Or, as the American business theorist Henry Chesbrough rather more eloquently said, “No one has a monopoly on knowledge the way that, say, IBM had in the 1960s in computing, or that Bell Labs had through the 1970s in communications. When useful knowledge exists in companies of all sizes and also in universities, non-profits and individual minds, it makes sense to orient your innovation efforts to accessing, building upon and integrating that external knowledge into useful products and services.”
Chesbrough lives by what he says. He coined the phrase “open innovation.” He is the educational director of the Garwood Center for Corporate Innovation at Berkeley Haas. In a nutshell, he argues that you do better by looking outside your organization, even by sharing your IP. Think open source software rather than proprietary coding.
I have long felt that this isn’t a concept that governments are naturally prone to embrace. They generally seem more keen on telling citizens what to do rather than assuming others might have something valid to contribute. Even Winston Churchill is supposed to have said, “The best argument against Democracy is a five-minute conversation with the average voter.” There’s something oddly pleasing about the curmudgeonliness of that quote, but sadly, it probably isn’t true. The International Churchill Society lists it in its “Finest Hour” section among “A Concise List of Attributed Churchill Quotes which Winston Never Uttered.” Ah, well.
But I digress. Like many other political parties, Fidesz has rarely given the impression of wanting, needing, or seeking outside help. But look around at the companies that comprise the membership of the various international chambers of commerce. Think of the quality of CEOs they can bring together. Indeed, simply scroll through the roll call of all those nominated for Budapest Business Journal’s annual Expat CEO Award. With all these brilliant business minds on tap, why wouldn’t you go to the well and drink deep?
As featured on our cover page, the American Chamber of Commerce in Hungary (other chambers are available) has recently published the 2024-25 edition of its “Cooperation for a More Competitive and Sustainable Hungary,” its annual recommendation package of steps to be taken to help improve the economy. These are serious suggestions to put Hungary in a better place. I’m not suggesting for a moment that AmCham complains it is not listened to. I am very much saying that I hope its advice is welcomed, read, internalized, and acted upon. Elsewhere in this paper, you’ll find our annual Legal Services Market Talk. It’s a deep dive that I will leave you to enjoy at your leisure. Still, one emerging thread is a suggestion that new laws should be given a longer lead time and that more comprehensive consultations should be made, especially among those affected by the changes or who may have relevant experience. That doesn’t sound like a particularly radical idea, now, does it?
Robin Marshall
Editor-in-chief
This editorial was first published in the Budapest Business Journal print issue of May 31, 2024.
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