West Pannon

The West Pannon region

Hungary is directly bordered by the EU on the west. The physical and cultural proximity of Austria and the close contacts created in numerous areas (especially to Burgenland - West Pannon Euregion) must be stressed. From 1995 on, the Phare CBC program strenghtened the cooperation and the contacts with the support of common developmental strategies and projects. This proximity of the EU borders is also one of the most important positive factors for the attraction of foreign capital investments to the region. The development of traffic contacts that connect the region with Europe (e.g.: traffic corridors, planned motorway and railway developments) is a further important element.

The well qualified inhabitants of the region assure, compared to the other regions of Hungary, a more favourable labour market situation. Not counting Budapest and county Pest, the region's portion of persons over 18 years with at least a secondary school qualification is the highest (33,2 %), as well as the portion of persons over 25 years with an university degree (10,1 %).

The relatively high economic activity rate is more favourable than in the other regions of the country. The unemployment rate is also relatively low (4,2 %, whereas the country rate in the end of September 2001 was 5,6 %). In that respect, the differences among the counties and small areas inside the region are typical (e.g.: in county Zala 7,8 %, in county Gyor - Moson - Sopron 4,6 %).

The development among the industrial, the service and the agricultural sector is relatively balanced. For example, 5,9 % of the employees in the region work in the agriculture sector, 43,8 % in the industry sector (which is 12,8 % above the country average), and 50,3 % in the service sector.

In respect of the attraction of the foreign capital investments, as well as in respect of the industrial export orientation, the region reached better results than the other Hungarian regions. For example, outside Budapest and county Pest, the region's rate of enterprises founded with foreign capital is the highest (11,3 %). However, there are differences in the counties and in the industrial sectors, as well as in the concentration of investments.

The West Pannon region has favorable economic and business bases:

• the economy of the region increases dynamically;
• the volume of the foreign venture capital streaming to the region is remarkable;
• the economy of the region is open, so it is capable of a continuously increasing quality export activity;
• the region commands highly qualified manpower, partly due to this is why the rate of the employment is high, too.

The positive factors and processes listed above signal and guarantee for a long time that the task and the purpose of the West Pannon region is not to deal with the crisis, but to preserve and to further strengthen its economic renewal ability.
The main instrument of the maintainable and dynamic increase is - beside the utilisation of the present strengths to the highest possible degree - the convenient adaptation of the internationally approved economy developmental instruments.

PANAC

Pannon Automotive Cluster is an innovative, network based cooperation of businesses and organisations with interests in the automotive industry. It is organised on a voluntary basis and founded on mutual benefits.

The cluster as a concept - A new type of business integration

Clusters are cooperative networks of businesses organised on a product basis and concentrated on a specific territory. They make use of cooperation opportunities among manufacturers, consultants, training institutions and the service provision industry in order to intensify market presence.

Participants of PANAC - The open cooperation

The membership structure of the Pannon Automotive Cluster offers participation to all businesses and non-profit enterprises, organisations and institutions associated with the automotive industry, irrespective of their size and ownership structure.

Organisation principles of PANAC - On a voluntary and mutual basis

The autonomy of the participating companies is not affected by the cooperation within the framework of Pannon Automotive Cluster in any way. Companies shall decide, on a case-by-case basis, whether they participate in a specific project initiated by PANAC or assume a role in the implementation. The central idea of ad hoc partnerships arranged for such projects is, in each case, the effort to provide mutual benefits for participants through cooperation.

The engine of cooperation - Innovation and knowledge

The endeavor for new, better and more efficient products and services, for a higher level of technology and quality is present at all levels of the cooperation. Knowledge, intellectual and technological potential concentrated within the Cluster, as well as an inclination for cooperation can provide a proper environment for the development of innovations and/or their involvement into serial production or mess service provision.

The way of operation - A network based cooperation

We strive to explore and develop synergies jointly with partners in the Cluster. It is our common task to explore areas and methods of potential cost reduction resulting from cooperation, the physical proximity of ventures, as well as the better recognition of each other's capabilities, possibilities and efforts. Cooperation frameworks will make it possible for partners to utilise efficient tools of task sharing, cooperation and conveying business information to the maximum, as well as to increase the business intelligence of the group of companies via networking techniques.

Operation of Pannon Automotive Cluster

Pannon Automotive Cluster has been established with the active participation of Hungary's largest automotive enterprises and the support by the West Transdanubian Regional Development Council. Industrial Founding Members are Audi Hungária Motor Kft. - Magyar Suzuki Rt. - Opel Magyarország Jármugyártó Kft. - LuK Savaria Kft. - Rába Holding Rt. Service Provider Founding Members: Citibank Rt. - Ipargazdasági Kutató és Tanácsadó Kft. The Hungarian Ministry of Economic Affairs joined as an active sponsor. PANAC constitutes a network based on civil law, which has been created and operated for shared goals. As far as the operating frameworks, it is not a legal entity but operates as the PANAC Division of the West Transdanubian Regional Development Council.

Objectives of Pannon Automotive Cluster

• Foster the creation of a cooperative network of automotive enterprises in the region and the increase of efficiency of this cooperation via the development of inter-company coordination.
• Accelerate the establishment of new supplier links and the process of becoming a supplier.
• Support the launch of investments for the improvement of competitiveness, the improvement of supplier capabilities and quality.
• Encourage the innovation activities of the businesses in the region.
• Initiate and actively participate in the establishment of the commercial and service provision network in the region.
• Encourage the settlement of foreign automotive ventures in the region.
  

Tasks of Pannon Automotive Cluster

• Support businesses with real supplier potential interested in improving their supplier position, with special
• regard to Hungarian small and medium sized enterprises.
• Map supplier links, survey the competence level of potential participants, establish and organize the array of experts providing professional support and quality training.
• Collect innovative project ideas, coordinate their implementation, mediate possible project partners.
• Create a common PR and marketing operation.
• Act as a liaison between SME's and multinational corporations, business players and organizations dealing with economic development, and various subsystems of public administration.

Tools available for Pannon Automotive Cluster

• The information and communication platform offered by the PANAC portal (www.autocluster.hu), which is a primary organisation interface for the virtual community of the cluster. Portal services to be launched: on-line member registration and data management, automotive and business news; information on new projects, funding opportunities, professional (public, member and closed group) forums, newsletters, on-line databases of members, service providers, training organisations, R&D, as well as B2B techniques.
• Development and implementation of a company diagnostics method, free of charge, completion of corporate SWOT, establishment of personal contacts, opportunities for custom tailored services.
• Arrangement of training sessions and education courses for quality development, to encourage company innovation processes and create a learning organisation.