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Hungary Investment in key sectors

Investment in Key Sectors: Fueling Technology and Education in Hungary

Hungary’s economic development is closely tied to its strategic focus on technology and education, with both sectors receiving strong public and private investments. These investments foster innovation, workforce development, and global competitiveness.

Technology Sector: A Hub of Innovation and Growth

Hungary’s technology sector has become a cornerstone of its economic strategy, with public and private investments driving the country’s growth into a leading tech hub in Central and Eastern Europe (CEE).

Public Investment: Driving Digital Transformation 

The Hungarian government actively supports the technology sector through various initiatives aimed at strengthening digital infrastructure and fostering innovation. Notable public investments include:

  • Connectivity: Hungary is investing in expanding very high-capacity networks like 5G and fiber infrastructure, with a focus on rural areas to bridge the digital divide.
  • Digitalization of the Public Sector: Significant funds are directed toward modernizing government services and enhancing e-governance, making public services more efficient.
  • Boosting Digital Skills: Programs aimed at promoting digital literacy are designed to address the shortage of IT professionals and future-proof the workforce.

In 2023, Hungary saw investments in ICT, AI, and MedTech, which are among the most funded sectors. The government’s digitalization plans and focus on technological innovation are helping strengthen the country’s position as a leader in these industries​.

Private Investment: Powering Innovation-Driven Ventures 

In 2023, Hungary’s startups attracted significant venture capital, particularly in the Fintech, AI, and ICT sectors. Hungarian companies such as Commsignia and Turbine attracted millions in investment, signaling the country’s growing reputation as a hub for tech-driven innovation. Hungary’s regulatory environment, highly skilled talent pool, and strategic location continue to attract international investors looking to capitalize on its tech scene​.

Education Sector: Building a Skilled Workforce for the Future

Hungary’s education sector plays a crucial role in supporting its technology-driven economic growth. The focus is on improving STEM education and providing the workforce with the necessary digital skills to thrive in an increasingly tech-centric economy.

Public Investment: Nurturing STEM Excellence 

Hungary allocates significant resources to education, particularly to enhance the quality of STEM education:

  • Curriculum Updates: Efforts are made to integrate digital tools into classrooms and improve teaching in areas critical for the tech industry.
  • University-Industry Collaboration: Universities collaborate with leading tech companies to provide students with the skills required by the rapidly changing job market.

In 2022, Hungary’s government spent a substantial portion of its GDP on education, underscoring the importance of STEM skills in the country’s long-term economic strategy​.

Private Investment: Empowering Digital Skills Development 

Private companies play an essential role in developing digital skills through partnerships with universities and tech training programs. Google and Nasdaq are among those that have launched initiatives to prepare Hungarian students for tech-driven careers, ensuring that the country maintains a competitive talent pool in ICT and AI​.

Hungary’s Funding Ecosystem: Strengths and Outlook

Hungary’s ability to attract significant investments is fueled by its growing pool of local and international investors, strong government support, and a focus on high-growth sectors like ICT, MedTech, AI, and Fintech. This vibrant ecosystem, along with its strong educational foundation, positions Hungary as a rising star in Europe’s tech scene

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2025-02-11T16:41:07+01:00

Hungary Startup density

Hungary’s startup ecosystem has evolved into a key player in Central and Eastern Europe (CEE), driven by a supportive business environment, strategic government initiatives, and a growing pool of entrepreneurial talent. The country's dynamic ecosystem has attracted both local and international investors, fostering innovation across diverse tech sectors.

2025-02-11T16:50:14+01:00

Hungary Export/Import Ratio

Hungary, a Central European nation bordered by Slovakia, Ukraine, Austria, Romania, Serbia, Croatia, and Slovenia, experienced notable trade dynamics in 2023. The country exported goods worth US$160.8 billion, marking a 31.6% increase from 2019’s $122.2 billion and a year-over-year rise of 7.3% from $149.9 billion in 2022. Simultaneously, Hungary imported goods valued at $148 billion, a 6.55% decline from $159 billion in 2022. This trade activity resulted in a $12.8 billion trade surplus, reversing the previous year’s $9.1 billion deficit.

2025-02-11T16:47:36+01:00

Hungary Innovation index

Hungary continues to strengthen its position in global innovation through strategic investments in research and development (R&D), patent activity, and high-tech industries. The Global Innovation Index (GII) 2024 ranks Hungary 36th out of 133 economies, a slight decline from 35th in 2023. Despite this small drop, Hungary remains one of the most innovative economies in Central and Eastern Europe (CEE) and maintains a strong high-income economy status.