Innovation strategy for smart specialization 2014-2020 Version 27.06.2017 INNOVATION STRATEGY FOR SMART SPECIALISATION OF THE REPUBLIC OF BULGARIA 2014-2020 1 Innovation strategy for smart specialization 2014-2020 TABLE OF CONTENTS SUMMARY ...................................................................................................................................... 5 INTRODUCTION ......................................................................................................................... 11 The European Context........................................................................................................................................................ 11 National context..................................................................................................................................................................... 11 1. SOCIO-ECONOMIC ANALYSIS ............................................................................................ 13 1.1 General macroeconomic overview ...................................................................................................... 13 1.2. Business support policy ........................................................................................................................ 14 1.3. Foreign Direct Investments .................................................................................................................. 15 1.4. Sectoral specialization in manufacturing and services. ............................................................... 17 1.5 Export / import and trade by sectors ................................................................................................. 22 • High-tech industries and knowledge-intensive services. .............................................. 27 • Medium-high and medium-low tech industries and market services (financial intermediation not included). ............................................................................................... 28 • Low-Tech industries and less knowledge-intensive market services .................... 28 1.8. Quantitative analysis for identifying potential areas for intensive innovation development35 2. CAPACITY FOR INNOVATION AND RESEARCH PERFORMANCE ................................ 37 2.1. Innovation capacity of the firms ........................................................................................................ 37 2.2. Research performance ........................................................................................................................... 40 2.3. Human capital in the scientific research and innovations ........................................................... 44 2.4.National investments in research, technology and innovations ................................................ 47 • Research Infrastructures .................................................................................................................. 48 • Programs for rendering assistance to the research activity ......................................... 52 • Financing the innovation activity of the enterprises ......................................................... 55 2.5.National investments in technologies and innovations ................................................................ 55 2.6. Qualitative analysis for identification of potential spheres for intensive innovation development ......................................................................................................................................... 58 2.6.1 Methodological Approach: ........................................................................................................................ 58 2.6.2 Results .................................................................................................................................................................. 58 2.7. Cross analysis for identifying potential technological spheres for intensive innovation development (specialization) .......................................................................................................... 58 2.7.1 Methodological Approach: ........................................................................................................................ 58 2.7.2 Results .................................................................................................................................................................. 59 • Identification of technological field “Mechatronics and Clean Technologies” ...................... 59 • Identification of technological field “ICT” .................................................................................................... 60 • Identification of technological field “Biotechnologies” .......................................................................... 60 • Identification of technological field “Nanotechnologies” .................................................................. 60 2 Innovation strategy for smart specialization 2014-2020 • Identification of technological field “Creative Industries”, incl. cultural industries .......... 61 • Identification of technological field “Pharmacy” .................................................................................. 61 • Identification of technological field “Foodstuff Industry” ................................................................. 61 2.8. SWOT analysis of the innovation and scientific research potential .......................................... 62 3. ICT AND ICT POTENTIAL ..................................................................................................... 63 3.1. Review of the existing infrastructure and existing services........................................................ 63 • Broadband infrastructure / access .................................................................................................. 63 • e-Government .............................................................................................................................................. 63 • Education, research and innovation e-infrastructure ........................................................... 64 • ICT clusters ................................................................................................................................................... 64 3.2. Review of the expansion / development of the infrastructure .................................................. 65 3.3. Expenditures and investments in ICT by enterprises ................................................................... 65 3.4. Mapping the ICT sector .......................................................................................................................... 66 3.5. Social factors / penetration of ICT and compliance with European Digital Agenda ............. 67 3.6. SWOT and ICT potential ......................................................................................................................... 71 4. SUMMARIZED SWOT ANALYSIS......................................................................................... 73 5. INNOVATION STRATEGY FOR SMART SPECIALIZATION 2014-2020 ...................... 76 5.1. Vision .......................................................................................................................................................... 76 5.2. Description of Objectives ...................................................................................................................... 78 5.2.1. Wide consultation procedure ............................................................................................................... 78 5.2.2. From technology areas to thematic areas ....................................................................................... 79 5.2.3 Objectives and development of Bulgaria .......................................................................................... 81 5.3. Description of the thematic areas and basic activities.................................................................. 82 5.3.1. Description of the thematic areas ................................................................................................................... 82 5.3.1.1. Thematic area "Informatics and information and communication technologies" ........................................................................................................................................................................... 83 5.3.1.2. Thematic area „Mechatronics and clean technologies" ....................................................... 85 5.3.1.3. Thematic area „Industry for a healthy life and bio-technology" .................................... 87 5.3.1.4.Thematic area „New technologies in creative and recreational industries" ........... 91 5.3.2. Basic activities under Objective 1 ................................................................................................................... 92 5.3.2.1. Activities resulting in efficient cooperation science-business ........................................ 93 5.3.2.2. Activities resulting in improvement of human resource.................................................... 95 5.3.2.3. Activities leading to an adequate environment and infrastructure including e- governance ................................................................................................................................................. 98 5.3.3. Basic activities under Objective 2 ...............................................................................................................