Science, EngineeringNikolay Karev, & Education, Angelina 2, Terzieva (1), 2017, 77-82

Analysis and assessment of technology transfer opportunities in the apparel manufacturing sector

Nikolay Karev, Angelina Terzieva*

Department of Economy and Management, University of Chemical Technology and Metallurgy, 8 Kl. Ohridski, 1756 ,

Received 13 July 2017, Accepted 27 September 2017

ABSTRACT

On the basis of the performed analysis, it is found that at present existing apparel and textile institutes do not carry out research and development activities related to the technological development of the apparel manufacturing sector. A predominant part of enterprises do not have a scientific basis, do not carry out independent research and development activity and do not have qualified personnel available for developing and implementing new technologies. This determines that the technology transfer in apparel manufacturing sector to be an external resource of the company for achieving economic growth in long term. Keywords: technology transfer, apparel manufacturing, opportunities, competitiveness.

INTRODUCTION foreign markets, the apparel manufacturing enterprises have more and more difficulties Apparel manufacturing is one of the old- in distribution of their products, as on do- est, completely separate and autonomous, and mestic market so abroad. One of the essential traditionally important in its significance and reasons for this is that the strong competition place industry sector. Nowadays, as in the past, from other apparel producers that have similar it occupies an important place in the economic competitive advantages. On the basis of the life of the country, ensuring the satisfaction of specified situation in the sector of the apparel population needs of apparel. As for the Bulgarian manufacturing, the reasons for carrying out the conditions, the sector could be characterized by analysis and assessment are outlined in relation good resource provision, availability of material- to the setting of the opportunities on technol- technical base, established production traditions. ogy transfer that could provide guidance in However, at the same time, it cannot be improving the producer competitiveness in ignored the fact that after the loss of traditional this industry sector.

*Correspondence to: Angelina Terzieva, University of Chemical Technology and Metallurgy, 8 Kl. Ohridski, 1756 Sofia, Bulgaria, E-mail:[email protected]

