Paper/Speech Details of Conference Program for the 31st NISPAcee Annual Conference Program Overview Main Conference Theme Author(s) Imre Kulcsár Budapest University of Technology and Economics Budapest Hungary András NemeslakiDepartment of Management and Business Economics,Budapest University of Technology and Economics,Budapest, Hungarynemeslaki.andras@gtk.bme.hu Title Effectiveness of Government Subsidies Supporting Manufacturing SMEs in Digitalization and Industry 4.0 Technology Introduction File Paper files are available only for conference participants, please login first. Presenter Imre Kulcsár Abstract Hungary in the recent decades is experiencing more and more the problems of the trap of middle-income countries. In the recent years wages have increased substantially without fundamental improvement in productivity. The economic strategy, namely being a low wage manufacturing hub, which helped Hungary to reach the current state of welfare is losing its validity. In our research we analyzed the effectiveness of Hungarian government program aiming to support SMEs to introduce digitization and industry 4.0 technologies into their production in the lesser developed regions of Hungary. We identified six areas where companies see opportunity and need for improvement with industry 4.0 technologies. These are capacity shortage, labor shortage, increasing material costs, difficulties in process or performance measurement, quality issues, and information flow. We also identified how companies are trying to find solutions for the above-mentioned problems which are process improvement, investment in industry 4.0 infrastructure, identification and tracking of data in production and improvement of information flow and data visualization for data driven decision making. Our result show that most Hungarian SMEs are still at the start line of industry 4.0, since most of them need to implement a good MES (Manufacturing Execution System) and only a fraction of them is planning to implement IoT based solutions.
