30 copies, and CD version); investment promotion publications for five counties (Heves, Borsod-Abaúj-Zemplén, Szabolcs-Szatmár-Bereg, Hajdú-Bihar, Jász-Nagykun-Szolnok) in 1000 copies each; two conferences introducing the publication, with 100 participants on each, including micro-regional representatives, entrepreneurs, mayors and NGOs.

16 Innovation and Technology Centre to at the Eger Industrial Park The intention was to create a Centre that promotes and supports industrial ventures relying on the potentialities of the region and underpins a regional industrial development that is in line with the principles of the EU and makes no harm to historical values, tourism and health-related tourism. A further objective is to create new workplaces and thus, boost economic growth. The main mission of such Innovation and Technological Centre is to help creating and affirming innovative enterprises in a supporting environment. In addition, due to its location within the Eger Industrial Park, this Centre would be able to provide quality services and support incoming companies (this constitutes a preferential project for the Regional Development Programme for Heves County). The beneficiary of the tender is INNTEK Innovációs és Technológiai Központ (INNTEK Innovation and Technology Centre), whose majority owners the Municipality of Eger and Egri Ipari Park Kft. implemented an exemplary cooperation and provided extra funds (by means of repeated capital increases) to deliver the project. The overall budget of the project was EUR 1.8 million; the Phare Programme granted a support of EUR 800,000. This project implemented on an area of 8,000 m 2 a green-field capital investment to create an Innovation and Technology Centre comparable to western standards. Using a total area of 2414 m 2, the building includes 17 airconditioned office rooms, a large and a small meeting room, a café, and 12 workshops. The incubator house offers discounted rates for domestic and foreign SMEs in terms of both office space and office and technical services. The tenants are also allowed to provide services to each other and to the companies settled in the Industrial Park. The building as a kind of Centre for the Industrial Park would provide good opportunities for both existing and newcomer enterprises. On the other hand, such enterprises may provide workplaces and earning opportunities for the inhabitants of both the city and the region. 14 This is an innovative project since it has created a Centre to support the local and regional propagation of R&D achievements, innovations and information on transfer of technology. In addition, it organises the regional co-operation of the affected enterprises and by this means, supports the progress of the Industrial Park, the city of Eger and its surroundings. The Innovation and Technology Centre would become a reliable partner and supporter for the enterprises settled within the Industrial Park and would support the industrial and business development of the region through long-term services. Mrs. Zelei, Edit Bencsik Project Manager INNTEK KHT. Ágnes Kiss Project Responsible SOP 97 Programme Agency Results: Creation of a 8000 m 2 Innovation and Technology Centre in the Eger Industrial Park; 17 room office building, 12 workshops, conference room; reconstruction of the outside areas (building 100 car parking area, grass areas, infrastructure); services (counselling, preparation of tenders, organisation of conferences), 11 enterprises move into the ITC.