77 Science, Engineering & Education, 2, (1), 2017

RESULTS AND DISCUSSION of apparel on the world market is determined by the following main factors: geographic disposi- Ever since the beginning of the 20th century, tion of our country, good technological potential the tailoring industry is subjected to the influence and the flexibility of enterprises, low wages, the of a number of internal and external factors that achieved image of good quality and long years of require its organized large-scale restructuring, experience in apparel manufacturing. These factors whose implementation needs clear and precisely are particularly important when ordering a smaller followed national strategy and policy. Apparel series of branded apparel. Apparel export is in the manufacturing sector has always been the main following zones: European Union - 80 % (with source of revenues for the country. Until 1989 predominant share for Germany, Italy, France and the relative share of total industrial production Hungary, and the United States and Canada - 10 %, sector amounts to over 2 % of the total industrial the countries of the CEE - 4 % of export and other production of the country. Within this period, Bul- countries 6 % [4]. garia is one of the major manufacturers of apparel There is an increase in demand of apparel on and a major supplier on the market of the former the domestic market. Retail sales in 2014 increased socialist countries. In this period, the exports of by 28 % in comparison to 2010, and 15 % towards textiles, apparel and leather for the non-socialist 2012. However, the internal market is a determinant countries amounted to about 40 - 50 million US for the Bulgarian apparel manufacturing [5]. dollars per year [3]. As for the scientific and technical service of In the years after 1989 apparel sector produc- apparel manufacturing enterprises , it should be tion falls into the group of the most highly affected pointed that until 1989, this function was per- by the economic changes in industrial sectors of formed by State Economic Association (SEA) the country. In the first years of the transition pe- Rila, which is managed all enterprises for apparel riod nearly 40 000 employees were dismissed from manufacturing in the country /Vitosha in Sofia, the enterprises. The average wage was below the Bulgaria in , Misia in , Pioneer social minimum, production stay reached 35 % of in Biala, Slatina in and Vida in the working time. A large part of the enterprises , etc. In enterprises structuring each of were not working for months and the employees in these specialized units are being constructed for them were in the group of socially disadvantaged the specialised divisions for development activ- people. However, the majority of the Bulgarian ity, which with the help of competent specialists enterprises for apparel manufacturing, managed to implement economic and technical policy for the survive and adapt to the new external environment further development of the apparel manufacturing thanks to the fast reorientation of the market and sector. Along with this structure, there is a State production structure as well as the good qualifica- Institute of apparel and ready-to-wear clothes tion of employees. (VEDA) [1, 2]. It should be specified that for 2015 the relative After 1989, with the restructuring of the share of proportion in the total industrial produc- industry, management of the enterprises apparel tion for the industry amounts to about 6 % of the manufacturing were dismissed development divi- total industrial production of the country, and sion, a plant Vitosha that is the largest and most more than 80 % of the produced in the country modern plant in Europe, stopped its existence. apparel (work outfit, coats, sports, both for men The State Institute of apparel and ready to wear and for women) are designated to external mar- clothes, which had good equipment and facili- kets through subcontract manufacturing. Suc- ties, terminated its activities in the first year of the cessful distribution of the Bulgarian producers transition period due to lack of state funds and 78 Nikolay Karev, Angelina Terzieva own developments on the orders by the enter- which does not include design, construction and prises in the sector. Up to the establishment of the modelling for creating new models and the lack specialised cluster and Institute of Apparel and of information on the application of the method- Ready to Wear Clothes Danube in 2006 and the ologies developed in other countries shows that National Institute of Apparel and Ready to Wear scientific and technological developments from Clothes (NIARWC) in February 2007, which is the TU and TC do not find application in practice. the successor of the experience, long-standing In the TU and TC there is no means of car- practices and traditions of the closed State In- rying out training in line with the opportunities stitute of Apparel and Ready to Wear Clothes, and requirements of the production due to lack Bulgaria was the only country among the former of proper facilities [7]. Moreover, in recent years socialist countries and the only country in the due to a lack of students at the departments at EU that has no National Institute of Apparel and the referred universities and TC ceased their Ready to Wear Clothes. independent existence. They will be soon closed The main priorities of these institutes are and a small part of them will merge with other providing consultancy in the field of textile and departments. These negative trends over the years tailoring industry, training activity, covering all led to a reduction of the teaching staff and the stages of production, planning of the production inability to conduct training and carry out the cycle, management and marketing of the enter- scientific and technical activity. The situation is prises, development of innovative products and similar to the vocational schools, where due to building a modern test laboratory in accordance lack of students and suitable facilities (in Stara with European standards. Zagora, , , etc.) do not provide Observing the activities of the institutes from specified qualification. their establishment to the present, the main activ- Due to the lack of legal base, that regulate ity is related to organising of workshops, exhibi- funding of the scientific researches, different tions, training and qualifications and performing enterprises share funds only on short term activi- laboratory tests, current activities and main forms ties. Future period scientific researches are not of institute financing. The goals of innovation financed. This leads to decrease of the level of implementation, scientific and technical devel- the scientific and implementation achievements opment related to the technological progress of in the sector of apparel manufacturing and the enterprises in the apparel manufacturing sector information servicing of the producers. are not included in the activities of the institutes. Therefore it is necessary the technology Scientific and technological services and transfer to be implemented as one of the universal preparation of frames is performed in universi- levers for effective management, which allows ties (U) technology colleges (TC) and vocational economic growth and competitiveness to be schools (VS) referred to in Table 1 [8]. achieved with the lowest cost of resource short- Observation of the scientific, technical and age. It should be noted that technology transfer in innovation activity of above referred universi- apparel manufacturing will be a long term external ties (U) and technology colleges (TC) show that resource for economic growth or the technology scientific and applied researches in the field of import and production export. apparel are associated with the development of At present, the predominant part of apparel methodologies or improvement of such that are manufacturing enterprises does not have a sci- related with apparel design [6]. Considering the entific basis. They do not carry out independent main form of production in the sector for the ap- research and development activity, but have the parel manufacturing – subcontract production, potential for development and implementation 79 Science, Engineering & Education, 2, (1), 2017

Table 1. Scientific and technical services and personnel training for apparel manufacturing sector. Schools Name Qualification Universities Sofia Technical University Textile machinery and textile technology Technical University Textile machinery and textile technology Northwest University Neofit Rilski Design and technology in tailoring in production Technological TC in Blagoevgarad at Northwest Textile machinery and textile technology Colleges University Textile machinery and textile technology TC in Blagoevgrad at the Thracian Textile machinery and textile technology University Textile machinery and textile technology TC in Sliven at TU Sofia, TC in Textile machinery and textile technology at TU Gabrovo Vocational of clothing and textiles Hristo Design, Modeling and technology of Schools Boyadziev in Pleven clothing from textile, fashion design. of clothing Anna May in Plovdiv Fashion design, design, modeling and clothing technology of textile and fashion design in Fashion design, design, modeling and Sofia clothing technology. Clothing technology, sewing machine of apparel Princess Maria Luisa in operators. Sofia Fashion design, modeling, and fabrication of clothing Nedka Ivan Lazarova of textile clothing. in Rousse of textile and apparel Stefan no qualification Karadza in Elhovo of textile and fashion design in Fashion design, computer design of Varna textile area of apparel and catering Raina Knyaginya the textile apparel Dobri no qualification Zheliazkov –Sliven of apparel, food and chemical no qualification technologies Prof. Dr. Asen Zlatarov in Shumen no qualification of innovative solutions. These enterprises are not The function of the institutes is to organise the leaders in technological terms, but rather follow- distribution and to provide (individual or collec- ers who are using technologies and innovations tive) innovative services to apparel manufactur- developed elsewhere. ing enterprises with an adequate capacity. They Technology transfer centres are one of the could create the potential for establishment of means for improving the enterprises innovative- clusters. The cluster, which by its nature repre- ness in the tailoring industry. For the sake of sents a technological and product related busi- strengthening the intermediary infrastructure, it is nesses, is actually a small innovation system important to be established institutes/centres for that develops innovative activities on specific transfer of innovative achievements and products. technology, sets a specific production cycle and/

