Leading Innovative Practices in the Thematic Area “Healthy Living Industry and Biotechnologies” at a Regional Level

ISSN 1313-3551 (online) doi:10.15547/tjs.2020.s.01.074

LEADING INNOVATIVE PRACTICES IN THE THEMATIC AREA “HEALTHY LIVING INDUSTRY AND BIOTECHNOLOGIES” AT A REGIONAL LEVEL

Y. Yarkova*, P. Atanasova

Department of Regional Development, Faculty of Economics, Trakia University, Stara Zagora, Bulgaria

ABSTRACT The regional context of smart specialization continues to be in the focus of academic discussions as the innovative potential of regions in Bulgaria is being determined. The aim of the present work is to identify innovative practices in one of the leading thematic areas – “Healthy living industry and biotechnologies” during the period of 2014-2019 in a selected region. The object of research is the region of Yambol listed in the National Strategy for Smart Specialization in the Republic of Bulgaria as a promising region in the thematic area “Healthy living industry and biotechnologies”. We have applied methods of regional economic analysis based on objective statistical data. Regional analysis has been complemented with a survey to reflect the subjective viewpoint of stakeholder representatives. The survey and the analysis of the collected information proves presence of potential in the region of Yambol for expanding organic production in the food industry and generating “green energy” in the energetics sector.

Key words: healthy living industry and biotechnologies, Yambol region, organic farming, biotechnologies

INTRODUCTION worrisome that even in the field of research, The regional context of smart specialization technologies and innovation Bulgarian regions continues to be in the focus of academic have been lagging behind in recent years. A discussions as the innovative potential of more pressing concern is the implementation regions in Bulgaria is being identified. of green innovations which not only improve According to the socio-economic analysis of the state of the environment but also reduce the regions in the Republic of Bulgaria in 2019 all exhaustion of resources and secure energy regions but the South-West have kept their last supply (2). They facilitate the increase in positions in the EU rank for leading economic competitiveness of businesses through the indicators (GDP per capita, labour efficiency – production of ecologically clean products and at least twice as less than the average for the the use of green technologies in the production European Union) (1). With the adaptation of process. Even though in 2017 Bulgaria adopted regional economies to the steadily changing the OECD Declaration for Green Growth (3) competitive environment, and the studies have shown that the capacity of the implementation of new technologies and organic economy sector in Bulgaria has not innovations, the possibility for realizing been used rationally (4), including the sustainable development has become one of absorption of the so called recycled material the leading strategic goals of the EU. It is (5). Moreover, the projects realized so far with ______the support of the Operational Programme *Correspondence to: Yuliana Yarkova, “Regions in Growth”, the Programme for Department of Regional Development, Faculty of Development of Rural Regions and the Economics, Trakia University - Stara Zagora, National Programme for Energy Efficiency Bulgaria, mobile phone: 0886105430; e-mail: include mainly the application of measures for [email protected] renovating buildings and changing window Trakia Journal of Sciences, Vol. 18, Suppl. 1, 2020 451

