Institution Building on Investment in High-technology Business Incubators, Provision of Technical Assistance for the launching and monitoring of R&D grant scheme (BG ) NATIONAL INNOVATION FORUM Sofia 22 October 2004

Contents Presentation Introduction Grant Scheme Funding Grant Scheme Grant Beneficiaries Results of the Grant Scheme Impact of the Grant Scheme on the beneficiaries

Introduction Grant Scheme Objective: Enhancement of the innovation in SMEs in Bulgaria Ministries involved: Ministry of Regional Development and Public Works, Ministry of Economy Launch of the Grant Scheme: September Applications received 49 Applications approved for funding

Funding Grant Scheme Total budget: Euro Sources of funding Grant beneficiaries: Euro EU funding: Euro National funding:Euro

Grant beneficiaries (I) By size: 27% employed up to 10 employees, 42% 10 – 50 employees, 12% 51 – 100 employees and 18% more than 100 employees Number of female employees amounted to 40%.

Grant Beneficiaries (II) By sector:

Grant Beneficiaries (III)

Grant Beneficiaries (IV) Re. R&D activities, Grant Beneficiaries: 79% had R&D projects in the period , 82% launched new or significantly improved products in the period , 64% indicated that they regularly implement R&D, Spent on average more than 10% of net sales revenue on R%D.

Grant Beneficiaries (V) Budget of the Grant beneficiaries consisted of: Equipment – 58% Human Resources – 26% Other services – 26%

Results of the Grant Scheme (I) 25% of the Grant beneficiaries indicated formal partnerships with Universities and other institutes and organisations. Number of formal AND informal partnerships is closer to 50%.

Results of the Grant Scheme (II) Of all Grant beneficiaries: 85% indicated that the public financial support did make a difference. 15% would not have carried out at all the R&D, 45% would have carried out the R%D but in a later stage, and 24% would have carried out the R&D but not in such an efficient way.

Results of the Grant Scheme (III) Commercialisation: 66% of Grant Beneficiaries indicate that they anticipate revenues latest one year after project end. 82% commercialise primarily through in-house production 12% commercialise primarily through licensing 6% commercialise primarily through joint production alliances 6% commercialise primarily through alliances with distributors.

Expected Impact of the Grant Scheme Grant Beneficiaries indicated that they expect: To create around 10 new jobs for each company in the three years after the end of the project Increase of sales 30 million BGL per year Increase of exports 4,5 BGL per year 45% expect a high impact on the improved prevention of emissions and preservation of environment.

Priorities of EU financing - PHARE Regional and social development Industrial restructuring Development of small business sector Institution building Focus Areas Bulgaria : Administrative Capacity Judiciary Anti-corruption Economic development Social inclusion

EU-funded projects supporting the private sector in Bulgaria Infrastructure (Transport, Energy, Telecommunication, Information Society ) Economic Policy/Administration, Judiciary Regulation and Standardization Public Procurement Professional Education Financial Sector (Banking, Insurance) Company Support

PHARE Company Support > € 30 Million Ministries of Regional Development, Economy, Labour & Social Policy: Vocational Training Business Incubators Hi-tech Business Incubators, R&D Conversion of former military bases SME Technology Grant Scheme Cultural Tourism Grant Scheme Ecological Tourism Grant Scheme Sector Clusters (pilot project)

EU Multi-Country Programmes Approximation of Legislation (TAIEX) Strengthening of Business Support Organisations in implementing sector related acquis communautaire ( BSP ) Business Advisory Service (BAS) Turn-around Management (TAM) Euro Info Centres (8 in Bulgaria) 6 th FW Programme RTD

6th Framework Programme for Research & Technological Development Objective: Knowledge-based Economy in European Research Area Reinforcement of the Associated Candidate Country's Research Capacities (improve research capacities) – 20 MEURO - deadline 19 October 2004 – DG Research have received around 370 proposals - from all three ACC (Bulgaria, Romania and Turkey) from which 95 from Bulgaria. CBC of SMEs, industry, research centres, universities, national funds; > 3 SME, 2 C. CC participation in networks of excellence Purpose: Boost technological capacity in traditional & new areas Max. M€ 2/1 per firm; project, Ø M€ 1,2/0,6 Budget 02-06: M€ 16,270; min. 15% SME / Nat’l Contact Point

Participation of Bulgarian entities in Horizontal research activities involving SMEs - Total number of Bulgarian entities participations in submitted project proposals – 959 -Total number of Bulgarian entities participations in evaluated project proposals – 459 -Total number of Bulgarian entities participations in proposals retained for funding The "Success rate" % (Global success rate 18.1%) (Success rate ACC 17%)

Participation of Bulgarian entities in: - Research and innovation - Total number of Bulgarian entities participations in submitted project proposals – Total number of Bulgarian entities participations in evaluated project proposals – 258 -Total number of Bulgarian entities participations in proposals retained for funding – 43 -The "Success rate" % (Global success rate 32.6%) (Success rate ACC 27.7%)

Participation of Bulgarian entities in the 5 th Framework Programme FP5: 12 projects with Bulgarian partners. The majority of them had partners under the heading of "Education". No success stories have been selected for Co-operative research with Bulgarian partners

Participation of Bulgarian partners in the 6 th FP: Cooperative Research (10 main listed projects) Filled polypropylene sheet for automotive applications Development of a low-temperature processing method for the production of natural long-fibre Development of an integrated solar system for buildings Development of New and Novel Automated Inspection Technology for GRP Wind Turbine Blades Intelligent System for Optimizing the On-line Finish Process for stone slabs and wood panels Mass production of silver halide recording material for full colour Interoperable Collaborative Process Management holographic Product Information Management in international export E-business of European Quality Assurance and Structural Evaluation of GRP Pipes The Development of a Novel Laser-Inkjet Hybrid Printing Technology for Additive

Participation of Bulgarian entities in the 6 th Framework Programme: Collective Research First Call: 1 project in Collective research from the first call. Sustainable Heat and Energy Research for Heat Pumps Applications Second call has only just closed so NO information as this stage. Although the Bulgarian partners in FP6 so far include RTD performers EC foresee participation from Bulgarian SMEs also.

SME network of National Contact Points BULGARIA Ms. Galina Doynova Agency for Small and Medium Enterprises Phone : , Fax : Mr. Georgi Chobanov Sofia University St. Kl. Ohridski – Fac. Economics & Business Administration Phone : , Fax : Ms. Zoya Damianova Innovation Relay Center - Applied Research and Communications Fund Phone : / , Fax :

Whom to contact? Programme Implementing Agencies Ministry of Regional Development & Public Works Ministry of Economy Ministry of Transport and Communications Ministry of Labour and Social Policy,

Whom to contact? European Commission EC Delegation to Bulgaria