the legal entity, business company with no legal personality, other entity with no legal personality, private individual or any group of persons requesting public funding by submitting a project proposal

the analytical examination of the actual results, the consistency of available resources and original goals, the socio-economic use of the results and the impacts of utilisation with the aim of ensuring the effective utilisation of public funds. Assessment can focus on strategies, institutions, organisations and programmes and can take the following forms:

• ex-ante assessment
  
• mid-term assessment
  
• ex-post assessment
  
• ongoing assessment
  

areas designated in an approved regional aid map for the period 1 July 2014 and 31 December 2020 in application of Articles 107(3)(a) and (c) of the Treaty

a business company not completely consolidated, in which the parent company (see there) or a consolidated subsidiary (see there) thereof has a substantial share (as defined in an Act) and exercises considerable influence (as defined in an Act) over the business and financial policy of the business company

any enterprise which is not classified as a partner enterprise or as a linked enterprise

an analysis and planning method: the qualitative and quantitative comparison of a procedure with another procedure which qualifies as the best in a similar field. In the field of RDI it enables the analysis of key processes, the elimination of mistakes and the improvement of performance for example through best practices

reference: Investment in the future– National Research and Development and Innovation Strategy (2013–2020)

• aid for research and development projects
  
• investment aid for research infrastructures
  
• de minimis aid
  

reference: Commission Regulation (EU) No 651/2014

a business philosophy and behaviour according to which the companies – beyond complying with their legal obligations – consider the interests of society by having regard to effect of their activities on their business partners, suppliers, employees, shareholders and also the environment

Budapest-based independent EU body; its aim is to enhance the innovation capacity of the EU and the member states to promote economic growth, job creation and addressing societal challenges

refernce: https://ec.europa.eu/education/initiatives/european-institute-innovation-technology_hu

a tool for correcting imbalances between the regions of the European Union, focusing its investments on addressing the economic, environmental and social problems of urban areas (spending at least 5% of its resources on urban development) and on supporting regions that are naturally disadvantaged from a geographical viewpoint

reference: http://ec.europa.eu/regional_policy/hu/funding/erdf/

• more efficient national research systems
  
• optimal cooperation and competition between nations (including the joint tackling of socio-economic challenges and the development of research infrastructures)
  
• open labour market for researchers
  
• the promotion of gender equality in research
  
• optimisation of the flow of, access to and utilisation of scientific knowledge
  

a main instrument of the European Union which invests in human capacity through various actions and projects such as the development of educational systems, the promotion of equal opportunities in the labour market and the facilitation of entrepreneurship

reference: http://ec.europa.eu/esf/main.jsp?catId=35&langId=hu

a document preparing the evaluation process (see there) containing at least the following minimum elements: the objectives of the aid scheme to be evaluated, the evaluation questions, the result indicators, the envisaged methodology to conduct the evaluation, the data collection requirements, the proposed timing of the evaluation including the date of submission of the final evaluation report, the description of the independent body conducting the evaluation or the criteria that will be used for its selection and the modalities for ensuring the publicity of the evaluation

the examination of the efficiency of RDI programmes and the adequacy of instruments recommended for reaching the objectives based on situation analysis
see also: assessment

• activities aiming at the conceptual definition, planning and documentation of new products, processes or services;
  
• prototyping, demonstrating of new or improved products, processes or services;
  
• piloting, testing and validation of such products in environments representative of real life operating conditions where the primary objective is to make further technical improvements on products, processes or services that are not substantially set
  
• the development of a commercially usable prototype or pilot which is necessarily the final commercial product and which is too expensive to produce for it to be used only for demonstration and validation purposes
  

