Innovation Europe > News > Innovation EU Vol2-1 > Innovation Bulgaria

Strong economic growth since becoming an EU member state (in 2008 the GDP growth in the country reached 6.0% in real terms) has still not improved Bulgaria’s innovation potential. The EIS 2008 shows Bulgaria is catching up, however – improvement rates are those of the highest. Strengths are in human resources, finance and support and economic effects – weaknesses are in linkages, entrepreneurship and throughputs.

Throughputs, finance and support have been the main improvement drivers, from growth in private credit (25.2%), broadband access by firms (21.5%), community trademarks (67.6%) and community designs (31.0%). Performance in economic effects has hardly grown, due to a decrease in new-to-market sales (-5.7%) and new-to-firm sales (-3.1%).

R&D expenditures in Bulgaria are increasing by €10.2 million to €15.3 million annually (still four times lower than the EU average level), and remain at about 0.50% of Bulgaria’s GDP.

Structures of R&D expenditure remain imbalanced – shares of public sector financing are double that of businesses (the opposite of the Lisbon-recommended ratio of 1:2). The country’s innovation strategy envisages R&D spending reaching 1.15% of GDP by 2013 (out of line with the current level of slightly above 0.50% of GDP).

Experts feel that Bulgaria needs a uniform strategy for scientific, technological and innovation development – currently it is fragmented and unco-ordinated. The existing inefficient system to deliver results requires radical action: the establishment of a strong structure, such as a ministry or an agency for research, technological development and innovation under the direct authority of the Prime Minister.

Main innovation challenges

• To increase R&D expenditure (private and public).
• To strengthen the quality of human capital for innovation.
• To stimulate the partnership between science institutions, enterprises and other institutions involved in the innovative process.

Conclusions

Bulgaria needs an integrated national policy for research, technology and innovation-based activity, which would protect the interests and enhance the competencies of all participants. A clear centre of policy responsibility on innovation is needed in Bulgaria, in order to co-ordinate the various public bodies concerned with improving innovation activity.