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Startup

Budapest is at the international forefront of emerging startups

State funding for RD&I has already exceeded HUF 700 billion, over twice as much as in 2010.

As MTI reported, the total estimated value of the Budapest startup ecosystem has increased about 1.5 times, to over HUF 200 billion, in just one year, according to the latest analysis of the Global Startup Ecosystem Report.

The report highlights that a significant amount of early investments have been made in startups in recent years thanks to the initiating role of the state, the Ministry of Innovation and Technology told MTI.

The summary analysis of the Global Startup Ecosystem Report, published annually by Startup Genome, compares and evaluates 250 locations around the world. The 2021 report puts Budapest at the forefront of emerging cities internationally. It mentions Hungarian performance in the field of artificial intelligence and financial startups as a sectoral strength. Another important advantage is the availability of a highly qualified workforce in the fields of science and technology with up-to-date practical knowledge. 

Hungary’s central geographical location, the ability to establish a company fast, the low corporate tax, and the low cost of living associated with a high quality of life also explain the growing popularity of Hungary in the startup world. The report further lists AImotive, Europe’s largest self-driving vehicle development company, software technology developer Bitrise, electronic payment solution provider Barion, and Codecool educational startups among the prominent companies.

The Ministry of Innovation and Technology and the National Office for Research, Development and Innovation started working jointly on international research at the end of 2020. The cooperation aims to make the fast development of the domestic startup ecosystem visible to foreign innovators and investors as well.

“The Ministry of Innovation and Technology and the National Office for Research, Development and Innovation have contributed to boosting Hungarian startup life with outstanding policy and significant tender funding. 2,100 students took part in the national university-level training launched last year. The Hungarian Startup University Program continued with the participation of 26 higher education institutions from September this year,” Tibor Gulyás, Deputy Secretary of State for Innovation, said.

Gulyás pointed out that the government is constantly increasing the amount of research and development and innovation (RDI) expenditures, which has already exceeded HUF 700 billion. The amount of resources surpassed so far is well over twice as much as in 2010. In 2021, a total of HUF 182 billion is available for RD&I tenders. In addition, targeted state programs also encourage the further expansion of the Hungarian startup scene, which employs 20,000–25,000 highly qualified professionals. 

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