AbstractThis paper is based on survey interviews with 64 respondents conducted in four Hungarian Research Institutes during the spring of 1993. The main objective of the research was to assess progress made with the exploitation of intellectual property contained within these bodies. This investigation has two subsidiary goals. First, given a rapid decline in funding provision by the Hungarian government for these organisations, an initial task of the work was to ascertain the actual and potential financial contribution that has been made from consultancy activities and new 'spin off firms. Second, existing 'spin off firms which had emanated from these sources were examined to ascertain if they had potential for providing industrial growth in the local Hungarian economy. The paper concludes, on the basis of detailed evidence, that progress has been disappointing, and moreover, that severe barriers to the achievement of both these goals continue to exist within the Hungarian economy. Coherent planning will be necessary to exploit potentials which are in danger of being lost through the haemorrhaging of staff to foreign employment opportunities.