Companies are waiting for innovations

By: Trademagazin Date: 2024. 05. 31. 11:17

Due to the unfavorable economic outlook and expensive resources, Hungarian companies are holding off on product and service development, preferring to retain their existing clientele, provide better service, and improve the efficiency of their internal processes, according to the K&H innovation index survey.

For the seventh semester, K&H measures the innovation activity of the domestic medium and large enterprise sector. In the first half of 2024, the K&H innovation index formed from the data of the research remains at the same level as the previous half, unchanged at 29 points. Since the start of the survey, at the beginning of 2021, the innovation index has fluctuated between 31 and 28 points every semester, which indicates that innovation at Hungarian companies has essentially stagnated in the past three years.

The development of the macroeconomic environment significantly affects the willingness of companies to innovate. The percentage of companies that believe that the economic situation will have a negative impact on their innovations has risen again (from 52 percent last year to 62). The proportion of companies forecasting a negative impact in the future did not change significantly, but the proportion of those expecting a significant negative influence decreased noticeably (from 19 percent to 14).