Experimental development does not include:
routine or periodic changes made to existing products, production lines, manufacturing processes, services and other operations in progress, even if those changes may represent improvements

experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any direct commercial application or use in view
synonym: discovery research, basic research

reference: Commission Regulation (EU) No 651/2014

organizations belonging to the central and local government subsystem of public finances

reference:  Act C of 2000 on accounting

staff having a tertiary education degree and at least 5 years of relevant professional experience which may also include doctoral training

a business company in which the undertaking does not exercise considerable influence, and which is not classified as a subsidiary, joint undertaking or associated enterprise

reference: Act C of 2000 on accounting

• input indicators
  
• output indicators
  
• result and impact indicators
  

aid awarded to individual beneficiaries on the basis of an aid scheme or ad hoc aid (i.e. aid not awarded on the basis of an aid scheme)

reference: Commission Regulation (EU) No 651/2014

the planned research or critical investigation aimed at the acquisition of new knowledge and skills for developing new products, processes or services or for bringing about a significant improvement in existing products, processes or services
see also: experimental development; research and development

reference: Commission Regulation (EU) No 651/2014

structure or organised group of independent parties (such as innovative start-ups, small, medium and large enterprises, as well as research and knowledge dissemination organisations, non-for-profit organisations and other related economic actors) designed to stimulate innovative activity through promotion, sharing of facilities and exchange of knowledge and expertise and by contributing effectively to knowledge transfer, networking, information dissemination and collaboration among the undertakings and other organisations in the cluster

a funded instrument which enables micro, small and medium enterprises to purchase the knowledge and consultation services required for their current projects so facilitating the knowledge flow (see there) between enterprises as buyers and knowledge centres as suppliers (a scheme first introduced in the Netherlands in 2004 then in Ireland in 2006)

reference: Investment in the future– National Research and Development and Innovation Strategy (2013–2020)

• which can prove by means of an independent expert’s assessment report that in the foreseeable future it can develop a product, service or process which is new or which significant improves the state-of-the-art industrial technology but which also runs the risk of technological or industrial failure; or
  
• where research and development costs account for at least 10% of the operating costs in at least one year during the three years preceding the provision of the aid
  

assets that do not have a physical or financial embodiment such as patents, licences, know-how or other intellectual property

a business company in which, on the one hand, the parent company (or the consolidated subsidiary of the parent company), and on the other hand, one (or several) other undertaking(s), have the rights defined in an Act on an equal basis, with at least 33 per cent voting rights. A joint undertaking is directed jointly by the owners.

new cooperation models developed and tested by the European Institute of Innovation and Technology (EIT) in relation to how innovation is approached, managed, financed and delivered in Europe

reference: https://ec.europa.eu/education/initiatives/european-institute-innovation-technology_hu

diffusion of the accumulated knowledge in the institutional and corporate network and in the broader economy for the purpose of maximum utilization

an initial investment project or an initial investment project directed at the pursuit of a new economic activity where the present value of eligible expenditure exceeds the HUF equivalent of EUR 50 million, in view of the aggregation rule

• an enterprise has a majority of the shareholders’ or members’ voting rights in another enterprise; 
  
• an enterprise has the right to appoint or remove a majority of the members of the administrative, management or supervisory body of another enterprise; 
  
• an enterprise has the right to exercise a dominant influence over another enterprise pursuant to a contract entered into with that enterprise or to a provision in its memorandum or articles of association;
  
• an enterprise, which is a shareholder in or member of another enterprise, controls alone, pursuant to an agreement with other shareholders in or members of that enterprise, a majority of shareholders’ or members’ voting rights in that enterprise.
  

the application of new marketing methods that significantly change the design, packaging, positioning, advertising or pricing of a product

reference: OECD OSLO manual

personal consulting relationship where the mentors – usually persons in managerial capacities – support the professional development of their protégés with their skills, experiences and connections