YARKOVA Y., et al. frames, while investment for RES for listed in the National Strategy for Smart individual use is absent (6). Moreover, due to Specialization as one of the promising in this the lack of data about the monitoring of saved thematic area in the Republic of Bulgaria. The energy realized through projects for residential accent of the subject of research is on finding building in Bulgaria, the levels of energy registered productions in the area of efficiency cannot be reported (7). biotechnologies, as well as on identifying regional advantages. As for innovative practices, data from the Regional Innovation Scoreboard (2019) (8) METHODS show that only the South-West region in We have applied methods of regional Bulgaria has reached a level of indicators economic analysis for which first and foremost placing him among moderate innovators. All objective statistical data have been used. For other regions remain in the group of modest bioproduction in the region of Yambol we innovators. Considering that innovation of have used objective data from the electronic regions at level NUTS 2 correlates directly to Register of organic farming for operators and innovative practices at a regional and subcontractors. The register provides a municipal level, it is necessary to exercise complete monitoring on organic farming, better monitoring and involvement to the storage and trade with bioproducts in Bulgaria degree and character of each innovative according to the requirements of EU initiative, including those related to the leading regulations. The electronic register is thematic areas of smart specialization. maintained in accordance with the provisions According to the Innovation Strategy for Smart of Art. 28, (5) of Regulation (EC) № 834/2007 Specialization of the Republic of Bulgaria (9) and Art.16а, para. 1, item 1 of the Law for priority thematic areas for the region of application of the Common Organization of the Yambol are: “Healthy living industry and Markets of Agricultural Products of the biotechnologies”, “Mechatronics and pure European Union (ZPOOPZPES). Regional technologies”, as well as “New technologies in analysis has been complemented with creative and recreational industries”. conducting a survey to reflect the subjective Production with distinct potential comes from viewpoint of stakeholder representatives. the sphere of “Healthy living industry and biotechnologies”. This is preconditioned by The survey includes questions eliciting such regional characteristics such as the plain important information for innovative practices, land, suitable climate, the big share of arable directed towards the thematic area “Healthy land, and traditions in regional economy. living industry and biotechnologies”, potential and issues related to start-ups or expanding According to an analysis done by the Ministry businesses. of the Economy in 2019 regions show a relatively little activity in “Healthy living AVAILABLE INNOVATIVE industry and biotechnologies” (19% of all PRODUCTION PRACTICES IN THE activity). In the South-West region to which THEMATIC AREA “HEALTHY LIVING Yambol area belongs the submitted grant INDUSTRY AND BIOTECHNOLOGIES” applications are only 20 out of 396 in this Most of the arable land on the territory of the thematic area. In comparison, the total number region of Yambol contribute to the leading of proposals from the South-West region are position of the sector “Agriculture, forestry 143, and from the North-West region – 123 and fisheries” in the regional economy. The (10). It is necessary to find out what hinders existing traditions are prevalent in cultivating the greater activity in submitting applications wheat, barley, sunflower and other crops. and whether there are any obstacles for the Good conditions are also present for growing development in this priority direction for the herbs on the territory of the region. The region of Yambol, despite the availability of contribution of the agriculture sector to the identified potential and opportunities. gross value added of the region of Yambol in 2018 was 11.8%, which has earned it seventh The aim of the present work is to identify place in a total of 28 regions for the level of innovative practices in the thematic area “and contribution of the sector to the GVA (11). welfare industry and biotechnologies” during According to data provided by the Regional the period of 2014-2019 in a selected region. Administration of Yambol (12), regarding the The object of the study is the region of Yambol state of productions in the thematic area

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YARKOVA Y., et al. “Healthy living industry and biotechnologies”, we must add that the region has the potential A study on organic production in the region of for development in the agriculture sector, Yambol in 2016 (13) shows a very slow because it has been well-established producer developmental tendency, despite the 71 new of agricultural goods which is visible in the bioproducers registered in 2015. The study higher concentration on organic farming. proves that soil-climate resources of the territory have efficient capabilities for active According to data from the Regional agricultural work and supports the fact that the Administration of Yambol as early as 2014: region is one of the biggest agricultural  In the area of organic farming lavender producers in the country. A key factor for plantations have been differentiated on 32 successful organic farming is the clean decares and a distillery for lavender oil has environment and the absence of polluters from been built in the village of Zimnitsa. A heavy chemical industry. Still, the contribution company called “Bulherbs” EOOD of the region of Yambol to the total number of produces organically certified essential oils registered productions in the Organic farming and herb seedlings. sector on a national level remains low (2.8%).  In Elhovo Municipality the Association As of April 2020 according to data provided by “Business Centre Elhovo” grows herbal the Ministry of Agriculture and Foods (14), the plantations. Organic farming is being number of producers, processors and retailers developed, and more specifically the of agricultural products and foods coming from cultivation of medicinal plants in the region organic farms in the region of Yambol is more of Strandja-Sakar. Sustainable farms in the than 142, which is twice as much as the area of herbal production and organic number in 2015. farming are also developing. There is an enterprise for packaging organic products Despite the increased number of producers, the with the trade mark of “Tronka”, offered in relative share at a national level remains low. retail networks around the country. A This is indicative of the fast speed at which the biofarm for herbs, seasonings, and sector is developing and the need to stimulate vegetables called “Ostrova” has been and support the industry. certified on the territory of the The following figures contain data about the Municipality. “Yanitsa Energy” OOD registered farm practices certified for company produces ecologically clean bioproduction in the region of Yambol (Figure products with a focus on growing 1). vegetables and cultivating rye and spelt wheat. 13% 21% Bolyarovo 21% Straldzha 27% Elhovo 18% Yambol Tundzha

