hungarian budding clusters gergely gecse department of innovation and environmental protection ministry economy transport hungary i abstract the cluster chapter presents evidence on from country s first mapping exercise as well data government sponsored in a great variety economic branches foreign direct investment one hand bottom up responses to international competition other appear main driving forces development current policy with regional sme approach is reviewed special emphasis necessity using concept tool bridge growing divide among regions ii macroeconomic background over last decade has undergone comprehensive successful political transition centrally planned market fundamental institutional structural changes have gradually created conditions for sustainable growth success transformation reflected by integration into western institutions such nato oecd european union however today faces challenge unevenly divided while