Bridging the Capital Gap
Topic of the practice
Improving interaction between finance and firms
Good Practice Information
Funding is a permanent challenge to the development of companies and cluster organisations can play an important role in assisting company members to gain access to either public or private funding. Often clusters focus on especially EU funding schemes which within recent years have made cluster development a key priority.
Within the framework of a national plan, Budapest has implemented a structured effort to channel EU Structural Funds to its cluster program. Funding sources have thereby been clearly identified at the outset of the policy implementation which is of great importance especially in fielda and areas which ventura capitalists assume to be of high risk.
Evidence of success
In cases where private venture capital is absent, public funding crusial in - at least - initiating cluster development and cluster logics. The Hungarian plan allowed EU funding to be targeted a strategically defined economic policy in which venture capitalist did not venture. The total budget from the EU Structural Fonds and EU Cohesion Funds amounted to 22,4 billion EUROS.
Contact details to obtain further information on the practice
City of Budapest
Annex completed on: 09-10-2012