Neolog most probably derives from the same root as the English word neologism, but I have been unable to find references for the choosing of the word.

There was a movement in Europe and among European Jews in the 1800s for Jews to inegrate into emerging nation states, for Jewish children to learn the national language of their countries, for religious servies to incorporate the national language of their country and for what was called Jewish emancipation.

In Hungary they adapted the name "neolog" for this movement. The following reference is helpful:

"In 1866, the Prussians defeated the Austrians, further underscoring the weakness of the Habsburg Empire. To shore up support for the Monarchy, the Emperor started negotiations with the Hungarian nobility to ensure their support. These efforts led to the Compromise of 1867, when Franz Joseph was crowned with the Hungarian holly crown and the Dual Monarchy of Austria-Hungaria, or Austro-Hungarian Empire was created.

This was a very important moment for the country and for the Hungarian Jews as well. The Austro-Hungarian economy changed dramatically during the existence of the Dual Monarchy. Technological change accelerated industrialization and urbanization. Following the Compromise, the law on emancipation was declared in 1867 about the integration of the Jews, regarding their civilian and political rights. In 1868, a Hungarian Jewish Congress was held. Instead of one Jewish community, three organizations were created: a reform (so called ‘Neolog’), a conservative (Orthodox), and a middle wing (the ‘Statusquo’). The new version of Judaism, called Reform or Neolog, developed alongside emancipation during the 19th century. It rejected the aspects of traditional Judaism seen as incompatible with the modern political and cultural situation. It has quickly become the major affiliation of Jews in Hungary.
http://jhungary.com/Jewish_history


Neolog Judaism was the name given to the religious movement of Jews in Hungary by their national congress. Those who were opposed to this and wanted no changes called themselve "status quo" and others who wanted a super traditional, by the book so to speak, called themselves orthodox.

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Note added at 4 hrs (2011-11-15 12:47:23 GMT)
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Since these groups chose terms like "status quo" and "neolog" that were neither Hebrew nor Hungarian, I think that this term should not be translated. It is also not equivalent to the Jewish Reform demonination of Judaism as the word is used in English today because it is a uniquely Hungarian reform movement.