Dermination of Regional Research and Innovation Hubs in Bulgaria: Exploring Knowledge-Based Ecosystems

DERMINATION OF REGIONAL RESEARCH AND INNOVATION HUBS IN BULGARIA: EXPLORING KNOWLEDGE-BASED ECOSYSTEMS

Evgeni Evgeniev, Wendy M. Purcell

ОПРЕДЕЛЯНЕ НА РЕГИОНАЛНИТЕ НАУЧНОИЗСЛЕДОВАТЕЛСКИ И ИНОВАЦИОННИ ХЪБОВЕ В БЪЛГАРИЯ: ИЗСЛЕДВАНЕ НА ЕКОСИСТЕМИ, ОСНОВАНИ НА ЗНАНИЕТО

Евгени Евгениев, Уенди М. Пърсел

Abstract: The study analyzed the regional research and innovation assets in Bulgaria in order to determine the capacity of the national knowledge-based ecosystem. This assessment identified regional knowledge hubs relevant to delivery against the Innovation Strategy for Smart Specializationof Bulgaria.Тhere is substantial concentration of knowledge assets in the capital city with limited connection to regional assets. Strengthening connections among the research and innovation facilities as well as networks among knowledge workers has the potential to materially advance Bulgaria’s knowledge-based ecosystem. The knowledge economy relies upon social processes sustained by close proximity among knowledge assets creating research and innovation districts or hubs. Recognizing more explicitly the regional strengths as hubs in a connected ecosystem would advance delivery of the national smart specialization strategy. In this way, the knowledge economy would be enabled to deliver more to advance Bulgaria’s ambitious national agenda within Europe. Key words: innovation and research hubs, smart specialization strategy, knowledge-based ecosystems.

Резюме: Проучването анализира регионалните научни и иновационни активи в България, за да определи капацитета на националната екосистема на знанието.Настоящата оценка идентифицира регионалните научноизследователски хъбове в съответствие с изпълнението на националната иновационна стратегия за интелигентна специализация на България. В столицата има значителна концентрация на научноизследователски активи, които имат недостатъчна взаимовръзка с регионалните активи. Укрепването на мрежите между институциите за научни изследвания и иновациите, както и установяване на мрежи сред научните изследователи, имат потенциал да допринесат съществено за подобряване на екосистемата на знанието в България. Икономиката на знанието разчита на социалните процеси, които се поддържат от близостта на активите на знанието, които създават научно изследователски области или хъбове. По- ясното признаване на силните страни на региона като хъбове в една свързана екосистема ще подкрепи изпълнението на националната стратегия за интелигентна специализация. По този начин икономиката на знанието може да постигне повече за напредъка на амбициозната национална програма на България в рамките на Европа. Ключови думи: иновационни и научноизследователски хъбове, стратегия за интелигентна специализация, екосистеми, основни на знанието.

Introduction

The growth strategy of the European Union (EU) reliesupon the development of economic planning regions such that policy measures at a regional level are a necessary precondition for the exploitation of the research and innovation potential in the EU.1 The policy arena at the regional level includes a variety of stakeholders, including local authorities, economic and research institutions, as well as non-governmental organizations (NGOs) and social actors. The cultural and spatial proximity among these and with business and industry is considered to be crucial in framing a knowledge economy underpinning the European Research Area (ERA).2 European cities as diverse as Barcelona and Eindhoven, Berlin and Rotterdam have driven forward their economic success through strong collaboration between public, private and knowledge sectors in their respective regions (Terkanli, H., 2019). The present study analyzed the regional research and innovation assets in Bulgaria in order to identify the capacity of the knowledge ecosystem. Against this assessment, the study went on to propose regional research and innovation hubs in the country in line with the national innovation strategy of smart specialization (Ministry of Economy, 2017). This study draws upon the findings of two reports (Evgeniev, E., 2017; Ministry of Education and Science, 2018) that considered data secured from meetings with over 500 stakeholders (local/regional authorities, academics, researchers, businesses, NGOs and experts), consulted in the cities of Ruse, Pleven, Blagoevgrad, Plovdiv, Varna and Burgas between February and April 2018. In addition to these six city meetings, four other meetings were held in Sofia. The consultations generated in-depth discussions, which have contributed to the analytical insights of this study, and served to illustrate significant regional disparities of the Bulgarian research and innovation system. The concept of a regional research system is represented (see Figure 1) through the interactions among three principle organizational archetypes, namely: (i) research undertaken in and with higher education institutions; (ii) private-enterprise research, which is connected to business and industrial development; and (iii) public research institutes or non-profit organizations connected with social enterprise and innovation.