17 Model Projects of South-Transdanubian Region Establishment of an Innovation and Technology Development Centre Strengthening of the innovation potential of the region is included in the Complex Development Programme for South Transdanubia as a significant objective. In the late nineties the South Transdanubian Region was in lack of organisations which could have been acting as the intermediators between the university and entrepreneurial spheres, thus promoting the economic utilisation of the research and development outputs, and through this, the launching of an innovation-controlled development career in the region. Consequently, the establishment and operation of such an intermediary institution at Pécs, in the major centre of higher education, is of determinant importance, and may play an essential role in the management of innovation transfer processes between the university and economic participants. The intellectual capacity of the area exceeds the average in Hungary, however, the economic efficiency and the profit generating capacity is falling behind several regions. This is why the co-operation of theoretic researchers and economic specialists of the region within the frame of the Innovation and Technology Development Centre is of significant importance with regard to the economic progress of the region. The managing agent of the Project is Innovációs és Technológia-fejlesztési Köpont Kht. (Innovation and Technology Development Centre, Non-profit Company), the operating organisation of the Centre, established within the frame of the Project. Arising from the nature of the Project, the implementation has been performed with the involvement of a wide range of partners; such partners were, among others, Pécsi Ipari Park Rt. (Industrial Park of Pécs, Co.), the University of Pécs, the Municipality of Baranya County, the Municipality of Pécs with County Right, the Hungarian Innovation Association, the Chamber of Commerce and Industry of Pécs-Baranya, the Association for Enterprise Promotion of Baranya County, as well as several local enterprises, interested in the successful operation of the Centre. The total budget of the Project was EUR 650,412, from which a support of EUR 540 thousand was provided by the Phare Programme. The architectural works, required for the construction and putting into operation of the Innovation and Technology Development Centre constituted the essential elements of the Project. In addition to the development of the Centre, the procurement of equipment and technical devices required for the operation of the Centre, as well as the design works required for the architectural works and the tasks of project management also formed a part of the project. 15 The established Innovation and Technology Development Centre is promoting the successful pursuance of the applied research activities on the one hand, and the utilisation of the research outputs in the operation of small and medium-sized enterprises on the other hand. In the long term, by means of the Project an improvement will occur in the role of innovative small and medium-sized enterprises, operating in the region, and consequently in the competitiveness of such enterprises. Dr. Béla Sárkány Project Manager Innovation and Technology Development Centre Kht. György Márton Project Responsible South-Transdanubian Regional Development Kht. Results: Database of enterprises dealing with material laser-work; "The Perspectives of Laser-work in Hungary" a feasibility study; building of a 1392 m 2 Innovation and Technology Centre: 14 offices, 2 workshops, related service rooms, equipment;