80 Nikolay Karev, Angelina Terzieva or a specific region. opment activities. On the other hand, cooperation Apart from the scientific capacity of the in the field of innovation is based mostly on the companies, an important function for the devel- informal networks. They could be both stimulated opment of the innovation process in the sector and organised. Stimulation of intercompany co- have the branch organisations, providing busi- operation is of a great importance. ness services and creating partnerships between On the basis of the performed analysis of the public institutions and private companies. The situation and opportunities apparel manufactur- public enterprises and agencies serve as regional ing industry, it could be performed a situation development and innovation centres. SWAT analysis which define the link strengths At present, most of the existing enterprises - opportunities, weakness - threats. do not have qualified personnel for developing and implementing new technologies in order Strengths: to increase the volume, quality of production, l Long years of experience and traditions in develop new product, new design, collections the field of the apparel manufacturing or other innovative activities. Therefore, they l Approved high quality production do not use their innovation capacity. For this l Experience and knowledge on production purpose they need to hire professionals that l Positive image among users and assignors in most cases are expensive or risky. Support l Loyalty and fair treatment of every partner programmes for enterprises in the industrial- l Long-term contracts for materials deliveries ized countries are widely spread. They mostly offer subsidies to existing enterprises in the Weaknesses: recruitment of highly qualified young profes- l Strong dependence on particular key cus- sionals. Given the mobility of human resources tomers these programmes are the most direct method l Lack of organization of domestic trade for increasing the innovative capacity of the l Qualified staff decrease tendency which sector. This is one of the preferred policies to shall result in shortage of professionals in the enhance innovation of the enterprises in the near future apparel manufacturing sector, that do not have the financial and human resources to carry out Opportunities: research and development activities. l Market share increase In order to increase the innovative capacity of l Opportunities for differentiation of the enterprises in the apparel industry, it is necessary product range to promote the cooperation between innovative l Opportunities for expansion to new foreign companies, public and private research and de- markets velopment organizations. There are a few exam- l Promotion of information transfer regarding ples of how you can set up such partnerships in new inventions and possibilities Europe. The technology centres are an example l New business models in the field of services of a successful approach; they are usually public l Promotion of capital, know-how, technolo- and private research centres that accept orders for gies and design transfer research projects with the applied nature of the l Attraction and promotion of sector investments industrial sector. Apart from the technology centres, a main Risks: source of innovation is the big companies, which l Constant increase in national and interna- have financial resources to afford funds of devel- tional competition 81 Science, Engineering & Education, 2, (1), 2017

Price competition technologies shell be used that comply with the l Dependence on raw materials and their European and world quality control standards. delivery At the same time, this approach provides good l Downturn of qualified manpower due to opportunities for the establishment of joint ven- low remuneration tures aiming at obtaining additional loans for l Limited local market technological re-equipment. l Unsatisfying education and training l Need of investment in security and provid- REFFERENCES ing better working conditions l Dependence of the companies on key 1. G. Damyanov, A. Chervendiev, Textile Industry customers in order to perform their business in Bulgaria, Tehnika, C, 1982, (in Bulgarian). activities. 2. T. Tsonkovski, 40 years Vitosha Plant, University Publishing House St. Kliment Ohridski, C, 2009, CONCLUSIONS (in Bulgarian). 3. 180 Years of Light Industry in Bulgaria, Textile Technology transfer could be observed as one and Apparel Magazine, Jubilee edition, 2014, of the methods on increasing the competitive- (in Bulgarian). ness of enterprises for apparel manufacturing 4. Bulgarian Association of Producers and Exporters through the implementation of new technological of Apparel and Textiles (BAPEAT). Textiles and equipment. For the sake of its implementation, Apparel Jubilee Edition, 2014, (in Bulgarian). basically two approaches could be used. The first 5. Statistical Yearbook 2015. method is related with the acquisition of licences 6. Bulgarian Association of Textiles and Ready and know-how of known technologies, products, to Wear Clothes. NTS of Textiles, Apparel and and trademarks of foreign companies. The second Leather, , 2004 www.arcfund.net/ one is related to the deployment of own scientific fileSrc.php?id=764 and technical capacity. It has perspective but it 7. K.Trifonov, Problems of Higher Education requires overcoming of many financial and or- in Textiles and Apparel in Connection with ganizational management difficulties. the Development of Tailoring Production in Based on the analysis and taking into account Bulgaria, Textiles and Apparel Magazine, ed. the present situation and the state of scientific 3, 2008, (in Bulgarian). and technical service of the enterprises in apparel 8. www.mon.bg. Accredited high schools in manufacturing sector, it could be concluded that it the Republic of Bulgaria as of 1.06.2017, is more appropriate the first approach to be used. Classification of Secondary Schools in In this manner, it well verified in the practice Bulgaria, (in Bulgarian).

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