• total staff headcount is less than 10, and
  
• annual net sales revenue or balance-sheet total is no more than the HUF equivalent of EUR 2 million
  

see also: micro, small and medium enterprises

any company whose

• total staff headcount is less than 250, and
  
• annual net sales revenue is no more than the HUF equivalent of EUR 50 million or balance-sheet total is no more than the HUF equivalent of EUR 43 million
  

see also: micro enterprise, small enterprise

a strategic community of interests of the R&D and economic sector. Its aim is to boost the professional and business development and enhance the competitiveness of the given area of the national economy

a geographical nomenclature created by the EUROSTAT subdividing the economic territory of the European Union into regions at three different levels (in Hungary the 19 counties and the capital are at NUTS 3 level which are organised into seven larger planning and statistical NUTS 2 regions)

reference: http://regionalispolitika.kormany.hu/nuts-rendszer

the research infrastructure of a laboratory operating at a public research facility or a large company, and the associated research services, that can be used by anyone (ranging from private individuals through private entrepreneurs to SMEs) on a commercial basis, enabling an optimized access to equipment where new technologies, products and services can be developed

an international organisation whose aim is to support the governments of the member states in developing and evaluating the best possible economic and social policies. The organisation has accumulated enormous knowledge and skills since its foundation in 1984 that are shared among the members states through professional directorates (research and development e.g. through the Directorate for Science, Technology and Industry).

the implementation of a new organisational method in an undertaking's business practices, workplace organisation or external relations, excluding changes that are based on organisational methods already in use in the undertaking, changes in management strategy, mergers and acquisitions, ceasing to use a process, simple capital replacement or extension, changes resulting purely from changes in factor prices, customisation, localisation, regular, seasonal and other cyclical changes and trading of new or significantly improved products

for the purposes of the Accounting Act, any organisation other than an undertaking or government agency:

·     associations, foundations

·     public corporations, public foundations

·     housing co-operatives, condominiums

·     law firms, patent agencies, bailiff’s offices, and notary’s offices

·     Media Service Support and Asset Management Fund

·     Credit cooperatives Integration Organization

·     collective management organisations

·     employee shareholder programme organisations

·     public water utility companies

·     church legal entities

·     investment funds, other funds

·     the stock exchange, organisations pursuing central depository or Central Counterparty (CCP) activities

·     private pension funds

·     voluntary pension funds

·     voluntary mutual health and mutual aid funds

·     public warehouses

other organisations with legal personality as defined in separate laws

reference: Act C of 2000 on accounting

in relation to R&D projects, unless otherwise defined in the call for proposals: the typical public utility charges, phone charges (prepaid only) and laboratory or office rents related to the project

it meets at least one of the following conditions:

• based on its ownership percentage in the share capital, it solely controls the majority (in excess of 50 per cent) of the votes of the owners (shareholders), or
  
• it solely controls the majority of votes based on agreement with the other owners (shareholders), or
  
• in its capacity as an owner (shareholder) of the company, it is entitled to elect or dismiss the majority of executive employees or members of the supervisory board, or
  
• based on a contract concluded with the owners (shareholders), or a provision of the deed of foundation, it exercises decisive direction and control, irrespective of its percentage in the share capital, voting ratio and the right to elect and dismiss executive employees
  

reference: Act C of 2000 on accounting

nterprises not classified as linked enterprises within the meaning of the relevant EU regulation and between which there is the following relationship: an enterprise (upstream enterprise) holds, either solely or jointly with one or more linked enterprises within the meaning of paragraph 3, 25 % or more of the capital or voting rights of another enterprise (downstream enterprise)

an international treaty which enables applicants to request a patent for the same invention in more than one designated member states by filing a single international patent application (Hungary has been member since 1980; in Hungary PCT application can be filed with the Hungarian Patent Office)

reference: https://www.sztnh.gov.hu/hu/patent-cooperation-treaty-szabadalmi-egyuttmukodesi-szerzodes

the implementation of a new or significantly improved product or service which – in terms of its characteristics and function – incorporates the detailed technical specifications of development, components and materials, built-in software, the property of being user-friendly and other functional properties

reference: The OSLO manual

the implementation and impacts of programmes and projects with the aim of improving efficiency and providing information for present and future programming decisions

reference: The Programming Period 2014–2020: Guidance document on monitoring and evaluation – Concepts and Recommendations

an administrative procedure conducted by the Hungarian Patent Office upon request with the aim of qualifying a project activity as research and development activity

the system comprising all organisations responsible for establishing and operating the regulatory conditions and policy management system of research, development and innovation activities (RDI) and the related tasks