Figure 1: Conceptual framework of a regional research system

Enterprises

RESEARCH INNOVATION SYSTEM SYSTEM Universities

EDUCATION SYSTEM

Source: Kroll and Stahlecker, 2009.

1 See, EU 2020 Strategy, available at: https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal- policy-coordination/eu-economic-governance-monitoring-prevention-correction/european- semester/framework/europe-2020-strategy_en 2 David, P. and D. Foray (2003, p.27) talk about knowledge-based communities as agents of economic change. 9

The research system is intimately inter-connected with the innovation system and also connected to other regional socio-economic sub-systems (for example the education system and socio-economic profile of the region) (Purcell 2012; Purcell in Witty Review, 2013). While the research system itself creates knowledge and is a source of innovation,it is not necessarily focused on or geared towards the transfer or exchange of that knowledge to create economic and/or social value. The transfer of knowledge is considered to be part of the innovation system, which is fostered by a range of enterprises from individual entrepreneurs and social enterprises through to large multinational corporations. The tertiary (higher) education system (typically universities and technical colleges) is linked with the development of human capital, in terms of both knowledge and skills, but it tends not to be involved in workforce planning at a national level. There is however a clear connection with research work, with quality research undertaken in universities as well the training of PhD and Masters students. In this way, universities serve as an organizational bridge between research and innovation, with business and enterprise serving as bridging organizations between research and innovation (Krolland Stahlecker, 2009). This means that we must include the consideration of private enterprises alongside research institutes and universitieswhen research policy and strategy aredeveloped. The regional knowledge systems in the EU, with their specific characteristics, are more than just the sum of their national research systems. Given the degree of autonomy and socio-economic profile of member states, the regional knowledge ecosystems differ substantially in terms of technological capability and innovation capacity and the ERA seeks to provide a framework that encourages collaboration such that the overall capacity is increased. A regional knowledge ecosystem is an analytical concept which accommodates the presence of regional actors (enterprises, public and private research and higher education institutions) in which research is performed as a core activity and this is networked with other parts of the economy; this applies to strongly to so-called applied research and is also relevant in the consideration of basic „bue-skies‟ research (Witty report, 2013; Ministry of Economy and Energy, 2016). The national policy context for the present study is given in order to articulate the inputs and outputs of the overall knowledge system. Then, the distribution and role of universities and research institutes is described at the regional level alongside the socio- economic profile of the regions. Finally, potential regional research and innovation hubs are proposed in line with delivery against Bulgaria‟s smart specialization strategy and overall economic ambitions.

Policy Context

Given that national efforts to secure global competitiveness are enabled by policies and instruments to improve research and innovation in business, the present study has explored how Bulgaria‟s knowledge ecosystem can be strengthened (Ministry of Education and Science, 2018). Innovative and technology-driven firms are supported by targeted government interventions and EU policies are focused on these processes through targeted funding under EU Structural Funds and competitive programs. For example, Horizon 2020, COST, COSME and other programs, bring science and business closer in an effort to drive the knowledge economy. Bulgaria, as a member state, has yet to fully develop its national innovation and research capacity to be able to fully benefit from such EU instruments. The term “smart specialization” came to the fore in Bulgaria in 2012. A series of analytical studies were prepared to support the development of an Innovation Strategy for Smart Specialization (IS3) for Bulgaria, as required by the European Commission in the form of ex-ante conditionality for EU Structural Funds for innovation and research (Ministry of 10

Education and Science, 2018). Organized by the Ministry of Economy between 2013 and 2017, a series of meetings were held in the capital of Bulgaria and roadshows delivered in the six planning regions. Representatives of the Ministry of Education and Science joined these events to support the analysis through a so-called „entrepreneurial discovery process‟, generated by the stakeholders of the national science, technology and innovation (STI) system. IS3 for Bulgaria was approved in mid-2017, and outlined four priority sectors of the economy which have the highest innovation and research potential, namely:

(i) Mechatronics and clean technologies; (ii) Informatics and Information and Communication Technologies (ICT); (iii) Industries for life sciences and biotech, and (iv) Creative and recreational industries.

