Unveiling the dynamics of Hungary’s innovation performance

Abstract

This article investigates Hungary’s growing status as a moderate innovator in the European Union, examining why it lags behind leaders like Denmark and emerging performers like Estonia. While previous research has focused on composite scores such as the European Innovation Scoreboard (EIS), this study combines these indicators with a Data Envelopment Analysis (DEA) approach to evaluate innovation efficiency. The study covers the period from 2016 to 2023 providing a temporal analysis of Hungary’s innovation deficit relative to the EU average, as well as a comparative assessment with chosen EU equivalents. The paper identifies systemic slackness in Hungary’s innovation ecosystem, notably in terms of converting R&D inputs and human capital into concrete innovation outputs.