an area of policy-making. It aims to review and supervise (contain and control by taking into account the ethical norms and long-term real values-interests of society) a specific field and make the decision related to this field and implement and control the measures aimed at the implementation of these decisions

an entity (such as universities or research institutes, technology transfer agencies, innovation intermediaries, research-oriented physical or virtual collaborative entities), irrespective of its legal status or way of financing, whose primary goal is to independently conduct fundamental research, industrial research or experimental development or to widely disseminate the results of such activities by way of teaching, publication or knowledge transfer. Where such entity also pursues economic activities the financing, the costs and the revenues of those economic activities must be accounted for separately. Undertakings that can exert a decisive influence upon such an entity, in the quality of, for example, shareholders or members, may not enjoy preferential access to the results generated by it

a (natural) person who deals with the creation or development of new knowledge, intellectual property, product, service, procedure, method, or system, or controls the implementation of such projects

the estimated value of an asset which can be realised at the end of its useful economic life (see there), as determined at the time when commissioned or placed into operation based on the information available. The residual value can be zero if its estimated value is insignificant.

• has not been in regular paid employment for at least 24 months; or
  
• has not been in regular paid employment for at least 12 months and belongs to one of the categories mentioned under the definition of ‘disadvantaged worker’ (see there) in the relevant law (other than the first criterion)
  

employment in an undertaking where at least 30% of workers are workers with disabilities

• total staff headcount is less than 50, and
  
• annual net sales revenue or balance-sheet total is no more than the HUF equivalent of EUR 10 million
  
  

see also: micro, small and medium enterprises

a place-based approach where strategic areas for intervention are identified in order to promote the optimal utilisation of development sources based both on the analysis of the strengths and potential of the economy with wide stakeholder involvement, and where the utilisation of sources are constantly adapted to the changing technological and market environment

reference: http://s3platform.jrc.ec.europa.eu/what-is-smart-specialisation-

(term used in statistics) the number of persons who worked full-time within the enterprise in question or on its behalf during the entire reference year under consideration. The headcount corresponds to the number of annual work units (AWU). The work of persons who have not worked the full year, the work of those who have worked part-time, regardless of duration, and the work of seasonal workers are counted as fractions of AWU.

reference: Commission Regulation (EU) No 651/2014

the central coordinating body responsible for a competition-minded state aid control, supervised by the deputy secretary of state responsible for development policy of the Prime Minister’s Office

the business company over which the parent company (see there) can exercise controlling influencethe business company over which the parent company (see there) can exercise controlling influence

assets consisting of land, buildings and plant, machinery and equipmentassets consisting of land, buildings and plant, machinery and equipment

a business company not completely consolidated, in which the parent company (see there) or a consolidated subsidiary (see there) thereof has a substantial share (as defined in an Act) and exercises considerable influence (as defined in an Act) over the business and financial policy of the business company

the duration over which an economic entity (see there) is allowed to depreciate an asset prorated by a predetermined time or performance schedule (in view of inter alia physical wear, production capacity, feasible performance or other factors) and charged to its profit and loss account

utilisation as an enterprise for business purposes in the hope for economic benefit; and utilisation for community benefit improving the standard of living of citizens and the quality of public services, protecting natural and built environment, promoting the sustainable development of the country, and improving the defence capability and security of the country

all payments related to the financial year as remuneration to employees, workers and members in accordance with legal regulations, including the amount withdrawn as consideration for the personal involvement of the owner (member) as a natural person, the sums paid for work - and accounted as such - to persons in any form of employment relationship for the financial year (including any premiums and bonuses and extra monthly salaries paid and accounted after the financial year) all constituents of which can be considered as wages according to statistical accounts, regardless of whether or not personal income tax is due on such payments, and whether or not they form a base for social security payments

reference: Act C of 2000 on accounting

• is recognised as worker with disabilities under national law; or
  
• has long-term physical, mental, intellectual or sensory impairment(s) which, in interaction with various barriers, may hinder their full and effective