The Government has taken a decision in its Resolution 1073/2000 (VIII. 31.) on launching the National Research and Development Programmes (hereinafter referred to as NRDPs) included in a document called "Science and Technology Policy 2000". The Programme is part of the Széchenyi Plan setting forth comprehensive economic objectives. The rules on the implementation of the NRDPs are stipulated in Government Decree 201/2000 (XI. 29.). In accordance with that, the Ministry of Education is hereby inviting applications for winning support to the implementation of comprehensive research, development and innovation Programmes in the fields of

1. improving the quality of life,
2. information and communication technologies,
3. research on environmental and materials science,
4. research on agribusiness and biotechnology,
5. research on the national heritage and contemporary social challenges.

Any consortium made up of legal entities and organisations without legal status registered in Hungary is eligible for participation in Programmes 1 through 4 of the applications. The same organisations are eligible for participation in Programme 5, but the formation of consortium is not mandatory in this case. Any research institution or business venture registered in the member states of the European Union, or in states with associated status in the 5^th Framework Programme of the EU (Bulgaria, Cyprus, the Czech Republic, Estonia, Iceland, Israel, Latvia, Liechtenstein, Lithuania, Norway, Poland, Romania, Slovakia, Slovenia) may also become members of such consortia, provided that the foreign participant covers all the costs of its own participation. No foreign participant may receive state grant from Hungary, nor are they entitled to be project co-ordinators.

In case of Programmes 1 through 4, the least amount of grant that can be applied for is 100 million HUF for the entire duration of the project, to which the applicants must provide their own funds in an extent subject to the nature of their relevant activities. In case of Programme 5, the least amount of grant that can be applied for in order to cover the total cost of the project is 10 million HUF for the entire duration of the project.

The information bulletin and the application forms containing the detailed terms and conditions of application can be downloaded from the homepage of the Ministry of Education (www.om.hu, Kutatás (Research), Pályázatok (Application)). Information bulletins and application forms can also be requested at the Office of the Deputy State Secretary of the Ministry of Education for Research and Development (1052 Budapest, Szervita tér 8.).

1. PURPOSE, TECHNICAL SCOPE AND RESOURCES OF THE PROGRAMME

The purpose of National Research and Development Programmes is to support the implementation of comprehensive research, development and innovation projects leading to scientific and technological breakthroughs in the fields specified above, the achievements of which contribute to the improved competitiveness of Hungary, to the improvement of the quality of life, to the establishment of quality jobs and to the foundation of a knowledge-based economy and society. The Programmes are furthermore intended to concentrate financial and intellectual resources, to synchronise basic and applied research with technological development, to strengthen and ensure the efficient utilisation of national research and development capacities, to improve our international scientific competitiveness and within that our success in winning international applications. In the area of Programmes 1 through 4, a key objective is to strengthen the collaboration between domestic research and development institutions and the economy, whereas in the area of Programme 5, the preservation and enrichment of our national heritage, and the exploration and answering of contemporary social challenges.

Thus in addition to the strengthening of the domestic scientific capacities, a major objective of these Programmes is to improve the contacts between research and the competitive sector.

In the review process the added value generated by the state support is a decisive factor. No project can be supported even with economically or socially sound objectives that does not foresee research and development activities (see the definition of key terms related to research and development in Appendix 1). No grants will be awarded to applications - regardless of their research and development content - in which the main objective is the mere establishment of a certain scientific capacity. The fragmentation of funds may fundamentally endanger the achievement of the Programme objectives. The aim of specification of a minimum amount of support is to avoid such fragmentation of funds.

In case of projects overarching different scientific fields it is an important requirement, that interdependence, coherence and synergy prevail.

Scope and Priorities of the Programmes

The focus areas within each Programme have been identified by the Steering Committee of the NRDP in accordance with the "Science and Technology Policy 2000":

Programme 1: Improving the Quality of Life

1/A. Bio-medical research

Bio-medical research, in particular the application of state-of-the-art and highly efficient molecular biology methods, molecular pharmaceuticals research and functional genomics.

1/B. Research on social health

Social health research, in particular the policy and economic aspects of health researches, the new possibilities of health preservation and disease prevention, improvement of rehabilitation and sustainable mobility.

Programme 2: Information and Communication Technologies

Integrated intelligent sensors, development of speech technology, mobile and integrated telecommunication networks, application of analogous detection-processing methods and telemetric technologies, telematic methods of intelligent transport, bionics.