As a result, Operational Program Science and Education for Smart Growth directed funding for development of Centers of Excellence (CoE) and Centers of Competence (CoC) in these key areas under priority axis 1 with a funding envelope of ca. EUR 280 M. The call for CoE and CoC was delayed for couple of years and closed in February 2017, with results announced in February 2018. Three CoEs and 7 CoCs were selected which now form the core of the Bulgarian STI system.Since Fall 2017, OP Innovation and Competitiveness managed by the Ministry of Economy, funded several calls for start-ups, small-and-medium-sized enterprises (SMEs) and more mature companies for innovation and entrepreneurship initiatives which channeled another EUR 740 M. to the STI system.3 As a result of IS3, the sectoral ministries, otherwise, traditionally separated, came together in working meetings with stakeholders and national/international workshops and started planning projects together. Sofia Tech Park JSC came into existence in Fall 2015, funded under OP Competitiveness with EUR 50 M., including a laboratory complex with 11 research labs, equipped with modern facilities for life sciences and biotech, ICT, green energy and clean technologies, food and agriculture and an innovation hub, with presentation facilities for the national innovation eco-system.4 In 2016-2017, the term “regional smart specialization” became of interest as the Ministry of Education and Science prepared a report, entitled “Diagnostic Review Mapping of Research Infrastructure and Equipment”, as required by Directorate-General Regional and Urban Policy of the European Commission. The report demonstrated regional research specialization in Bulgaria, as shown in Table 1:

Table 1: Regional Specialization per Research Area in Bulgaria

Region/ Physics, Medical Social E- research area material Science Science and Infrastructures science and &Agri- Humanities for engineering Bio multidisciplinary Science research North-Western n/a * n/a n/a North-Central ** ** * * North-Eastern *** ** ** * South-Western *** *** *** *** South-Central * *** *** n/a South-Eastern *** *** * *

3Information is available at: http://2020.eufunds.bg/bg/5/0/OPProfile. 4 More about Sofia Tech Park JSC is available here: http://sofiatech.bg/en/ 11

Source: Ministry of Education and Science of Republic of Bulgaria (2017b). Note: *** (high level of presence of research infrastructure); ** (mid-level); *(low- level); n/a – not available. The Diagnostic Review underpinned the preparation of a National Roadmap for Research Infrastructure by the Bulgarian Ministry of Education and Science (2017a), which outlined 23 national research infrastructures; the review was approved in June 2017. The National Roadmap forecast budget spending of about EUR 0.5 bln. between 2018 and2023 (2017b). However, less than EUR 5 M. has been spent in the first half of 2018 for national research infrastructure. On May 23, 2018 with CoM Decision No.87, the government approved EUR 5.5 M. for financing of national research infrastructures in concordance with the policy for financing of the National Roadmap for Research Infrastructures of Bulgaria (Ministry of Education and Science). At the same time, the Ministry of Economy developed “Technological Roadmaps for Bulgaria”, which demonstrated regional business specialization.

Table 2: Regional Business Specialization

Region/research Mechatronics Industries for Cultural Informatics area and Clean Life Sciences and and ICT Technologies and biotech Creative Industries North-Western n/a * ** * North-Central ** ** * * North-Eastern n/a ** ** ** South-Western *** *** *** *** South-Central *** n/a ** ** South-Eastern n/a n/a * * Source: Ministry of Economy of Republic of Bulgaria (July 2016). Available at: www.mi.government.bg Note: *** (high level of business presence); ** (mid-level); *(low- level); n/a – not available.

Table 2 shows very weak regional business specialization across all the four priority areas of IS3, except for the South-West region, where the capital is based.

