Positioned at the heart of the growing Central and Eastern European economic region, Budapest has become an attractive destination for foreign direct investment, particularly in R&D. Hungary continues to draw multinational R&D centers across sectors, reflecting sustained investor confidence in its innovation capacity. The Gross Domestic Expenditure on R&D stands at 1.4%, with a goal of significant increase by 2030.
In 2025, the Hungarian government unveiled a multi-year innovation and research investment initiative that allocates approximately $900 million to support corporate R&D and innovation programs. Over the past decade, R&D personnel in Hungary grew by nearly 90%, while multinational R&D spending increased from approximately $880 million to $2.2 billion.
Budapest fosters entrepreneurial activity with multiple initiatives strengthening its innovation landscape and international integration. Hungary introduced a simplified residence permit process for tech startup founders, lowering bureaucratic hurdles and offering a more founder-friendly environment to attract global talent to Budapest and beyond. The country offers highly favorable conditions for research-intensive businesses, including the EU’s lowest corporate tax rate at 9%. It also features startup-friendly policies such as flexible convertible note regulation, one of Europe’s most attractive ESOP frameworks, and tax-free IP contributions to companies.
In December 2025, the European Institute of Innovation and Technology renewed and expanded its cooperation with the Hungarian Ministry of Culture and Innovation, confirming Hungary’s participation in the EIT Regional Innovation Booster pilot, a step aimed at accelerating high-potential startups’ growth and market entry with joint national and EU support frameworks.
Hungary has significantly strengthened its talent pipeline, with ICT bachelor enrollment rising to 12% (from 4% in 2014), PhD numbers increasing by over 50% in a decade, and international PhD students reaching 29%. The country also advances entrepreneurial talent with 20,000 students completing the Hungarian Startup University Program and new initiatives targeting high school and PhD students.
Note: 1 Euro = 1.15 USD; 1 Hungarian Forint = 0.003 USD