Figure 1. Territorial structure of farm practices, certified for bioproduction per municipality in the region of Yambol, % Source: Authors’ calculations based on data from the Ministry of Agriculture and Foods, 2020

Figure 1 shows the relatively even distribution milk production have been registered in of bioproducers in the municipalities of the Yambol municipality. On the territory of region of Yambol. The largest number of Elhovo municipality there is also a registered registered and certified bioproducers are within biofoods retail firm, as well as organization for the Municipality of Yambol. Tundja and processing and trade of herbs and an organic Straldja municipalities come next. The smallest milk producer. number of bioproducers are from Bolyarovo municipality. We must note that three retail The next figures present an analysis of specific companies for biofoods and one for organic sectors in bioproduction (Figure 2). Trakia Journal of Sciences, Vol. 18, Suppl. 1, 2020 453

YARKOVA Y., et al.

30 25 20 15 stock-raising 10 Plant growing

numberofproducers 5 0

Figure 2. Branch structure of farm practices certified for organic production in the municipalities of The region of Yambol. Source: Author’s calculations based on data from the Ministry of Agriculture and Foods,2020

Figure 2 shows the limited number of farms in high shares of land planted with these crops. the livestock sub-branch. They are represented This demonstrates the traditions of the region mainly by a total of nine producers of honey in agricultural production and presupposes the and bee products. There is a clear preference development of organic farming in the region. for plant production, justified by the suitable Figure 3 proves the region’s leading position natural resources and specifics, as well as in growing cereal crops, amounting to 34% of traditions in this industry. According to data all registered bioproductions in the area. Next from the Ministry of Agriculture and Foods in place are pastures – 18%, followed by (15) in 2019 among the areas of South orchards – 17%. With a relatively low share of Bulgaria the South-East region has the highest representation are herbs – 13% (concentrated relative share of crops per arable land, and the in Straldja and Elhovo municipalities), and region of Yambol - the highest production of nuts – 11% (represented in Tundja cereal crops (including fodder), wheat and municipality). The lowest number of certified sunflower. As for wheat and sunflower producers remains for the sectors of vegetable production, the region of Yambol is among the production and yielding bee products. leading regions in the country with relatively

4% 3% cereals 18% 34% herbs fruits 11% nuts 13% 17% pastures, alfalfa bee products vegetables

Figure 3. Relative share of all farm practices certified for organic production in the region of Yambol as of April 2020. Source: Author’s calculations based on data from the Ministry of Agriculture and Foods,2020

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YARKOVA Y., et al. Figure 4 illustrates more specifically the each among the certified producers in the sub- shares of registered bioproducers in sub-branch branch), followed by the share of producers of “Cereal crops” which emphasizes the region’s sunflower (19%) and barley (15%). However role in the cultivation of this type of biofoods. less represented, organic producers of durum The data in Figure 4 underline the leading role wheat (12%) and rapeseed (4%) are still active. in the production of wheat and coriander (25%

12% 4% 25% wheat barley 19% coriander 15% sunflower rapeseed 25% spelt

Figure 4. Structure of the production in organic farming – sub-branch “Cereal crops” Source: Author’s calculations based on data from the Ministry of Agriculture and Foods,2020

