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Hungary’s innovation strategy: funding boosts, HUN-REN overhaul and reviews from space projects to 4iG contracts

The Hungarian government outlined a dynamic innovation strategy that includes multi‑billion‑forint packages for water‑retention and university infrastructure, changes to the national research network (HUN‑REN) and targeted reviews of major projects and contractors.

Hungary’s innovation strategy: funding boosts, HUN-REN overhaul and reviews from space projects to 4iG contracts

The Hungarian government presented new elements of its innovation strategy, including multi‑billion‑forint packages for water retention and drought‑mitigation research and roughly HUF 50 billion for university and research infrastructure. At a background briefing, Zoltán Tanács, Minister for Science and Technology, and Péter Horváth, State Secretary for Science Policy and Innovation, outlined priorities such as settling the legal status of the national research network (HUN‑REN), reviewing major projects and contracts, and updating the space and AI agendas.

The strategy and the research network

The strategy is described as dynamic and subject to change based on experience. The ministry is negotiating with the Ministry of Justice and the Ministry of Finance about HUN‑REN’s legal status. Two central questions remain:

  • whether the entire network should return under the state budget or remain a distinct legal entity with autonomous governance and financial authority, and
  • what legal status research centres should have: retain the existing structure for faster legislation, or introduce a new model under which research centres become independent legal entities. The long‑term aim is for research centres to become autonomous legal persons.

Horváth stressed that the leadership and governing bodies of the network have not yet been audited because the previous law created protections so strong that, in his view, even the prime minister could not dismiss the network’s head. He said an audit would be possible only after the president resigns and a new HUN‑REN law is adopted.

The network’s troubled recent history is well documented: in 2019 the institutions formerly under the Hungarian Academy of Sciences (MTA) were detached, 2020 saw the removal of civil servant status from employees, and 2021 brought further institutional restructuring. Gulyás Balázs became ELKH president on 1 May 2023, the network was renamed HUN‑REN on 1 September 2023, and in summer 2025 the humanities and social science institutes were separated against their will and attached to Eötvös Loránd University (ELTE).

Humanities and social sciences: integration into excellence systems

The ministry is focusing on the humanities largely because they were detached from HUN‑REN under the prior arrangement and are seen as neglected domestically. The intention is to integrate humanities and social sciences into the excellence and innovation system. Horváth noted the difficulty of performance measurement across disciplines — for example, comparing an experimental physician to a historian — and said the system must be rethought. There will be general institutional indicators and specialised indicators tailored to humanities and social science fields.

Funding: NKKP, Élvonal Foundation and the CMF

The ministry intends to keep the National Research Excellence Programme (NKKP, the successor to OTKA) and regards the system positively. The government will double the budget for it while acknowledging researcher criticism of perceived centralisation and reduced transparency under the Károly Krausz‑led model. Hegyi Péter said the aim is a more open evaluation cycle and clearer reviewer identities; so far, the ministry has not found scandalous or justice‑seeking problems with NKKP.

Regarding Krausz Ferenc and the Élvonal Alapítvány, Tanács said the government agrees with the foundation’s core goals but not its implementation. Previously published figures show the foundation received HUF 261.7 billion in state funding over six years and reportedly entered into a framework contract worth about one thousand billion forints over 25 years; its supervisory board contains politically connected appointees.

The Molecular Fingerprint Research Centre Nonprofit Ltd. (CMF) — using ultrashort‑pulse laser technology to analyse changes in blood plasma composition — will be transferred under the Ministry of Science and Technology. The CMF previously received HUF 45 billion in state support. The ministry has requested a scientific review from Hungarian and international researchers via the MTA to assess the project’s scientific merit. If experts judge the CMF’s goals feasible and valuable, financing would continue; it is still undecided whether CMF would operate as an independent centre or be integrated into the research network.

Krausz and the Frontiers Campus

Both ministers said they expect Krausz Ferenc to play a role in Hungarian science. Tanács described Krausz as an outstanding researcher committed to training young scientists and said the government is ready to consult if Krausz is willing. The Frontiers Campus project has uncertain prospects: Horváth said earthworks have begun but whether the result will be only a partial structure (e.g., an underground garage) or a full campus remains to be decided in the coming months.

Audit of 4iG and space contracts

Tanács announced an audit of 4iG Nyrt. covering transactions and contractual relations. The government ordered a review of owner, financial, economic and contractual links between 4iG and companies it directly or indirectly controls. Tanács pointed out that 4iG grew with strong state support, including state loans and contracts, and that state involvement is significant.

He singled out space industry agreements as a major item: they represent about EUR 2.3 billion in commitments through 2040, roughly HUF 820–850 billion. Tanács said some of these contracts appear highly disadvantageous and may not serve the Hungarian state’s interests. In addition, IT‑type contracts with the 4iG group amount to approximately HUF 200 billion. A full audit is time‑consuming, but the government expects to have clearer guidance within weeks on which agreements to continue and which to terminate.

The stated aim is not to cripple companies but to ensure the state obtains services at fair price‑performance ratios.

Space policy

The minister said the space sector must be taken seriously as one of the most resilient and fastest‑growing industries with potential for significant returns. Tanács noted the symbolic value of Kapu Tibor’s spaceflight: while he questioned whether it paid off financially — “it cost many tens of millions of dollars” — he acknowledged its immeasurable effect in promoting the topic nationally and inspiring young people. He added that sending astronauts is not the immediate task; instead the government wants to support roughly one hundred domestic SMEs active in the space sector and build supplier networks able to integrate into the European space industry. The space strategy is due to be updated by the end of the year.

Previously the minister said the country could even create its own space agency and that Kapu Tibor had been considered for leadership of parts of the space programme.

Industrial policy, battery and automotive industries

A key strategic aim is to attract R&D divisions of large companies rather than just assembly plants. That does not mean abandoning current industrial policy: domestic capacities remain important in battery and automotive sectors. Tanács called the battery industry a major challenge and criticised previous policy for rushing projects and tolerating environmentally harmful practices backed by significant state subsidies. By contrast he praised the automotive sector’s high value‑added activities and domestic supplier networks as a model Hungary can realistically follow.

AI and cybersecurity

The government sees the rapid development of AI models as a major challenge. Tanács expects systems capable of PhD‑level knowledge to emerge in the coming years, and wants senior‑level engagement within government. The intention is to hold direct talks with major tech firms such as Google and Anthropic about using cutting‑edge technologies in state administration.

Cybersecurity will be reorganised: the current landscape is too fragmented and should move toward a more unified agency and organisational approach that connects domestic and international capacities, enabling faster responses. The ministers warned, however, that the most powerful AI models are not necessarily the best defence tools, since they are expensive and can produce many false positives.

Conclusion

Hungary’s innovation strategy combines increased funding for targeted research and infrastructure, legal and structural reforms for the national research network, scientific reviews of controversial projects, and audits of major contractors. Decisions on HUN‑REN’s legal status, the roles of Élvonal and CMF, the outcomes of the 4iG audit, and the shape of future space and AI policies will determine how the strategy unfolds over the coming months.