18 Industrial Restructuring Projects Projects in North-East-Hungary 16 Project title: FULL OPERATION OF INFRASTRUCTURE OF EXHIBITIONS IN EASTERN HUNGARY Gestor: EXPO WANDERER Exhibition and Building Ltd Phone: 42/ Address: 4400 Nyíregyháza, Színház u address: Contact person at gestor: Torma József Amount in EUR: Result: Purchase of facilities for exhibitions Regional component responsible: Kiss Ágnes RDI responsible: Veres Csilla Project title: PREPARATION, FINAL STAGE PROGRAMME OF NYÍREGYHÁZA INDUSTIRAL PARK Gestor: Municipality of Nyíregyháza City of County Rank Phone: 42/ , 42/ , 42/ Address: 4401 Nyíregyháza, Kossuth tér 1. Pf address: Contact person at gestor: Ürge László Amount in EUR: Result: Development of the industrual park's infrastructure, marketing activities Regional component responsible: Kiss Ágnes RDI responsible: Karlik Csilla, Füle Gábor Project title: RÉGIÓ-INVEST INVESTMENT INCITATION PROGRAMME Gestor: DOMA 2000 Ltd. Phone: 52/ , 52/ Address: 4026 Debrecen, Péterfia u. 4. address: Contact person at gestor: Dombi Margit Amount in EUR: Result: Exhibitions, conferences for inciting investments Regional component responsible: Kiss Ágnes RDI responsible: Veres Csilla Project title: LAYING THE FOUNDATIONS OF THE REGIONAL NETWORK OF INNOVATION CENTRES COVERING SMALL REGIONS Gestor: National Association of Small Region Development Organisations Phone: 46/ , 46/ Address: 3816 Gagyvendégi, Bátori út 9. address: Contact person at gestor: Dr. Gadóczi Bertalan Amount in EUR: Result: Development works at sites in Encs, Edelény and Napkor Regional component responsible: Kiss Ágnes RDI responsible: Korózs Lajos, Vargha Katalin Project title: INDUSTRIAL PARK DEVELOPMENT Gestor: Jászfényszaru Industrial Centre Ltd. Phone: 36-57/ , 36-57/ , 36-57/ Address: 5126 Jászfényszaru, Szabadság tér 1. address: Contact person at gestor: Versegi László Amount in EUR: Result: Industrial park development Regional component responsible: Kiss Ágnes RDI responsible: Karlik Csilla, Füle Gábor Project title: PROGRAMME PACKAGE FOR THE ORGANISATION OF SLOVAKIAN- HUNGARIAN BUSINESS DAYS Gestor: Association for Putnok and its Region Phone: 48/ , 48/ Address: 3630 Putnok, Kossuth út. 5. address: Contact person at gestor: Baloghné Pernyész Lili Amount in EUR: Result: programme package for the Slovakian-Hungarian business development Regional component responsible: Kiss Ágnes RDI responsible: Korózs Lajos Project title: ELABORATION OF GOOD QUALITY MARKETING COMMUNICATION MATE- RIAL DISPLAYING UNIFORM IMAGE ELEMENTS, IMPLEMENTATION OF INVESTMENT INCI- TATION CAMPAIGNS AND OF OTHER SPECIAL EVENTS Gestor: Association for the Co-operation in Törökszentmiklós and its Region Phone: 56/ Address: 5200 Törökszentmiklós, Kossuth L. u. 135/A. address: Contact person at gestor: Sipos Zsigmond Amount in EUR: Result: Elaboration of a marketing communication publication Regional component responsible: Kiss Ágnes RDI responsible: Veres Csilla Project title: ESTABLISMENT OF A REGIONAL WINE TRADE CENTRE IN TOKAJ Gestor: Tokaj Commercial Centre Ltd. Phone: 47/ , 47/ Address: 3910 Tokaj, Kossuth tér 1. address: Contact person at gestor: Prácser Miklós Amount in EUR: Result: Reconstruction of the Degenfeld mansion Regional component responsible: Kiss Ágnes RDI responsible: Karlik Csilla, Füle Gábor Project title: INDUSTRIAL PARK DEVELOPMENT, ACCESS ROAD CONSTRUCTION Gestor: Municipality of the city of Hatvan Phone: 37/ Address: 3000 Hatvan, Kossuth tér 2. address: Contact person at gestor: Takács Péter Amount in EUR: Result: Construction of access road to the Industrial Park Regional component responsible: Endrédi Ágnes RDI responsible: Karlik Csilla, Füle Gábor Project title: DEVELOPMENT OF PHYSICAL INFRASTRUCTURE OF THE INDUSTRIAL PARK OF FEHÉRGYARMAT Gestor: Municipality of the City of Fehérgyarmat Phone: 44/ , 44/ Address: 4900 Fehérgyarmat, Kiss E. u. 2. address: Contact person at gestor: Fábián István Amount in EUR: Result: Infrastructure development of industrial park Regional component responsible: Endrédi Ágnes RDI responsible: Karlik Csilla, Füle Gábor Project