Innovation strategy for smart specialization 2014-2020 Version 26.10.2015 INNOVATION STRATEGY FOR SMART SPECIALISATION THE REPUBLIC OF BULGARIA 2014-2020 1 Innovation Strategy for Smart Specialisation 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 ......................................................................................................................... 16 1.4. Sectoral specialization in manufacturing and services. ................................................................... 17 1.5 Export / import and trade by sectors ....................................................................................................... 22 1.5 Established and emerging clusters ............................................................................................................ 22 1.7. Regional specialization. ................................................................................................................................ 25 High-tech industries and knowledge-intensive services. .............................................................. 26 Medium-high and medium-low tech industries and market services (financial intermediation not included). .................................................................................................................... 27 Low-Tech industries and less knowledge-intensive market services ..................................... 28 1.8. Quantitative analysis for identifying potential areas for intensive innovation development ................................................................................................................................................. 35 1.8.1. Methodological Approach ................................................................................................................. 35 1.8.2 Results ........................................................................................................................................................ 36 1.9. SWOT analysis of the socio-economic conditions ............................................................................... 36 2. CAPACITY FOR INNOVATION AND RESEARCH PERFORMANCE ................................. 38 2.10. Innovation capacity of the firms ............................................................................................................. 38 2.11. Research performance ............................................................................................................................... 41 2.12. Human capital in research and innovations ...................................................................................... 44 2.13. National funding in technology and innovation ................................................................................ 47 Infrastructure 47 Programmes for scientific research activity support 51 Financing the innovation activity of the enterprises 53 2.14. International research collaboration ................................................................................................... 54 Participation of the business sector (SMEs in particular) in EU programmes 54 2.15. Quality analysis for identification of potential spheres for intensive innovation development ................................................................................................................................................. 56 2.15.1 Methodological Approach: .............................................................................................................. 56 2 Innovation Strategy for Smart Specialisation 2014-2020 2.15.2 Results...................................................................................................................................................... 57 2.16. Cross analysis for identifying potential technological spheres for intensive innovation development (specialization) ......................................................................................... 57 2.16.1 Methodological Approach: .............................................................................................................. 57 2.16.2 Results...................................................................................................................................................... 57 1. Identification of technological field “Mechatronics and Clean Technologies” ....................... 58 2. Identification of technological field “ICT” .............................................................................................. 58 3. Identification of technological field “Biotechnologies” .................................................................... 59 4. Identification of technological field “Nanotechnologies” ................................................................ 59 5. Identification of technological field “Creative Industries”, including cultural industries 59 6. Identification of technological field “Pharmacy” ................................................................................ 60 7. Identification of technological field “Foodstuff Industry” .............................................................. 60 2.17. SWOT analysis of the innovation and scientific research potential .......................................... 61 3. ICT AND ICT POTENTIAL ......................................................................................................... 63 3.18. Review of the existing infrastructure and existing services ........................................................ 63 Broadband infrastructure / access ................................................................................................... 63 e-Government............................................................................................................................................. 63 Education, research and innovation infrastructure .................................................................. 65 3.19. Review of the expansion / development of the infrastructure ................................................... 65 3.20. Expenditures and investments in ICT by enterprises ..................................................................... 66 3.21. Mapping the ICT sector ............................................................................................................................... 68 3.22. Social factors / penetration of ICT and compliance with European Digital Agenda............ 69 Digital literacy 70 Use of the Internet by the population 70 Use of the Internet and ICT by enterprises 70 E-commerce 71 Use of public e-services by citizens and enterprises 71 3.23. SWOT and ICT potential ............................................................................................................................. 71 4. SUMMARIZED SWOT ANALYSIS ............................................................................................. 74 5. INNOVATION STRATEGY FOR SMART SPECIALIZATION 2014-2020 ....................... 77 5.24. Vision ................................................................................................................................................................ 77 5.25. Description of Objectives........................................................................................................................... 78 5.25.1. Wide consultation procedure ....................................................................................................... 78 5.25.2. From technology areas to thematic areas ............................................................................... 80 5.25.3 Objectives and development of Bulgaria .................................................................................. 81 5.26. Description of background of the Thematic areas ........................................................................... 82 5.26.1. Objective 1 – Vertical dimension ..................................................................................................... 82 5.26.1.1. "Mechatronics and clean technologies" ............................................................................... 83 5.26.1.2. "Informatics and information and communication technologies" ........................... 85 5.26.1.3. „Industry for a healthy life and bio-technology" .............................................................. 87 3 Innovation Strategy for Smart Specialisation 2014-2020 5.26.1.4. „New technologies in creative and recreational industries"......................................