One of the central issues for Hungary's technology competitiveness is that, despite strong universities and qualified professionals, relatively few homegrown, globally competitive technologies or products emerge — this was a common theme at the technology panel of Portfolio's Back to Europe conference.
Panelists pointed to heavy talent outflow as a defining problem in the local IT sector. Hernádi József, managing director of Atos Magyarország, said the spread of remote work has amplified that trend: many capable Hungarian specialists have either moved abroad or work from Hungary for foreign companies.
Market distortions and the effect of fast-growing firms
Hernádi noted market-distorting effects in recent years: some companies grew extremely quickly on non-classical market bases and attracted specialists away from competitive market players with high salaries. As a result, the domestic ecosystem struggled to build long-term, locally rooted development projects.
Lack of an independent Hungarian tech sector
Kuthy Antal, CEO of E-Group ICT Software, put it more sharply: he believes Hungary has been repeating the same patterns for 30 years. "I think we've been singing the same song for 30 years," he said. While Hungary produces strong graduates and talent, many go to work for multinational firms, and an independent Hungarian technology sector that produces globally significant products has not emerged. There are domestic development centers and subsidiaries of multinationals, but that is not the same as a nation creating its own exportable technologies.
Europe's capital gap and AI adoption as an opportunity
The panel also discussed Europe's position. Hernádi argued that, measured by available capital for AI, Europe is clearly behind the United States. At the same time, he suggested that practical AI adoption could be a breakout opportunity for the continent: proportionally many European companies already use AI, and the critical question is not necessarily which model they choose but how they integrate it into processes.
Kuthy warned that AI usage alone does not equal technological independence. He cautioned that "it sounds good that 21 percent use AI," but if the underlying technology is American, much of the resulting money will flow out of Europe. From this perspective, strategic autonomy is required: if you do not have your own technology while others (he referenced the U.S. and China) do, Europe will remain in a dependent position in the long run.
Still, Kuthy rejected the notion of writing off European AI efforts: he said "we are at the first millimetre of AI," and the development path could be very long, so it is too early to conclude Europe should not participate in the technological competition.
The Hungarian challenge: retaining thinkers and ensuring continuity
Kuthy argued that Hungary's major task is whether it can keep in the country those people who have "big ideas" and give them sufficient time and continuity to turn those ideas into real technology. Technological progress needs trust and continuity; if projects or professional communities are repeatedly interrupted, it is difficult to produce world-class products.
Hernádi added that Atos Magyarország did not experience significant negative effects in terms of rejection by European partners. As a Hungarian consortium leader they were able to involve major European actors in multimillion-euro projects, which he attributed in part to trust in Atos.
Reputation effects of exclusion from Horizon Europe
Moderator Szabó Dániel recalled that public discourse often conflated the exclusion of certain model-changing universities with a broader assumption that Hungarian actors were generally unable to participate in the Horizon Europe program. Kuthy said this had reputational effects: among some foreign partners a question arose whether including a Hungarian company might cause problems in a consortium. That perceived uncertainty sometimes acted as an impediment.
Conclusions
Panelists emphasized that although Hungary has the intellectual base, the challenges are retaining talent, financing long-term projects, and building technological autonomy. AI adoption can be an escape route, but usage alone cannot replace the lack of indigenous technology and capital. The discussion concluded that trust, continuity and a strategic approach are needed for Hungary to produce genuine, exportable technologies.