Inputs and Outputs of the System

 Research and Development (R&D)Funding in Bulgaria

Bulgaria sits in the lower decile in the EU in terms of R&D spending. There are six planning regions in Bulgaria and the South-Western region where the capital, Sofia, is located, leads the way. It attracts R&D funding with around 75.5 % of all R&D expenditures as per National Statistical Institute (NSI) 2016 data. The second economic region with highest R&D expenditures is South-Central region with 7.7 % of overall R&D funding. All other four regions have each attracted around 4 % of all R&D funding.

Table 3: Regional distribution of R&D financing in Bulgaria, 2015

R&D % of all expenditure, R&D % of Economic BGN m. in GDP in BGN R&D planning regions 2015 m. in 2015 budget North-Western 33,265 6 013 3.9% 0,55 South-Central 37,218 7 078 4.4% 0,53 North-Eastern 35,566 9 655 4.2% 0,37 South-Eastern 36,413 10 826 4.3 % 0,34 South-Western 639,665 42 430 75.5% 1,51 South-Central 65,117 12 569 7.7% 0,52 Total: 847,24 88 571,32 100% 0,96 Source: NSI (2016).

 Publications

There were 23,396 research publications generated between 2011 and 2016 by 15,066 authors in Bulgaria as per the SciVal platform. A total of 103,272 citations are estimated, which is equivalent to 4.4 citations per publication. Most of the publications are in the fields of physics and astronomy (13.1% of total), Medicine (12.4%), Chemistry (7.3%) and Agricultural and Biological Science (7.2%).Based on the metrics in the SciVal analytical platform the output of the country is mainly in the fields of Physics, Chemistry, Biological Science and Engineering. Despite the observed low share of publications in the field of Environmental Science, Social Science and Humanities, their citation impact is relatively highcompared to that of leading scientific fields.

Figure 2: Top 15 best performing research organizations in Bulgaria, 2011-2016

Source: SciVal, January 2017.

 Patents

Figure 2 shows the publications and citations by individual research organization across Bulgaria. The lead research organization is the Bulgarian Academy of Sciences (BAS) with its 43 research institutes, followed by Sofia University, Medical University – Sofia, Technical University - Sofia, the University of Chemical Technology and Metallurgy, and Plovdiv University “Paisii Hilendarski”, among others.

Figure 3 shows the Bulgarian patent activity. Activity ofthe United States Patent and Trademarks Office (USPTO) in the period 2000-2014 is higher compared to patent activity at the European Patent Office (EPO) overall. There are 903 patent applicants and 303 registered patents at USPTO and a positive trend since 2012 is noted. Although Bulgarian patenting activity has been increasing in recent years, it should be noted that it still remains far behind the average international standard for middle income economies. A perceived or actual lack of effective mechanisms for Intellectual Property Rights (IPR) protection and lack of formal IPR policy for universities and research institutes, as well as businesses in Bulgaria, may account for this difference. As per data from the Official Bulletin of the Patent Office of the Republic of Bulgaria (PORB), most of the patents that are registered in the Bulgarian patent office are held by individuals. Higher Education institutions have a very limited role in patent applications and registrations.

Figure 3: Number of Patent registrations by higher education institutions, 2007-2016

Technical University - Varna 1 1 University of Chemical 3 Technology and Metallurgy - Sofia 9 Technical University - Sofia

4 Lyuben Karavelov Higher School of Building and Construction

Source: official PORB bulletin.

Given the low patenting activity by higher education institutions, very few companies (spin-offs, spin-outs) have been created by public universities in Bulgaria. As far as business enterprises and their patent activities is concerned, there are only 11 Bulgarian companies that have registered more than three patents for a decade, which is low compared to international standards.

 R&D personnel

Figure 4 shows that the numbersof personnel involved in R&D in Bulgaria is growing. This trend is also seen in the business sector, likely at the expense of the personnel joining the government institutions.

Figure 4: R&D Personnel in Bulgaria, by sector

35000 32 306

30000

Total R&D 25000 Personnel

Business 20000 enterprises 16 853 Government 15000 13 565 11 353 Higher 10 025 education 10000 Non-profit 8 644 institutions 5000 3 166 2 273 61 72 0

Source: National Statistical Institute, 2018.

