West Transdanubia

Region and Regional RTD Policy

West Transdanubia (also known as West Pannonia) is a dynamic region that ranks second – after the Central Hungarian Region (Budapest) – in terms of economic growth and innovation capacities in Hungary. The main task for the regional RTD policy is to help overcome the dual character of the region's economy: on the one hand large, strongly export-oriented, usually foreign-owned companies and, on the other, mostly domestic SMEs producing mainly for the home market. There is almost no interaction between the two in the sense of economic and knowledge exchanges.

The current economy relies on attracting foreign capital for low complexity production using low-cost labour performing simple tasks. A new innovation-driven economic development model is needed based on competitively priced skilled labour force developing and producing complex products, continuous innovation, the attraction of further companies as well as the development of R&D and innovation oriented companies within the region.

In Hungary West Transdanubia is considered a pioneer in the issue of clusterization. In 2000 the Pannon Automotive Cluster (PANAC) was founded as a pilot project with high-level involvement by the national government. In the same year, the national level took the initiative with the Szechenyi-Plan (2000), including a regional clusters subprogram. In 2001 a Regional Innovation Strategy Program (RIS) was elaborated by the regional policy makers, based on a Regional Development Program. This RIS identified five sectors for future clustering activities, including the automotive cluster.

Further information: www.westpa.hu and www.pannonnovum.hu


West Transdanubia's Pilot Cluster: Automotive

The Pannon Automotive Cluster (PANAC) is the relevant network organisation for West Transdanubia 's automotive cluster. PANAC is an innovative cooperative network of enterprises and organizations with interest in the car industry based on mutual benefits organized on a voluntary basis. Founded in December 2000, it marked the start of national and regional involvement in cluster strategies. Founding members were the five biggest automotive companies (Audi, Opel, Suzuki, LuK Savaria and Ràba Automotive), financial (Citibank) and advisory service providers (Consulting & Research for Industrial Economics) and the West Transdanubian Regional Development Council. It now has about 70 members (multinational companies and SMEs representing different levels of the automotive supply chain and research institutions). The co-ordination office is a division of the regional development agency WPRDA.

The objective of PANAC is to create a cooperative network of automotive enterprises in the region and to foster the development of inter-firm collaboration. Due to the economic structure specific attention is given to the establishment of new supplier links, improvements in supplier capabilities and quality and innovation activities of the involved companies. Important tasks of PANAC are to support regional SMEs with supplier potential to improve their position, providing opportunities for professional support and quality training, to initiate and stimulate collaborative projects, to encourage companies' innovation processes and to provide public relation for the cluster's activities. Cluster members benefit for specific information and communication services (e.g. via the PANAC internet portal).

Further information: www.autocluster.hu