As part of my job, I often meet foreign investors, analysts and business players. When they are asked why they come to Hungary and why they invest here, their strongest argument is always the availability of a highly skilled, flexible workforce. When it comes to Innovation the key to success is more complex: in addition to talent, you need the right technology and collaboration of many players of different roots, setups and sizes. It is not about big fish eating the small ones. It is about how they can help each other to thrive in the same tank.

Innovations can come about through the dedicated work of big business as they improve existing products over time and invest their resources in research and development. GE for example has been at the forefront of developing new technologies. But, more often than not, the radical breakthroughs come from small start-ups with great ideas and with the entrepreneurial spirit to innovate and bring their ideas to market. Not so long ago we presented the Hungarian company,  NNG, with the Hungarian  Innovation Grand Prize for 2012 at a special ceremony in the Parliament. Within less than a decade NNG has gone from being a new business in Budapest to supplying its state of the art navigation systems to 7 out of 10 of the world’s leading car manufacturers, operating across 115 countries and with more than 150 partners.

Big businesses need small entrepreneurial enterprises to bring to bear the fruits of technological developments. There is an increasing recognition that innovation best takes place through collaboration and partnership, not only across sectors, but also between small and big business. And small business in Hungary is growing stronger and more innovative: for example,  Prezi.com is becoming a cornerstone of excellence in communications, and an essential part of office life with its presentation software; the  Kenguru smart car is transforming the lives of disabled people.

And the Hungarian government is committed to ensuring that the right incentives and infrastructure are in place to inspire and support innovation.

Zoltán Cséfalvay is Hungary's Minister of State for National Economy. This post first appeared on GE's Citizenship blog.

(ideaslaboratory.com)