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. 8 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 INNOVATION RESEARCH 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