Agriculture is a sector entailing much organic decentralized production of energy mainly for waste which is a potential for installing individual needs, in order to reduce the costs of biomass power plants. There are a number of energy logistics. studies on using biomass from the agricultural sector (16-18), which prove its efficiency as a RESULTS AND ANALYSIS OF THE renewable, perspective and easily absorbable CONDUCTED SURVEY AMONG THE energy source. The use of biomass for energy STAKEHOLDERS purposes saves fuel costs and reduces the A survey was conducted among stakeholders dependency of the country and regions. from the region of Yambol. The total number of questions was 11, from which 9 were about Another sector in the area of “Healthy living identifying specific practices in the thematic industry and biotechnologies”, which is area “Healthy living industry and represented in the region of Yambol is the biotechnologies”, one open question on the production of RES energy. A study conducted unique resources of the region of Yambol and in 2016 on the potential of renewable energy one open question on the main issues that need sources in the region of Yambol highlighted to be tackled in order to foster bioproduction in the leading role of power harvested from the region. The survey was prepared in photovoltaic installations (19). They are in electronic format and as such was sent to all second place of all solar installations used in stakeholders. The number of respondents was our country. It is important to underline that 87. Out of the total number 15% were students, the region of Yambol ranks third in the country 2% - unemployed, and the other 83% were for wind power installations concentrated involved in nine different spheres of work. In mainly in Straldja municipality. On the terms of educational background, 82% had territory of the municipality there are 6 wind higher, and 18% secondary education. The turbines and a wind energy park for harvesting shares of the respondents in terms of age show electricity. On the whole, Tundja municipality that the biggest part is within the age group of has the largest number of installed RES powers 41-50 – 31%, followed by people of 51-60 – followed by Straldja, and Yambol as third in 21%, and at third place -the participants this ranking. between 25-40 years of age – 17%. The share of the other age groups is as follows: between A social-economic analysis (2019) (1) shows 18-25 – 11%, between 61-70 – 16%, and over that a novel alternative use of RES is the 70 – 2%. Figure 5 shows the answers to the

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YARKOVA Y., et al. first question, regarding the presence of “Clean honey and bee products, bread, wine, dairy and production, storage, processing and delivery to meat products, essential oils, beer, herbs and the end consumer of specific Bulgarian herbal products, cosmetic means and ingredients, means and products (e.g. yoghurt, products)”.

Clean production, storage, processing and reaching the end user of specific Bulgarian products

3% No 31% I do not know 66% Yes

beer wine herbs oil bread meat bee products dairy products organic farming 0 5 10 15 20

Figure 5. Presence of “clean production” on the territory of the region of Yambol. Source: Data from the conducted survey

The responses illustrate two facts. On the one The responses to the other questions about the hand, a third of the participants have not been available practices relative to the thematic area informed about the existence of these of “Healthy living industry and practices, and on the other, mainly practices biotechnologies” (“Production of tools, related to the production of dairy and bee facilities, consumables for medical and dental products are known as “clean production”, diagnostics and therapy and/or participation in which only covers the part of the objective data supra-national production chain”; “Personal related to products for end consumption. medicine, diagnostics, and individual therapy, medicinal and drug forms and means”, Even though the region is known for its “Medicinal and recreational tourism with an producers in the branches of agriculture and emphasis on possibilities for personalization food industry, the answers to the question (not mainstream, but bespoke tourism)”) also related to the existence of production of show a high percentage of respondents specialized foods and drinks (e.g. baby, marking “I am unaware” – between 45-53%. children and “cosmic” foods) signal Practices that are indicated by the informed insufficient awareness (I am unaware – 48%), respondents are as follows: acupuncture, herb yet even those who know of such production cultivation, growing industrial hemp under (4%) have not specified the types of products.

