Institution Building on Investment in High-technology Business Incubators

Institution Building on Investment in High-technology Business Incubators, Provision of Technical Assistance for the launching and monitoring of R&D grant scheme (BG 0102. 01) 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 2003 • 173 Applications received • 49 Applications approved for funding

Funding Grant Scheme Total budget: Euro 3. 112. 529 Sources of funding • Grant beneficiaries: • EU funding: • National funding: Euro 1. 522. 976 Euro 1. 142. 232 Euro 380. 744

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 2001 - 2003, • 82% launched new or significantly improved products in the period 2001 - 2003, • 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 2004 - 2007: • • • 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 2002 -06

6 th 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 • www. cordis. lu/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 - 75 - The "Success rate" - 9. 23% (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 – 258 - 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" - 21. 74% (Global success rate 32. 6%) (Success rate ACC 27. 7%)

Participation of Bulgarian entities in the 5 th Framework Programme • FP 5: 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 FP 6 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 : +3592 -9816600, Fax : +3592 -9861899 Email : g. doynova@asme. bg Mr. Georgi Chobanov Sofia University St. Kl. Ohridski – Fac. Economics & Business Administration Phone : +3592 -738310, Fax : +3592 -739941 Email : decan@feb. uni-sofia. bg Ms. Zoya Damianova Innovation Relay Center - Applied Research and Communications Fund Phone : +3592 -9733000 / +359 -88340032, Fax : +3592 -9733588 Email : zoya. damianova@online. bg

Whom to contact? Programme Implementing Agencies • Ministry of Regional Development & Public Works www. mrrb. government. bg • Ministry of Economy www. mi. government. bg • Ministry of Transport and Communications www. mtc. government. bg • Ministry of Labour and Social Policy, www. mlsp. government. bg

Whom to contact? • European Commission www. cordis. lu/innovation-smes/ www. europa. eu. int/comm/europeaid/ EC Delegation to Bulgaria www. evropa. bg