Regional innovation systems in Hungary: the failing synergy at the national level

Abstract

In this paper we use entropy statistics to measure the synergies of knowledge exploration, knowledge exploitation, and organizational control in Hungary. We categorized the firms in terms of sub-regions, industrial sectors, and firm size. Configurational information among these distributions is the indicator of the synergy in the system. The results indicate that three regimes were generated in the Hungarian transition period with different dynamics: Budapest emerges as a knowledge-based innovation system; in the north-western regions, foreign-owned companies have induced a shift in knowledge-organization; while the system is organized in the southern-eastern regions in accordance with government expenditures.