HIPA: Investment support framework modified to boost R+D and supplier cooperation

The minimum investment volumes for eligibility for support have been reduced in certain regions to as low as EUR 2m.

The Hungarian Investment Promotion Agency (HIPA) said in a statement on Wednesday that the government has modified the framework of conditions for investment support awarded on a case-by-case basis to boost research and development activities and cooperation with local suppliers.

The minimum investment volumes for eligibility for support have been reduced in certain regions to as low as EUR 2m.

Eligibility for training incentives will no longer require additional investment projects or the establishment of shared service centres. Companies must only meet a EUR 250,000 threshold for training costs and involve at least 25 staff.

The headcount threshold for eligibility for R+D support has been lowered from 100 to 50, while companies that commit to filing patent applications with priority claimed in Hungary may get extra subsidies.

A new support scheme has been launched for the establishment of R+D centres for companies that pledge to create at least ten research jobs and enter into a partnership with a Hungarian university.

Since 2014, the government has backed 2,200 large-scale investments with a value of EUR 59.2bn in the investment support framework. Those projects created close to 170,000 jobs.