1. 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
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.

2. 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.

3. 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
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

4. 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

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

6. Bulgaria’s Competitiveness Position

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

8. 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.

9. 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).

10. 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

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

12. 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

13. Bulgaria’s Innovation System

14. 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.

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

16. 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 (in %)
Source: BEEPS, 2008.

17. 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.

18. 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.

19. 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.

20. Pharma Industry

21. 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

22. ICT Industry

23. 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

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

25. 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

26. 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.

27. Thank you!