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YARKOVA Y., et al. special supervision, presence of organized the region of Yambol. These are installations tourism, opportunities for walks to the Ormana for harvesting electricity from renewable sources – photovoltaic systems and wind area, the Town Garden and the Bakadjik area generators, as well as installations for biogas where air has healing properties for respiratory and water purification. To the question on the conditions, production of durum wheat, unique natural features of the region of processing of biomass and available Yambol for production within the thematic installations for biogas on the territory of the area “Healthy living industry and region. biotechnologies”, the biggest share of respondents agreed that organic farming is a Figure 6 illustrates the structure of the answers unique phenomenon for the region. The role of to the question about the presence of the suitable climate for developing hiking “Production of installations for harvesting tourism has been emphasized, as well as the ecologically clean electrical energy and reopening of recreational facilities in the industrial water” in the region of Yambol, Bakadjik area to stimulate the development of where specific practices have been indicated. this economic sector. The respondents state the The results show that 66% of the respondents possibilities and natural conditions for are not aware of these practices, because only harvesting electric power from renewable 34% have answered affirmatively and have sources. indicated the specific practices for obtaining “pure” electrical energy and “pure” water in

Production of installations for extraction of ecologically clean electricity and industrial water

34% 20% No I do not know 46% Yes

Water purification systems

biogas plants

Wind turbines

Photovoltaic installations

0 1 2 3 4 5 6 7

Figure 6. Presence of innovative practices for harvesting ecologically clean electricity and pure industrial water. Source: Data from the conducted survey

The main issues which must be tackled investment on the territory of the region. A big according to the respondents have been share is also taken by ecological problems presented in Figure 7. First is the need for related to separate waste collection and its financial stimulation and attracting foreign processing, polluted air in the municipal towns, Trakia Journal of Sciences, Vol. 18, Suppl. 1, 2020 457

YARKOVA Y., et al. and polluted sewage waters. It is necessary to well as the need for tax relief for businesses in build and maintain contemporary purification the observed directions are also among the stations for protecting water resources in the problems indicated as being on the agenda. region. The issues of administrative nature, as

necessary financial incentives

environmental problems

need for tax relief

administrative problems

0 2 4 6 8 10 12 14

Figure 7. An overview of the responses to questions on issues which need tackling in order to stimulate organic production on the territory of the region of Yambol. Survey: Data from the conducted survey

CONCLUSIONS AND as each incentive would increase the activity RECOMMENDATIONS when applying for grants in the sphere of For the observed period a significant increase bioeconomy within the different Operational in the registered certified bioproducers has programmes. been noticed, which reflects the priorities in the sector of bioeconomy and circular Additional measures are needed for economy and becomes a leading bioeconomic encouraging municipalities in the region to direction in the region of Yambol. evaluate local bio-resources, as well as to utilize them through innovations. A distinct contradiction between the growing share of organic farming practices with It is also necessary to launch a study at a level pastures and the very small share of livestock of economic subjects to identify practices, farms within bioproduction creates the need for integrating research achievement at all stages - additional research on this issue, and for more production, processing, realization of the end measures for using available potential. product. In this respect, the Yambol based Faculty of Technics and Technology must play The innovative practices of photovoltaic and an active role in the region as a structural unit wind installations which are very well of Trakia University which is as a leader in the developed at a regional level may extend their area of agrarian sciences. range to reach a larger scale green growth through investment in RES for individual use. REFERENCES: 1. National Center for Territorial The low awareness of stakeholders in the area Development, Socio-economic analysis of about the active practices in the thematic area the regions in the Republic of Bulgaria, of “Healthy living industry and Sofia, 2019, pp 14-15, 32 biotechnologies”, as well as some issues 2. Green Innovations.bg, Development related to the administrative and financial Potential, Applied Research and restrictions for businesses from the Communications Foundation, 2014, стр.7 bioeconomy sector determine the need for 3. https://www.oecd.org/env/44077822.pdf developing measures in their support both at a 4. Markov N., Economic Framework of the regional, and at a national level. Bio-Based Primary sector in Bulgaria, Trakia Journal of Sciences, Vol. 17, Suppl. Supporting bioproduction is decisive for 1, pp 94-98, 2019 retaining bioproducers on the market and expanding the sector regionally and nationally, 458 Trakia Journal of Sciences, Vol. 18, Suppl. 1, 2020

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