Janos Meszaros

Innovation is vital in the modern economic environment, as it aims to improve the operational efficiency, competitiveness, and sustainability of enterprises. The study aimed to examine the innovation activity of Hungarian small and medium-sized enterprises and the most important factors influencing their innovation. The paper employed a questionnaire survey in the spring of 2024. During the survey, a total of 253 companies were interviewed about their innovation factors. Based on the results, the innovation activity of the Hungarian SME sector shows a developing tendency. A positive attitude toward innovation is increasingly present among SMEs. More than half of the respondents (53%) believe that innovation plays a key role in maintaining competitiveness. However, in practice, almost two-thirds (58%) of managers do not involve their employees in innovation processes, or only partially, suggesting that companies’ decision-making processes remain centralized. Statistical analyses showed that neither the companies’ size nor age showed a significant correlation with innovation. However, the research results showed a close relationship between innovation and the use of knowledge transfer. This result shows that knowledge management plays a decisive role in the innovation processes of Hungarian small and medium-sized enterprises.

Acknowledgments
This study is funded by the Science Committee of the Ministry of Education and Science of the Republic of Kazakhstan (Grant “Strategy of structural and technological modernization of the basic sectors of the economy of the Republic of Kazakhstan based on ESG: criteria, mechanisms and forecast scenario” No. BR24993089).