During the R&D qualification process in Hungary, the National Research, Development and Innovation Office (NRDIO) evaluates several critical aspects to determine whether a project genuinely qualifies as research and development. Below are the five most important questions that applicants must thoroughly address to achieve a successful qualification:
What is the objective of the project?
The project objective must be clearly defined and measurable. It is not sufficient to state that the goal is “to develop new software” or “a more efficient device.” Applicants need to detail which problem the project aims to solve, which new functionalities will be created, and what scientific or technological advancements are expected. For example, if the project involves developing a new type of electric vehicle motor, the expected improvements in efficiency or performance compared to existing technologies should be specified. It is also essential to demonstrate how the development aligns with the company’s innovation strategy.
What is novelty about the project?
One of the core requirements for R&D projects is that they contain novel solutions. The NKFI Office examines the extent to which the planned technology or methodology differs from existing solutions. This requires a thorough analysis of the state-of-the-art and evidence that the project is not merely an incremental improvement of a previous development but produces genuinely new scientific or technical results. Novelty assessment should consider national and international literature, patent databases, and industry trends.
What is the state-of-the-art ((G)SOA)?
The state-of-the-art refers to the most advanced available scientific and technological solutions in a given field. The NRDIO evaluates how much the project represents progress compared to existing technologies. This requires gathering and analyzing the latest research results, industry studies, and market analyses. For instance, in developing AI-based medical diagnostic software, the applicant must present existing solutions on the market and demonstrate which unique, non-existent features the project introduces.
What scientific or technological uncertainties does the project aim to resolve?
Scientific or technological uncertainties are questions for which there is no clear solution based on current scientific or engineering knowledge. The NKFI Office assesses whether the project generates new knowledge or merely applies existing technology in a new context. For example, developing a new material for heat-resistant components might involve uncertainty about which composition and manufacturing process achieve the desired mechanical properties. If the solution can be predicted with certainty by an expert, the project is considered innovation rather than R&D.
Under which conditions and milestones will the project be implemented?
A successful R&D project requires a detailed timeline and clear milestones during the R&D qualification process in Hungary. The NRDIO examines how well-structured the project is and whether the work process is divided into logical steps. Typical R&D project milestones may include:
- Research foundation mapping: Examination of the state-of-the-art, analysis of relevant scientific publications, patents, and market solutions.
- Concept development: Definition of main technical and scientific objectives, formulation of hypotheses, and preparation of initial models or technological plans.
- Prototype development: Creation of the first functional version, which could be a computer model, laboratory device, or software.
- Experimental validation: Testing the developed solution in a controlled environment, measuring performance, and identifying potential technological challenges and errors.
- Industrial application testing: Trial of the solution under real operational conditions, including scalability and integration assessments.
- Preparation for market introduction: Evaluation of results, analysis of patenting opportunities, development of a business model, and determination of future development directions.
Clearly defined milestones and schedules increase the credibility of the project and support successful R&D qualification process in Hungary.
Summary
The R&D qualification process in Hungary aims to support projects that produce new scientific or technological outcomes. To achieve successful qualification, applicants must thoroughly define the project’s objective, novelty, state-of-the-art analysis, scientific uncertainties, and implementation steps. A well-documented and clearly structured project is more likely to receive R&D qualification, which is essential for accessing government grants and tax incentives.
In order to qualify your project as R&D, please contact our colleagues.
