The Bulgarian innovation system is dominated by the public sector. More than 40 percent of Bulgarian R&D organisations operate in the public (budget) sector; 28 percent in the higher education sector; 26 percent in the business sector; and 1-2 percent are non-profit organisations.
Research and development expenditures in Bulgaria are increasing by EUR 10.2 million to EUR 15.3 million annually. However, they are still four times lower than the EU average level and remain at about 0.50% of Bulgaria’s GDP.
According to the European Innovation Scoreboard (EIS) 2009, Bulgaria is one of the catching-up countries with an innovation performance well below the EU-27 average but the rate of improvement is one of the highest of all countries and it is a growth leader within the catching-up group.
The main objectives of Bulgarian innovation policy are formulated in the National Innovation Strategy (NIS), adopted in 2004. This is the most important document that is crucial for the development of the innovation system and growth in the innovation potential of the Bulgarian economy.
The Strategy is directed towards:
development of competitive knowledge-based industry through new mechanisms for promotion of applied research, high technologies and innovations
encouraging the inside and outside integration between the research bodies and their co-operation with the business
development of new mechanisms for promotion of applied research and their introduction in industry and for the attraction of private investments to finance market-oriented applied research products
According to the Strategy, the financial instrument for its implementation is the National Innovation Fund. On 15 March 2005 the Fund started functioning as it opened a call for proposals.
The strategic goals of the Fund are to increase the competitiveness of the Bulgarian economy through the encouragement of market-oriented applied research for the needs of industry as well to create the necessary background for public investments in innovations according to the Innovation Strategy of Bulgaria.
The operational goals of the Fund are:
to subsidize part of the costs for market-oriented applied research, R&D projects intended to be implemented in the industry
to fulfill the measurements stated in the Innovation strategy
to make use of the opportunities which are provided in the Bulgarian Law on State Aid to support the innovative companies
The National Innovation Fund is financed by the state budget and managed by the Bulgarian Small and Medium-sized Enterprises Promotion Agency (BSMEPA), a government body under the Minister of Economy.
Another document, which underlines the goals for the Bulgarian innovation policy is the National Reform Programme for 2008-2010. It focuses on the need for increasing the quality of human capital by a new law on school education, law on higher education and implementation of the lifelong learning strategy; the support for R&D and innovation, mainly by financial incentives, and the infrastructure building with an emphasis on information and communication technologies, biotechnologies, nuclear energy technologies, nanotechnologies, microelectronic, etc.
In March 2009, the Budget Commission within the Parliament adopted the draft of the National Strategy for Scientific Research 2008-2018. The Strategy states the intentions and responsibilities of the Government, to develop science structures and to improve education. Its major objectives are the allocation of resources for carrying out scientific research, the development of human potential for scientific research, and the integration of Bulgaria into the European internal market. The document reflects Bulgaria’s intention to comply with the EU criteria in research by applying indicators for the efficiency of scientific research and by creating and sharing new knowledge. According to the Strategy, the state will offer financial support to new innovative companies, introducing new high-tech decisions.
Operational Programme for the Development of the Competitiveness of the Bulgarian Economy 2007–2013 is one of the seven operational programmes financed by the cohesion and structural funds of the European Union. The total amount of the public financial resources for the programme will be about EUR 1.1 billion. The first priority of this programme has been identified as stimulation of creation and development of innovative enterprises and improvement of the pro-innovative business environment for increasing competitiveness of the Bulgarian enterprises and the national economy.
Bulgaria continues its efforts on acceleration of information society development. The foreseen measures in this field are summarised in the State Policy for Accelerated Information Society Development and are specified in the National Programme for Accelerated Information Society Development. There are seven main areas in the Programme: ICT infrastructure, society and culture, economy and employment, scientific research and innovation, education and training, branding of ICT sector, etc. The Programme was adopted by the Government in October 2008.The planned finance provided for the IT projects for the period 2008-2010 is about EUR 220 million. The State Agency for IT and communications is responsible for the implementation of the policy in this area.
The main innovation policymaking government bodies in Bulgaria are as follows:
The Ministry of Economy, Energy and Tourism(MEET). The Ministry is responsible for the formulation of the public innovation policy concerning the business sector. The National Innovation Strategy proposed the establishment of the National Innovation Council as an advisory body to the MEET, which consists of representatives of the Ministry of Education and Science, Ministry of Finance, Ministry of Regional Development and Public Works, scientific community, business circles, education and NGOs.
The Ministry of Education, Youth and Science(MEYS). The Ministry defines the national priorities in the field of education and science. MEYS coordinates the National Council for Science and Research, which comprises of representatives of government ministries and science organisations. MEYS devises plans and maps out the research framework for the whole country, including the identification of research priorities. The Ministry is also responsible for creating a favorable environment and incentives for the development of science and research. It promotes the science and research with the assistance of institutions such as the National Science Fund (NSF) - the main financial instrument supporting science and research in the country.
The Ministry of Labour and Social Policy (MLSP) is involved in various programmes related to the encouragement of entrepreneurship within the context of National Employment Action Plans. The Ministry is managing the OP Human Resources. Policy on science in the agricultural sector is held by the Ministry of Agriculture and Food and in the military by the Ministry of Defense.
A number of executive bodies have been created with the main purpose of implementing activities and evaluating results connected with the encouragement of innovation:
Bulgarian Small and Medium-sized Enterprises Promotion Agency (BSMEPA). The agency reports to the MEET and implements the measures set in the National Innovation Strategy. BSMEPA is the main organisation supporting SMEs in the country and is managing the National Innovation Fund. Its services are aimed at SMEs to help them start, grow, become more competitive and enter into new markets. The Agency headquarters in Sofia, and has 26 regional offices.
Information Technology and Communications State Agency (ITC State Agency). This agency reports to the Council of Ministers and implements the measures in telecommunications and information technology policy.
Bulgarian Patent Office (BPO). The main activities undertaken by the BPO include: organisation of seminars and training on Industrial Property Business and creation of the Bulgarian Industrial Property Network with offices located in Sofia, Plovdiv, Varna, Bourgas and Russe. The main role of these centres is to provide different kinds of patent information services and support to the SMEs, scientific researchers, academic circles and the individual inventors and to promote the industrial property and raise awareness of the industrial property system.
Bulgarian Development Bank (BDB). The most important business-oriented measure is the creation of the Bulgarian Development Bank as an instrument supporting innovation and technologies in small and medium sized enterprises, which suffer from a lack of sufficient information and the financial and human resources necessary to create innovative products and implement information and communication technologies. The BDB started its activities in the end of 2008. Its overall budget is EUR 250 million. One of the 3 programs of the BDB is the high technologies program, the bank will support every economically sound and environmental investment in the area of high technologies.
The participation of Bulgarian companies, scientific associations and universities in EU framework and operational programs is expanding. In 2008, the Enterprise Europe Network – Bulgaria was inaugurated. The network in the country integrates the activities of the former Innovation Relay Centre-Bulgaria and the eight Euro Info Centres located in the country. Its mission is to foster the development of Bulgarian industry through inward flow of technologies and know-how stemming from European industries, so as to enhance the competitiveness of the industrial companies and their ability to respond to market challenges.The network in Bulgaria supports SMEs from all sectors in taking greater advantage of the opportunities of the Single Market.
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