The emerging vision of the modern, innovative Hungarian economy, which can compete successfully in the global arena, made it absolutely necessary to encourage business firms to be innovation-oriented and to encourage universities to develop, beyond their traditional teaching mission, also their research performance and their capabilities to transfer research results and new knowledge to convert them into commercially relevant innovations. The role of government was to create a suitable legal environment and proper incentives to stimulate and support change and to enable collaborations between Public and Private Sector actors.

Despite recent theoretical and empirical developments, our knowledge about innovation is still limited.