Remarkable Experience in ICT before the 1990s…. The Atanasoff-Berry Computer (ABC) is the world’s first electronic digital computer A court ruling in a patent dispute found that the patent for the 1946 ENIAC computer was derived from the Atanasoff-Berry Computer “Pravec 16”, initially made under the name IMKO-4, was an analogue of IBM PC/XT. Bulgaria started producing 60,000 computers per year, thus becoming the number one producer and exporter for USSR and CMEA 1937 1973 1984 1967 1980 1984-1986 The first factory for Computing Technology in Bulgaria starts operation The first Bulgarian Microcomputer “IMCO 1” (analogue of Apple II plus) “Pravec 8M” was produced, very modern for its time with more memory and 2 microprocessors. Apple did not have such analogue. The military version introduced QWERTY keyboard for the first time Source: Presentation by Julieta Hubenova, former Deputy Minister, Ministry of Economy, Energy and Tourism, at World Bank organized event in Prague, Czech Rep., 20 May, 2012.

Due to Global Companies the Bulgarian IT Industry Grew Substantially after 2000 SAP entered Bulgaria through purchasing part of ProSyst company The Global IT IQ Report by Brainbench Inc . ranks Bulgaria 8th within the Top 10 countries, based on the number of certified IT professionals. Bulgaria has 8,844 certified IT professionals Three Bulgarian companies are included in Deloitte’s ranking of the Top 50 fastest growing technology companies in Central Europe 2000 2011 2002 2006 2010 80% of Bulgarian Software companies’ revenues already result from contracts with European and US partners HP chose to establish its new R&D center in Bulgaria which competed with 30 other countries. The company will open 2,000 jobs Source: Presentation by Julieta Hubenova, former Deputy Minister, Ministry of Economy, Energy and Tourism, at World Bank organized event in Prague, Czech Rep., 20 May, 2012.

Bulgaria has long-term experience and traditions in Pharmacy Intensive studies of bioactives: Center of Phytochemistry in BAS, Pharma Faculty, Faculty of Chemistry The first factory for manufacturing of drugs is opened in Sofia A new drug for treatment of erectile dysfunction is developed from the plant Tribulus terrestris. New drug “Nivalin” is developed from Leucojum aestivum plant for poliomyelitis treatment (currently FDA approved - Alzheimer treatment) 1933 1956 1981 1954 1964 1977 2003-2012 A specialized factory for the production of antibiotics starts to operate in Razgrad A new stop-smoking drug is developed from the plant Cytisus laburnum Phytochemistry Center created in BAS - studying bioactives in plants Bulgarian pharmaceutical companies modernize their factories to match European standards for drug manufacturing – Sopharma, Actavis, Biovet are all big exporters

Bulgaria’s Innovation System and the Sofia Tech Park Dr. Evgeni Evgeniev, Assoc. Prof., VUZF University Private Sector development specialist, The World Bank June 12, 2012

BULGARIA’s Competitiveness position Innovation System Pharma and IT Industries New Impetus for R&D Growth: The Sofia Tech Park

Bulgaria’s Competitiveness Position

Comparing Bulgaria Source: World Bank (2012). Going for Smart Growth: Making Research and Innovation Work for Bulgaria. Washington DC.

Labor Productivity in 2002: Bulgaria is at the Bottom Source: World Bank (2012). Golden Growth: Restoring the Lustre of the European Economic Model. Washington DC. Staff calculations, based on Eurostat data. Note: Belgium, Greece and Norway data for 2003.

Yet Bulgaria has highest Labor Productivity Growth between 2002 and 2008 Source: World Bank (2012). Golden Growth: Restoring the Lustre of the European Economic Model. Washington DC. Staff calculations as per Eurostat data. Note: Belgium and Norway (2003–08), Greece (2003–07), and Czech R., France, Latvia, Romania and UK (2002–2007).

FDI goes East, surpassing South East Europe Source: World Bank (2012). Golden Growth: Restoring the Lustre of the European Economic Model. Washington DC. Note: The numbers in parentheses are the amount of inflows expressed in billions of U.S. dollars. Source: World Bank staff calculations, based on UNCTAD (2011); see Chapter 4. NS (BGR ROM) REV

Impact of the Global Financial Crisis Economic downturn fiscal consolidation fall in R&D Source: WDI Indicators.

FDI for Bulgaria (% of GDP) Source: Bulgarian National Bank. NS (BGR ROM) REV Past growth was built on the back of strong FDI and credit growth Innovation has not been the main driver of economic growth in Bulgaria

Bulgaria’s Innovation System

Dynamic Profile of Bulgaria’s Exports (2001-2008 г.) Exports represented nearly 58% of GDP (2010) Only 3% of exports are high-technology exports vs. the EU 27 average of 16% Past performance may not be a good predictor of the future Source: World Bank (2012). How To Make Research Innovation Work for Bulgaria. Washington DC.

IT is the Engine of Growth for New Bulgarian Patents Source: World Bank (2012). How To Make Research Innovation Work for Bulgaria. Washington DC.

Private Innovation has Increased, but still Not Enough Bulgaria’s R&D spending is 0.60% of GDP (vs. 2% in the EU-27) The ratio of private to public R&D is 50:50 Innovative firms in Bulgaria grow 1.5 times faster and create more jobs than non-innovative firms Performance of Bulgarian firms on R&D and Innovation 2005-2007 (in %) Source: BEEPS, 2008.

R&D Funding Forecast for Bulgaria (2000-2020) Source: Competitiveness report for the Innovation Council 2011. DG Science and Innovation staff estimates, based on EUROSTAT.

Positive Trend for the Number of Publications Positive Trend for the Number of Publications. Yet, not as Good as Competitors. Source: World Bank (2012). How To Make Research Innovation Work for Bulgaria. Washington DC.

Research is Concentrated in Sofia Research Institutes and Universities PUBLICATIONS IN BULGARIA Source: World Bank (2012). How To Make Research Innovation Work for Bulgaria. Washington DC.

Pharma Industry

Pharma Industry as a Potential Engine for R&D Growth Standing 20 –25,000 quality jobs Produces mainly generics Five times increase of Exports Spends about 5% on R&D Challenges Administrative barriers Low R&D Investment Limited investment support via EU funds and national instruments

ICT Industry

ICT Industry as Potential Engine for R&D Growth Standing 15,000 high quality specialists 2% of GDP Attracted Global IT Firms Increasing R&D intensity Challenges High Demand for Qualified specialists Regulatory Burden Limited investment support via EU funds and national instruments

Sofia Tech Park … New Flagship Initiative of the Smart Specialization Strategy

SOFIA TECH PARK 50 m. EUR project to begin in 2012 Located close to downtown Sofia Close to top universities, research institutes and student campuses High-quality infrastructure Large expansion potential Available top researchers Growing Interest from Global Companies Sofia Tech

Sofia Tech Park Ecosystem 1. Education 2. Funding resources Existing educational programs Prospective new cooperation programs Prospective partnerships Equity funds: Jeremie (public and private funding) InnovateBG (public innovation fund) Other private sources (business angels, risk funds, etc.) Sofia Tech Park 4. Science Research teams / projects Individual researchers 3. Mentors & support network 5. Tenants Incubation services for star-ups Clusters Competitions Global partnerships Multinationals Local (mature) companies Start-ups Projects Source: Presentation by Julieta Hubenova, former Deputy Minister, Ministry of Economy, Energy and Tourism, at World Bank organized event in Prague, Czech Rep., 20 May, 2012.

Thank you!