There is a growing number of PhD students in Bulgaria, which are estimated at 6,738 in the 2016/2017 academic year, compared to 4,703 only five years earlier. According to NSI, the number of PhD defenses in a year has doubled during the same period; in 2016/2017 it stood at 1,464. It is interesting to note that there is no separate administrative data category of post doctoral researchers in Bulgaria, as per European Framework for Research Careers. Therefore, it is difficult for new researchers to move to tenure-track positions in the national research system and this lack of career path likely impacts negatively on research as a career choice with progression through academic posts from Postdoctoral positions to assistant- professor, associate professor and Professor. Exceptions to this systematic progression via promotion may be agreed in line with national talent and/or institutional strategies. International best practice recommends that key components of an Academic Promotions process will include a Performance Development Review at which an employee‟s research outputs, impact and plans are discussed. Moreover, an action plan should be agreed, with on- going coaching and career discussions held throughout the year. Furthermore, senior research leaders should review the academic career pipeline no less than twice per calendar year. An individual‟s performance, i.e. how a member of staff has performed against their objectives, together with discussions that relate to their potential, i.e. their ability and aspiration to undertake increasingly senior roles in the future, should be held to ensure talent management is an active process.

Regional Distribution of Key Actors

Bulgaria is traditionally highly centralized and has not yet developed a regional dimension to its research and innovation policy. Innovation-related measures and support programs remain coordinated at the central level and to rebalance the economy will need to connect with regions through an innovation network. Figure 5 shows the distribution of 15 higher education institutions and research institutes across Bulgaria and clearly reveals regional disparities in knowledge-based assets.

Figure 5: Regional Distribution of Higher Education Institutions and Research Institutes of the Bulgarian Academy of Sciences and the Agricultural Academy in Bulgaria

Source: Ministry of Education and Science, June 2018.

The research and innovation potential of the North-West region is relatively low. The Medical University of Pleven is the only university in the region, while Ruse University has a small branch, educating fewer than 100 students, in the town of Vidin. Vratza is a place where a medical college and pedagogical college (not stand-alone ones) were set up many years ago. The region, however, has a good network of vocational training high schools. The prevalence of SMEs and micro firms with restricted capacity for purchasing and adapting innovations also affects the innovative performance of the region. The four research institutes in the region are in agri-food and focused on certain crops and agricultural practices - maize, vinery and winery, forages as well as animal breeding and agriculture. The region lacks general innovation suppliers; thus, innovation partnerships are underdeveloped. The IT industry is present in Pleven. No activities of the priority sectors of the economy are present in the North West region. The research and innovation potential of the North-Central Region is relatively high due to it hosting five universities with national significance: D.A. Tsenov Academy of Economics in Svishtov, Ruse University “Angel Kanchev”, Technical University in Gabrovo, and the Veliko Tarnovo University “St. Kiril and Metodii” . These also represent the research capacity and innovation suppliers for the region. Applied research in agri-food is carried out in one research institute of the National Academy of Agricultural Sciences. Active organizations and structures in this regard are the Business Incubator in Gabrovo, the Business Support Centre for SMEs in Ruse (regional node of the Enterprise Europe Network) and the consortium High-Tech Park in Veliko Tarnovo. Agricultural production dominates in

