Innovation and company performance in Hungary
The study examines the relation between innovation and company performance, using data for Hungary in the regular Community Innovation Survey of EU member-states. The innovation data are married with balance-sheet data and customs statistics. It emerges that innovative firms are more productive, more likely to take part in foreign trade, and able to export to more countries. Innovation activity occurs in a higher proportion of foreignowned firms than domestically owned ones, but the relation between their R and D expenditure and their innovation performance is weaker.
An innovation paradox in enterprise financing where buyers fail to pay
The model of external financing of the firm is extended here to cases where there may be defaults on account receivables. Information asymmetry between entrepreneur and lender on a firm's creditworthiness leads to moral hazard and credit rationing, even in the absence of default risk. The authors show an optimal debt contract that formulates the situation, and focus on two cases: where the entrepreneur has an information advantage on defaults on receivables, and where the information is symmetric. A comparison of these cases revealed a paradoxical knowledge issue in external financing: a better informed entrepreneur may be able to afford a smaller financing ability. The model describes a frequent phenomenon in small businesses, when the relationship between buyer and seller lacks transparency, and lenders offer lower amount of lending to small and medium-sized enterprises.
Resource allocation in Hungarian health care – is there a missing link?
One well-known characteristic of the Hungarian health care system is its inappropriate reallocation of sources of public finance. There are numerous incentives in the current allocation system that effectively reduce the chance for institutions to function effectively and win equal access to health-care infrastructure. To overcome such difficulties, many developed countries have introduced capitation-based allocations into their redesigned health care systems. The author explores the strengths and weaknesses of this method to see whether it can potentially improve the current system in Hungary. He argues that by introducing a new resource allocation method in certain areas and under appropriate conditions it is indeed possible to improve the efficiency and equity of the Hungarian health system, despite all the possible disadvantages.
Rapidly growing small and medium-sized firms as the driving force behind the Hungarian economy
The article, in underlining the significant economic role played by dynamic small and medium-sized firms, concentrates on examining the factors influencing the growth of small and medium-sized firms in Hungary and the attributes of the fast growers. It mentions briefly that several different "life paths" for these firms may emerge. They may be supported by a well-qualified workforce and an enterprise-friendly economic environment or held back by the absence of these.