Bridging the “Valley of Death”: Dr. Zsolt Szalay on the Role of the State in Driving Innovation

In a recent article on Index.hu, Dr. Zsolt Szalay, Head of the Department of Automotive Technologies at BME, shared insights on the importance of bridging the “Valley of Death” to support the success of startups. This figurative gap represents the funding challenges young, innovative companies face. Dr. Szalay emphasized the state’s role in establishing financial instruments like convertible loans and in supporting mentor programs to guide budding entrepreneurs through market hurdles.

Drawing on his extensive academic and industrial experience, Dr. Szalay highlighted that venture capital should contribute not just funding but also valuable connections and professional guidance. He cited the role of universities in connecting research outcomes with market needs, referencing the MIT model, which emphasizes close collaboration between academia, capital, and industry.

While the state must play a foundational role in regulating and supporting the innovation ecosystem, Dr. Szalay believes that sustainable growth lies in market-driven solutions. Universities can help validate and showcase promising prototypes, but venture capital’s task is to invest in projects with demonstrable potential. Ensuring that start-ups have access to professional guidance and capital at critical stages is essential for transforming innovative ideas into market-ready solutions.