Programme 3: Research on Environmental and Materials Science

3/A Development-oriented environmental and materials scientific research

Research on environment friendly, ecologically pure technologies, products and production systems, detection and elimination of pollution, development of pollution reduction Programmes, utilization of natural raw materials available in Hungary, utilization of new domestic energy sources, new technologies and new substances saving energy, improving energy-efficiency, environment friendly power production, environment friendly materials technology research, nanotechnology, environmental aspects of transport, and water management research.

3/B Ecological research

Biological and landscape diversity, protection of animate and inanimate values of nature: status assessment of natural values and areas under protection and worth for protection; research laying down the foundations of environmental management and reconstruction of highly endangered habitat types/communities and geological values especially the ones characteristic of the Carpathian Basin, the protection Programmes for protected plants and animals; research on environment friendly forms of farming suitable for protected or sensitive areas of nature. Characterization of ecological status through indicators and measuring methods, exploration of cause and effect relationships in order to improve the ecological status. Studying of the stability and resisting capability of natural and quasi-natural terrestrial ecosystems, elaboration of the basis for their management ensuring sustainability. Assessment of the biological processes of our surface waters with a view to establish utilization, preservation, and development strategies of biological disaster response.

Programme 4: Research on Agribusiness and Biotechnology

Molecular animal and plant improvement: functional genomics, research on the improvement of farming, forestry and game-stock management, veterinary and plant protection researches, agricultural farming research related to market competitiveness and EU-accession, development of food industry technologies and food-safety related research and development.

Programme 5: Research on the National Heritage and Contemporary Social Challenges

Hungarian culture within the context of the European integration and other international processes: embeddedness in Europe, regional and local features, the situation of the Hungarian language, the image of Hungarians as perceived abroad, the theory and practice of nationality and minority. Examination of the mental and moral condition, habits and identity of society, research into the understanding of demographic processes and into processes effecting the transformation of the social structure, examination of the standards of living of families of different social status, social health, policy and economical aspects of social health, sustainable mobility, exploration of the tangible and intellectual values of our cultural heritage, research on the social integration of Romany.

The technical features of Programme 5 and the possibilities for utilisation of results differ from the other Programmes to a large extent, therefore the terms and conditions of application are also different in Programmes 1 through 4 as compared to Programme 5.

2. TERMS AND CONDITIONS OF PARTICIPATION, GRANT AMOUNTS

II.1 General Terms and Conditions of Participation in Programmes 1 through 5

Any consortium made up of legal entities and organisations without legal status established in Hungary is eligible for participation in the application. Any research unit or business venture of the European Communities, and any research unit or business venture of the countries associated with R&D Programme 5 of the EU with full rights (Bulgaria, Cyprus, the Czech Republic, Estonia, Iceland, Israel, Latvia, Liechtenstein, Lithuania, Norway, Poland, Romania, Slovakia, Slovenia) may also become members of such consortia, provided that the foreign participant covers all the costs of its own participation. No foreign participant may receive state grant from Hungary, nor are they entitled to be project co-ordinators. In case of Programme 5, the formulation of a consortium is not mandatory.

If a consortium is formed, the distribution of work among the participants must be described in the application, and the co-ordinator of the consortium must also be identified. See the specific rules of consortium formation and participation varying by Programmes in the part on the special terms and conditions of participation.

Applications may solely be submitted for R&D activities proposed at a research or other site within Hungary.

No organisation under bankruptcy, liquidation or dissolution proceedings may submit an application, and no contract for grant may be concluded with an organisation having any debt towards the Ministry of Education or any other fiscal charges overdue beyond 60 days.

In case of higher educational institutions, research and development institutes and public repositories, not only the institutions themselves, but also their specific organisational units (faculties, research teams, institutes, etc.) may submit applications, provided that they obtain the consent of the particular institution with legal status. A consortium may submit applications in several Programmes, but a consortium may only be awarded grants for the same project within the framework of one Programme.

National Research and Development Programmes provide grants (non-refundable aid).

II.2 Special Terms and Conditions of Participation in Programmes 1 through 4

In case of Programmes 1 through 4, where a consortium must be formed, the applicant consortium is expected to take on a twofold role: on the one hand, it should be a centre of knowledge (a research and development site), and on the other hand should also fulfil the role of a technological centre (an enterprise transforming the R&D achievements into products and/or services). Therefore at least one member of the consortium must be a research organisation financed from public funds or operated in a non-profit form (university, college, academic research unit, sectoral research institute, foundation research institute), whereas a t least one other member must be an enterprise.