16 the North Central Region. IT activities are present in Veliko Tarnovo, and Razgrad. An automobile assembly industry is present near Lovech, involving Chinese investment for the assembly of new cars, the company, however, has downsized substantially its activity. The research and innovation potential of the North-East region is concentrated in the city of Varna. This city hosts five higher schools of: Medical University, Technical University, University of Economics, Naval Academy “N. Y. Vaptzarov” and Varna Free University “Chernorizec Hrabar”. Applied research in agriculture and fishery is carried out in three research institutes of the National Academy of Agricultural Sciences. Two institutes of the Bulgarian Academy of Sciences specialize in ocean studies and hydro-and aerodynamics and work closely with the Technical University and the Naval Academy in Varna.The analyses on the structure and operation of the regional innovation system show good links between research, academia and industry in certain fields, such as marine technologies and information and communication technologies. Active intermediary organizations are the Regional Agency for Entrepreneurship and Innovations - Varna with the launch of a Hi-Tech Park, the Business Incubator and Innovation and Technology Transfer Centre, Dobrich Chamber of Commerce and Industry (regional node of the Enterprise Europe Network in Bulgaria) and the JOBS network of business centers and incubators in small and remote municipalities. Agricultural production and IT service activities dominate among the priority sectors. The South-East region is not among the regional research and innovation leaders; however, it has a significant concentration of researchers in the chemical and agricultural industries, and in the field of information technologies and energy efficiency with the Technical University branch in Sliven. The region hosts over twenty research institutes, the most prominent being the petrochemical research institute in Burgas, the agriculture institute in Karnobat, and the livestock selection centers in Sliven. Agricultural and IT services activities dominate around the city of Yambol. The research and innovation potential of the South-Central region has been most adversely affected by transition from a planned to a market economy; the majority of sectoral institutes and enterprise research units were closed in the early 1990s. Research and innovation in the region is predominantly in the agricultural sector and the food processing and the region‟s excellent regional research institutes and universities have the potential to become national centers of excellence. The premier research university in the region is the Plovdiv University "Paisii Hilendarski". Despite that, employment in high-tech industries and knowledge-intensive services is lower than the national average, the region lags the Southwest region. The most advanced ICT hub in Bulgaria (after Sofia) is found in the city of Plovdiv. The South-West region has the highest concentration of national research infrastructure and is Bulgaria‟s leading region in research and innovation. The capital of Bulgaria is based in the region, which hosts Bulgaria‟s most prominent universities: Sofia University “St. Kliment Ohridski”, the Technical University, the University for National and World Economy, the Medical University – Sofia, the Southwest University "Neofit Rilski" – Blagoevgrad, the American University in Bulgaria – Blagoevgrad, VUZF University of Finance, Business and Entrepreneurship, New Bulgarian University, etc., where over a quarter of all students in the country are enrolled. The region hosts the first Tech Park in Bulgaria (Sofia Tech Park JSC), many industrial associations, technology transfer offices and innovation centers, including the Center for Innovations at the Bulgarian Academy of Sciences, the GIS Transfer Centre; generates 75.5% of all R&D expenditures and has over half of the R&D personnel. Employment in high-tech industries and knowledge-intensive services is higher than the national average and the region ranks first in the share of the population with broadband access. The IT sector dominates among the priority sectors.

Impact of the Socio-Economic Profile of the Regions

South-West Bulgaria, because it hosts the country‟s capital, has become a dominant center for research infrastructure, research capacity and innovation activities. The second highest performing region, as per several socio-economic factors, is North-East Bulgaria, with a concentration in the city of Varna, while South-Central Bulgaria comes next with a concentration in the city of Plovdiv. North-Central Bulgaria (city of Ruse) and South-East Bulgaria (city of Burgas) are next, while Northwest-Bulgaria (city of Pleven) is the lowest performing region in Bulgaria and the European Union, overall.

Table4: Regional Impact of Socio-Economic Factors

Regions Foreign Share of GDP Availability Internet Annual Direct population per of students access Gross Investment with tertiary capita Salary (FDI education NW * *** * * **** *** NC * *** * **** ***** *** NE *** ***** *** ***** ***** *** SW ****** ****** ****** ****** ****** ****** SC ** **** ** ***** **** *** SE ** ** * **** **** *** Source: Ministry of Education and Science (2018). Data used from Regional Economic Profiles of Institute for Market Economics (2017). Note: ****** (highest); * (lowest).

Table 4 shows the foreign direct investments (FDI) are higher in the South-West and the North-East region of Bulgaria while the other regions, especially in the North, are lacking foreign investments. As to the share of population with tertiary education, there is the same tendency. The GDP per capita is very low again in the northern and the southern regions, except for the South-West and North-East regions. The annual gross salary remains highest in the South-West region where the country‟s capital is located. Internet access as a socio- economic factor has the biggest regional impact in all the regions of Bulgaria and that is due to the high quality of broadband Internet connection and the fast-developing distribution of this service. As a result of the socio-economic impact and regional capacity, Table 5 provides information about the best-performing cities to host regional research hubs.

