1. Investment into smart growth! How we can help!

2. “…the EU and its Member States should adopt a strategic and integrated approach to innovation whereby all relevant supply and demand policies and instruments are designed to contribute to innovation,… Such an approach should optimise synergies between and within different EU and national/regional policies and ensure greater involvement of all stakeholders in the innovation process ” European Council Conclusions, 19 November 2010 Europe 2020

3. Context: CP need for change 1.Cohesion policy is one of the key delivery mechanisms of Europe 2020. Accordingly its focus needs to be on knowledge-based investments and to sustain efficient national/regional innovation systems. 2.Crisis: more efficient spending necessary, more concentration on competitiveness factors and building competitive advantage in global value chains, growth-enhancing investments not only budget cuts.

4. Future CP – key components 1)Alignment of CP with Europe 2020 2)Reinforced strategic programming/focus 3)Thematic concentration 4)Reinforcing performance 5)Stronger focus on results 6)Simplified delivery system “ “To increase the effectiveness of cohesion spending, funding in future will be targeted on a limited number of objectives…. New conditionality provisions will be introduced to ensure that EU funding is focussed on results and creates strong incentives for Member States to ensure the effective delivery of Europe 2020 objectives and targets…“ The new conditionality “smart specialisation” is directly linked to 5 of the 6 main components Smart specialisation

5. Thematic concentration/Earmarking 11 investment priorities: MS/regions to concentrate EU and national resources on limited number of thematic objectives linked to Europe 2020 to improve EU added value and impact 80% of SF investments for (1) research and innovation, (3) SME support and (4) energy efficiency and renewables – for more developed regions, 50% for less developed regions

6. Smart specialisation - What? 1.An integrated innovation strategy should be presented for our assessment as precondition for our funding  It is an ex-ante conditionality for effective use of EU funds, which should be fulfilled by the time an Operational Programme is approved

7. Productivity

8. Main drivers of competitiveness and productivity in Bulgaria 1.Increase of exports and value added of production  Key factor is public and private sectors capacity to innovate 2.Energy (in) efficiency 3.Modern educational and training systems

9. Competitiveness of BG GovernanceHREconomy Business environment & Red tape Rule of law Universities Vocational Schools R&D Productive sector Innovation & technology development Financial instruments

10. Way ahead Based on studies and analyses choice of strategic priorities and key sectors to be developed (strategic focus) –Industrial sectors –Research sectors International country peer review –Innovation and technology development sectors Smart specialisation/clusters

11. Way ahead Develop integrated Innovation Strategy –Integrated policies to develop competitiveness and create additional synergies (red box in my slide) –Productive sector, education (modernisation of vocational and university education), RTD –ESF and ERDF –What infrastructure investments (modernisation) are needed? Well targeted actions to acieve objectives –investment plan, Major projects pipeline preparation –What instruments are needed? –Grants, financial engineering tools

12. Way ahead Develop integrated Innovation Strategy –How to improve institutional and administrative capacity and efficiency –Improvement of efficiency of systems and institutions Running costs in R&D are high –Sustainable long term financing should be ensured for key sectors selected NSF and NIF Financial engineering (JEREMIE type) tools –To match better state and private sector needs creation of National Council of “Science and Innovations “ makes sense

13. Way ahead Develop integrated Innovation Strategy –Use your good network of Bulgarian top scientists and managers all around the world –Change agents should be defined for research and for innovation But strong constructive coordination and cooperation is needed

14. Way ahead ERDF and ESF “menu” what we can finance is pretty long list of actions and activities –Grants and financial engineering tools –Infrastructure –Modernisation of facilities and equipment –Technology parks, specialised business parts and incubators –Innovation and knowledge vouchers –Product development and commercialisation –Applied research

15. Our recommendation If you need our money, prepare good and integrated Innovation Strategy –Use this study as a good start to prepare it –Make your smart strategic choices Use best practice and expertise around –Use your knowledge of top Bulgarians scientists and managers around the world –Other member states –WB Sign in into Smart Specialisation Platform what is designed to help you

16. Our recommendation If you need our money, prepare good integrated Innovation Strategy –Use DG Regio RIS 3 guide to prepare strategy paper and action plan Several not easy political and many managerial decisions should be made

17. Our recommendation If you need our money, prepare good and integrated Innovation Strategy –Use DG Regio RIS 3 guide to prepare strategy paper and action plan Several not easy political and many managerial decisions should be made

18. I wish you right strategic choices and encouragement to make right political and managerial decisions to increase Bulgarian RTD imapct in EU and in entire world