Networking Related to Sustainability in Hungary

Sustainability is arguably one of the greatest challenges to Hungary in the future. The question is how to meet this need and tackle this challenge that requires commitment from the different players of the supply chain.This aim of the work within the FP7 Salsa project was to detect, explore the importance of sustainability and categories of the sustainability by the actors of the network and identify those elements related to sustainability issues, which support the future success along the soya and beef supply chain.In Hungary majority of the soy and beef enterprises are classic SMEs.The topics was quite “hard” for the questioned SMEs, because in one hand it is an increasing needs for sustainability, but in the other hand the environmental concerns haven’t acquired as significant awareness in Hungary as in western countries within the European Union. The needs regarding sustainability can be identified mainly from farmers and wholesalers (particularly multinational companies)., but most of the cases significant activities or changes have not been made yet.The producers emphasized that they fulfill the sustainability requirement if it is a real needs from their customers or without risking their success of their businesses. The other frequently mentioned answer was that they dealt with the sustainable aspects if it supports the most efficient use of the natural resources or the better quality of the product.Sustainability was associated with costs. The participants all agree that the cost of sustainability can be fairly high. However there is a significant need for sustainable production and products in Hungary, they do everything to meet the requirements of the sustainability standards. But in that case the members of the supply chain can see clearly the profitability of their investment in sustainability.Based on the results we could conclude that there is a harmonized, good business relation between the stakeholders within the Hungarian soy and beef supply chains. The power relations are different within the soy and the beef chains. Within the beef supply chains the wholesalers make the rules, and in spite of this, within the soy supply chain the bargaining power depends on the size of the soy production per year and on the market trends.Finally we could conclude that there is a real need from the players of the supply chains for collaboration, because only with the collective changing will contribute to enhance sustainable development in Hungary

Horizontal and vertical networks for innovation in the traditional food sector

The locus of innovation is not the individual firm anymore but increasingly the network in which the firm is embedded. Hence, in this paper innovation is investigated in the broader context of networks and applied to the traditional food sector. Networking refers to a process of identifying and acting on complementary interests with or without formal means of cooperation and plays an important role for the diffusion and adoption of innovations, because they increase the flow of information. Two main types of networks exist. Vertical networks relate to cooperation of partners belonging to the same chain. Meanwhile, horizontal networks refer to coopereation among firms which are primarily competitors. Data were collected during focus groups and in-depths interviews in three European contries: Belgium, Hungary, and Italy. In each country, data are collected from retailers/wholesalers, food manufacturers and suppliers in the beer, hard and half hard cheese, ham, sausage, or white paprika chain. In the investigated countries both vertical and horizontal networks exist. However, the intensity of using the network differs. On the one hand vertical networks are well developed based on quality assurance schemes and traceability, though these networks often face difficulties due to high lack of trust. On the other hand, horizontal networks are well developed when a producer consortium is involved. However, these networks can be inhibited through strong competition. The partners in traditional food networks focus mainly on innovation related to product characteristics such as new size, form and packaging without changing the traditional character of the product. The main barriers for innovation in the traditional food networks are the lack of understanding the benefits of networking activities for innovation, the lack of trust, the lack of knowledge of appropriate methods and skills, and the lack of financial and physical resources. Our study points out that successful SMEs use their networks to overcome lacks of knowledge and information and to create possibilities of joint use of resources

Employment and the Social Economy. EU Funding Opportunities for Developing Human Resources

The paper examines the role of EU cohesion policy in the field of human resources development and improving conditions for employment. The main objective of the analysis is to present a comprehensive picture about funding opportunities in connection with financing the activities of organisations of the social economy. As a background, the study stresses that the success of the European integration process depends to a great extent on the strength of economic and social cohesion between EU member states and regions. In order to create conditions for sustainable and balanced growth with social inclusion, there is a need to enhance the competitiveness of less developed regions combating the difficulties of structural change, and to improve their development prospects. To achieve this aim, one of the most important fields is to improve human resources. The paper points out, that EU cohesion policy has a crucial role in reducing disparities. After a general introduction to the EU level regional policy funding, the study focuses on the activities supported by the European Social Fund (ESF). The next part of the study deals with the possible types of the social economy projects and problems of self-financing. The author emphasises that social innovation emerges where State and markets fail to deliver for society (theory of non-profit/third sector) but not just to fix or replace them. The author concludes that these projects require state subsidies (official grants) at the beginning, but at the same time they can generate income. In this respect they follow same economic goals as other market actors, however, the crucial difference is that their main goal is not to make high profits for the owners. In the last part, as a concrete case study, the paper concentrates on the priorities of the Hungarian development plan in relation to social renewal. The author explains the priorities and fields of interventions of the social renewal programme. Finally, the chapter deals with the recent changes in the Hungarian employment policy and related measures supported by the European Social Fund. The chapter concludes that several employment programmes, projects for the development of social economy and programmes assisting the spreading of voluntariness and the training of volunteers have been launched with the co-financing of ESF

The Internationalisation (Transnationalisation) of the SME Sector as a Factor of Competitiveness

As part of a wider research program we analysed the theoretical frameworks and the developments of the process of internationalisation (transnationalisation) of small- and medium-sized enterprises in the European Union and specifically in Hungary and Spain. We tried to highlight the barriers and trends of internationalisation. We consider internationalisation of the SME sector as a crucial factor in increasing competitiveness and as an important condition for sustainable and dynamic growth and improving employment (Europe 2020). We made policy recommendation mostly for the government in terms of how to promote the process. We carried out analyses of documents and databases, interviews, and online data collection

The significance of FDI for innovation activities within domestic firms - The case of Central East European transition economies

Foreign direct investment is expected to play a significant role as a multiplier of modern production- and management-know-how in Central East European transition economies. The so-called technology-spillovers are explained through externalities or extra-marketlinkages. In practice they can take place via demonstration effects, labor mobility, supplier contacts, customer contacts or networking activities. However, the empirical study on the example of Hungarian industry shows that foreign owned and domestic firms – mainly due to their strong technological disparities – build virtually separate spheres within the industrial sector. Thus, technology-spillovers do hardly appear as an innovation-stimulating means for domestic companies.