Table5: Best Performing Regions for potential Regional Research and Innovation Hubs

Regions Best District Performers North-Western The economic profile of the poorest region in Bulgaria does provide an indication that the location of research infrastructure has the potential to boost local economic growth. Pleven stands out as a leader in the region with available college and university students, and attracted FDI, although Vratsa has also good economic indicators. The impact of available research infrastructure will be highest, though in Vidin, Lovech and Montana. North-Central V.Tarnovo, Ruse, Gabrovo, Razgrad and Svishtov are good 18

candidates for regional research hubs. The impact of available hub in Razgrad would be the highest. North-Eastern Varna, Dobrich and Shumen are relatively open if we regard their economic profile in hosting research infrastructures with regional impact. Particularly, Dobrich and Shumen could benefit from the impact of available research infrastructures in terms of boosting economic activities given the high unemployment rates in these districts. South-Western Sofia (the capital) does stand out as a center of the country with concentrated economic activities. Regional research centers should not necessarily be developed in the capital of Bulgaria, but there is potential to establish some in Blagoevgrad and Sofia District. South-Central Plovdiv stands out very high in terms of economic development compared to all other districts. Given similarities in the development of all other regions, the impact of having regional research centers in Smolyan, Haskovo and Kardjali will be highest. South-Eastern St. Zagora and Burgas can host a regional research center. Yambol and Sliven have far less developed in terms of their economic profile, and they can potentially host one regional research center. Kazanlak has also the potential to establish a regional research center in the field of mechanics due to the available business interest. Source: Evgeniev, E. (2017).

Conclusion

The present study determined the regional distribution of research and innovation assets as part of mapping a wider national knowledge-based ecosystem for Bulgaria. Building on the policy context and inputs and outputs of the system, key actors were identified at the regional level alongside the impact of the socio-economic profile of the regions in order to identify potential regional research and innovation hubs. Regional disparity was clear in terms of such assets, such that improving collaboration and networks among such assets would be a clear focus for strengthening Bulgaria‟s knowledge ecosystem. It is considered that in order to build regional research and innovation hubs in an emerging national innovation and research system, there is a need to look at two critical national drivers. Firstly, the regional research capacity, and secondly the key socio-economic factors that can impact on building a sustainable regional research system. While the EU offers strong policy support with a range of strategic documents and frameworks in support of regional knowledge-based ecosystems, it is considered that there is more to do to translate these into action. The role of higher education in such networks deserves further attention given their centrality to regional and national knowledge systems. Pursuing smart specialization at a national level brings into sharp relief the current range of research and innovation activities that should perhaps be focused more deliberately by such national strategy. Given the evident differences among regions, existing resources could be drawn together to reflect knowledge hubs and in this way serve to advance Bulgaria‟s ambitious national goals in Europe.

REFERENCES

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Data source:

National Statistical Institute, Official Bulletin of the Bulgarian Patent Office, SciVal. EU 2020 Strategy, https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal- policy-coordination/eu-economic-governance-monitoring-prevention-correction/european- semester/framework/europe-2020-strategy_en EU funds, available at: http://2020.eufunds.bg/bg/5/0/OPProfile

Acknowledgements:

The authors of this paper had a key role in developing the report for the Ministry of Education and Science of Republic of Bulgaria, entitled:Socio-Economic Impact of Universities and Research Institutes in Bulgaria. While Assoc. Prof. EvgeniEvgeniev led the team of the government, which cooperated with experts from the World Bank and OECD between January-June 2018, Prof. Wendy Purcell served as key expert advisor.

Assoc. Prof. Evgeni Evgeniev, PhD Department of Finance, VUZF University 1, Gusla Str. Sofia 1618, Bulgaria E-mail: [email protected]

Prof. Wendy Purcell, PhD FRSA Harvard T. H. Chan School of Public Health Harvard University 401 Park Drive 4th Floor West, Suite 406,PO Box 15677 Boston MA 02115 USA E-mail: [email protected]