Budapest’s prominent role in Hungarian R&D activity: Evidence from higher education and basic research funding

Turcsán, Zsolt and Szabó, Pál Péter (2027) Budapest’s prominent role in Hungarian R&D activity: Evidence from higher education and basic research funding. MODERN GEOGRÁFIA, 22 (1). pp. 109-130. ISSN 2062-1655 (In Press)

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Abstract

In Hungary, research and development (R&D) activities are highly concentrated in the capital due to sector-specific requirements. This phenomenon enhances Budapest’s competitiveness at the European level and supports sectoral objectives, while simultaneously widening the gap between the capital and the rest of the country. This study examines the development and characteristics of R&D concentration, with a particular focus on higher education and government-sector research, assesses its advantages and disadvantages, and analyses its representation in Hungarian policy documents. Using international rankings and Eurostat R&D statistics, the research confirms Budapest’s favourable position in the European context. The historical development of this concentration has already been described in the relevant literature. An analysis of Hungarian regional R&D data from 2005 to 2024 demonstrates the capital’s growing advantage within the country. This concentration is also reflected in the allocation of Hungarian basic research grants, formerly OTKA and later NKKP. Although major university cities outside the capital do not provide a sufficient counterbalance, their participation in OTKA projects occasionally exceeds Budapest’s share. Our examination of development policy documents revealed a divergence in approaches: sectoral documents largely ignore the issue, whereas national territorial development policy seeks to reduce concentration. In contrast, the capital’s development strategies do not include such objectives, as a strong R&D presence is consistent with Budapest’s interests.

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