Programmes 1 through 4 primarily support applied research and development projects, and not separate basic research projects. Any basic research may only be included as part of a clearly related applied research and development project, provided that its proportion does not exceed 30% of the total budget (with the exception of subProgramme 3/B). Similarly, demonstration project (demonstration of an industrial-scale implementation of new technologies) may only be awarded grants if incorporated in R&D projects.

Any basic research within a project may solely be performed by the member of the consortium being a research organisation financed from public funds or operated in a non-profit form (university, college, academic research unit, sectoral research institute, etc.), therefore only such organisations may become the beneficiaries of grants applied for in the area of basic research.

Grants applied for in connection with certain types of activities may not exceed the following proportions with reference to the total budget of the particular type of activities:

100%of the basic research,

50%,of applied R&D

35%of the demonstration.

The calculation of an available grant amount is illustrated by the example below:

If the total budget of a project is 500 million Hungarian forints, and it includes basic research in 30 %, applied research in 50 %, and demonstration in 20 %, then the available grant is:

Type of Activity	Proposed Expenditure (thousand HUF)	Maximum Grant Amount (thousand HUF)
Basic research	150 000	150 000
Applied R&D	250 000	125 000
Demonstration	100 000	35 000
Total	500 000	310 000

Section 6 of the Application Form specifying the proportion of the types of activities must be completed in order to allow for a check on the available grant amount.

The total amount of wages and related contributions within own funds committed to the implementation of the project may not exceed 50 % of total own funds.

The amount available for application per project is a minimum of 100 million HUF (with the exception of SubProgramme 1/B).

If a consortium proposes to use other state funds for a particular project, this must be indicated. In such instances, the total amount of grants applied for and of incumbent state grants may not exceed the above percentage ratios!

The duration of projects submitting applications is a minimum of 24 months and a maximum of 48 months, but state grants may only be applied for during the first 36 months.

In case of Programmes 1 through 4, foreign experts will also participate in the technical evaluation, if necessary, therefore the technical parts of the applications must also be submitted in English, see details in the instructions on the completion of application forms.

Exceptions

In case of Programmes 1 through 4, the terms and conditions are different in the instances outlined below in order to better enforce the peculiarities of the particular fields:

SubProgramme 1/B: Social health research

The minimum available grant amount is 20 million HUF instead of 100 million HUF. All other terms and conditions are identical to those of SubProgramme 1/A.

SubProgramme 3/B: Ecological research

Under this heading the participation of basic research within a project may reach 100% (i.e. 100% state grant may be applied for by the project), but this grant is subject to a written statement of the competent ministry or high authority on the compliance of the project objectives with the strategic objectives of the relevant sector, and on the expected form of utilisation of deliverables. In case of SubProgramme 3/B, the attachment of such a statement is one of the obligatory formal requirements of submission.

Note: If an application is submitted for one of the above subProgrammes, it must be indicated on the application form.

II.3 Special Terms and Conditions of Participation in Programme 5

Institutions (universities, colleges, academic institutes, budgetary research and development institutes, non-profit research units and public repositories) established in Hungary with an independent legal status may submit applications either alone or together (in a consortium). The formulation of a consortium is not mandatory in case of Programme 5.

In case of Programme 5, the co-ordinator must be a non-profit research unit (secular, ecclesiastical or foundation higher educational institution, academic research unit, budgetary [sectoral] research and development institute, non-profit research development institute, public repository).

In case of Programme 5, social sciences projected aimed exclusively at basic research may also be awarded grants. Here the available state grant may reach 100% of the total cost of the project. The minimum of available grant amount is 10 million HUF for the entire duration of the project.

The duration of a project is a maximum of 4 years, but grants may only be applied for during the first 36 months.

Since foreign experts may also take part in the technical evaluation, if necessary, the Programme Council is entitled to subsequently request an English technical summary in Programme 5.

3. PRIORITIES

Within the technical priorities of an application, particular emphasis must be placed on the following:

• improvement of competitiveness;
• facilitation of the co-operation between research units financed from public funds (research institutes, higher educational research units) and the economy (companies, business circles);
• facilitation of the innovative developments of the entrepreneurial circles, in particular those of the small and medium-size businesses;
• strengthening of the regional bases of innovations;
• communication of knowledge-intense services;
• supporting of preparations for our EU-integration, promotion of international co-operations.

These priorities shall be enforced in the course of the evaluation.