title: INVESTMENT INCITATION PROGRAMME OF NORTH EASTERN HUNGARY Gestor: Regional Development Council of Szabolcs-Szatmár-Bereg County Phone: 42/ , 42/ Address: 4400 Nyíregyháza, Hôsök tere 5. address: Contact person at gestor: Balogh Gabriella Amount in EUR: Result: Study and presentation on investment incitation Regional component responsible: Kiss Ágnes RDI responsible: Veres Csilla Project title: UNIFORM PRESENTMENT PROGRAMME FOR THE SAKE OF INCITING INVESTMENTS, BASED ON THE CO-OPERATION OF THE ENTERPRISE ZONES IN NORTH EASTERN HUNGARY Gestor: Foundation Zemplén Development Association Phone: 42/ Address: 3950 Sárospatak, Rákóczi u address: Contact person at gestor: Éberhardt Gábor Amount in EUR: Result: Investment incitation programme and conference Regional component responsible: Kiss Ágnes RDI responsible: Veres Csilla Project title: TRANSFORMATION OF THE MEETING ROOM OF THE ITC HEADOFFICE IN MISKOLC INTO A MULTIPURPOSE CONGRESS ROOM Gestor: BAZ County Municipality Phone: 30/ , 48/ Address: 3525 Miskolc, Városház tér 1. Contact person at gestor: Safarcsik Tibor Amount in EUR: Result: Reconstruction of the ITC HQ in Miskolcon Regional component responsible: Kiss Ágnes RDI responsible: Korózs Lajos

19 Project title: DEVELOPMENT OF A LOGISTICAL AND BUSINESS CENTRE IN THE ENTERPRISE ZONE OF ZÁHONY AND ITS REGION Gestor: Záhony and its Region Development Ltd. Phone: 42/ , 42/ Address: 4400 Nyíregyháza, Szarvas u address: Contact person at gestor: Éberhardt Gábor Amount in EUR: Result: Implementation and furnishing of a logistical and business centre Regional component responsible: Kiss Ágnes RDI responsible: Veres Csilla Project title: Economic development programme of the Bihar region, implementation of the infrastructural investments connected with the development of the industrial park of the Bihar region, phase 1 Gestor: League of the Associations of the Municipalities in Bihar Phone: 54/ , 52/ , 54/ , 52/ Address: 4100 Berettyóújfalu, Kossuth Lajos u. 6. address: Contact person at gestor: Kocsis László Amount in EUR: Result: Development of the infrastructure of the industrial park Regional component responsible: Kiss Ágnes RDI responsible: Veres Csilla Project title: INNOVATION AND TECHNOLOGY CENTRE TO BE IMPLEMENTED WITHIN THE AREA OF THE INDUSTRIAL PARK OF EGER Gestor: INNTEK Public Non-profit Company for Innovation and Technological Centre Phone: 36/ Address: 3300 Eger, Kocsis Bernát u.3. address: Contact person at gestor: Zeleiné Bencsik Edit Amount in EUR: Result: Construction of Innovation Centre Regional component responsible: Kiss Ágnes RDI responsible: Karlik Csilla Korózs Lajos Project title: INVESTMENT INCITATION PROGRAMME OF THE ENTERPRISE ZONE OF ZEMPLÉN Gestor: Foundation for Enterprise Development in the Zemplén Region Phone: Address: 3980 Sátoraljaújhely, Rákóczi u address: Contact person at gestor: Plébánné Dankó Beáta Amount in EUR: Result: Implementation of an investment incitation programme and conference Regional component responsible: Kiss Ágnes RDI responsible: Korózs Lajos Project title: THE REGION IN A BRIEF-CASE Gestor: Borsod-Abaúj Zemplén County Regional Development Council Phone: (46) , 46/ , (46) Address: 3525 Miskolc, Városház tér 13. address: Contact person at gestor: Huszti Gábor Amount in EUR: Result: programme package for presenting the region Regional component responsible: Kiss Ágnes RDI responsible: Korózs Lajos Project title: RETINA IMPLEMENTATION OF A TECHNOLOGICAL AND INNOVATION DATA CENTRE BASED ON REGIONAL CO-OPERATION Gestor: Association of the settlements of Zemplén Phone: 47/ , 47/ Address: 3916 Bodrogkeresztúr, Kossuth u. 85. Contact person at gestor: Májer József, Kubus János Amount in EUR: Result: Development of a technological and innovation data centre Regional component responsible: Kiss Ágnes RDI responsible: Vargha Katalin Phone: 36/ Address: 3300 Eger, Kossuth L u. 9. address: Contact person at gestor: Kiss János Amount in EUR: Result: Preparation of a publication on investment incitation, organising conferences Regional component responsible: Kiss Ágnes RDI responsible: Korózs Lajos Project title: REGIONAL LOGISTIC CENTRE Gestor: ÁTI DEPO Public Warehousing CO Phone: 1/ Address: 1151 Budapest,Visonta u. 1. address: Contact person at gestor: Szakács Zsolt Amount in EUR: Result: Implementation of a regional logistic centre Regional component responsible: Kiss Ágnes RDI responsible: Karlik Csilla, Füle Gábor Project title: DEVELOPING THE SCIENTIFIC AND TECHNICAL PARK OF DEBRECEN INTO A REGIONAL TECHNOLOGICAL AND INNOVATION CENTRE Gestor: University Association of Debrecen Phone: 52/ Address: 4032 Debrecen, Egyetem tér 1. address: Contact person at gestor: Baloghné dr. Bokor Zsuzsanna Amount in EUR: 260,240 Result: Development of the facilities of the University's technical park Regional component responsible: Kiss Ágnes RDI responsible: Veres Csilla Project title: IMPLEMENTATION AND DEVELOPMENT OF THE INDUSTRIAL PARK IN DEBRECEN Gestor: Municipality of Debrecen City of County Rank Phone: 52/ , 52/ Address: 4024 Debrecen, Piac u address: Contact person at gestor: Percze István Amount in EUR: Result: Industrial park development Regional component responsible: Kiss Ágnes RDI responsible: Karlik Csilla, Füle Gábor Project title: PREPARATION OF THE REAL ESTATE CADASTRE OF THE TERRITORY OF THE ENTERPRISE ZONE OF SALGÓTARJÁN-BÁTONYTERENYE Gestor: Association of the regional municipalities of Salgótarján and Bátonyterenye Phone: 32/ Address: 3100 Salgótarján, Városháza, Múzeum tér 1. address: Contact person at gestor: Fodor Tibor Amount in EUR: Result: Preparation of a land registry Regional component responsible: Kiss Ágnes RDI responsible: Korózs Lajos Project title: DEVELOPMENT OF AN INTERNATIONAL TRADE AND INNOVATION CENTRE Gestor: KRF Regional Development Co. of Central Hungary Phone: 32/ , 32/ Address: 3100 Salgótarján, Alkotmány út 9. address: Contact person at gestor: Mihályné Balázs Melinda Amount in EUR: Result: Implementation and furnishing of the International Trade and Innovation Centre Regional component responsible: Kiss Ágnes RDI responsible: Korózs Lajos 17 Project title: INVESTMENT POSSIBILITIES IN HEVES COUNTYI Gestor: Heves County Municipality

20 Projects in South-Transdanubia Project title: INNOVATION AND TECHNOLOGICAL CENTRE IN TAMÁSI Gestor: Municipality of the City Tamási Phone: 74/ Address: 7090 Tamási, Szabadság út address: Contact person at gestor: Gulyás Tibor Amount in EUR: Result: Implementation of innovation and technological centre with office and computer technical facilities in Tamási Régió komp.felelôs: Márton György, Gelencsér Alida, Csomor Gusztáv RDI responsible: Karlik Csilla, Füle Gábor Project title: IMPLEMENTATION OF KAPOS INNOVATION TRANSFER CENTRE WITHIN THE INDUSTRIAL PARK DOMBÓVÁR KAPOSSZEKCSÔ Gestor: Kapos Public Non-profit Company for Innovation Transfer Phone: 74/ Address: 7361 Kaposszekcsô, Táncsics u address: Contact person at gestor: Hônyi Pál Amount in EUR: Result: Construction and furnishing of Kapos Innovation Transfer Centre, strategic programme of info-communication Regional component responsible: Márton György RDI responsible: Karlik Csilla, Füle Gábor Project title: IMPLEMENTATION OF INNOVATION AND TECHNOLOGICAL DEVELOPMENT CENTRE Gestor: Public Non-profit Company for Innovation and Technology Development Phone: 72/ Address: 7629 Pécs, Buzsáki u address: Contact person at gestor: Dr. Sárkány Béla Amount in EUR: Result: Construction of innovation and technological development centre with technical facilities and laboratory devices Regional component responsible: Márton György RDI responsible: Karlik Csilla, Füle Gábor 18

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