Transcript Evgeni Evgeniev

Remarkable Experience in ICT before the 1990s….
The AtanasoffBerry 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
The first factory
for Computing
Technology in
Bulgaria starts
operation
1980
The first
Bulgarian
Microcomputer
“IMCO 1”
(analogue of
Apple II plus)
1984-1986
“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
2000
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
2011
2002
2006
80% of Bulgarian Software
companies’ revenues already
result from contracts with
European and US partners
2010
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
The first factory
for manufacturing
of drugs is opened
in Sofia
New drug “Nivalin” is developed
from Leucojum aestivum plant for
poliomyelitis treatment (currently
FDA approved - Alzheimer treatment)
A new drug for treatment
of erectile dysfunction is
developed from the plant
Tribulus terrestris.
1956
1981
1933
1954
A specialized factory for
the production of
antibiotics starts to operate
in Razgrad
1964
1977
A new stopsmoking drug
is developed
from the
plant Cytisus
laburnum
Phytochemistry
Center created
in BAS - studying
bioactives in
plants
Intensive studies of
bioactives: Center of
Phytochemistry in
BAS, Pharma Faculty,
Faculty of Chemistry
2003-2012
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
D R . E V G E N I E V G E N I E V, A S S O C . P R O F. , V U Z F U N I V E R S I T Y
P R I VAT E S E C T O R D E V E L O P M E N T S P E C I A L I S T , T H E W O R L D B A N K
JUNE 12, 2012
BULGARIA’s
 Competitiveness position
 Innovation System
 Pharma and IT Industries
 New Impetus for R&D Growth: The Sofia
Tech Park
5
Bulgaria’s Competitiveness Position
6
Comparing Bulgaria
Source: World Bank (2012). Going for Smart Growth: Making Research and
Innovation Work for Bulgaria. Washington DC.
7
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.
8
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).
9
FDI goes East, surpassing South East Europe
100
80
percent
65.8
60
76.4
77.0
76.4
EU15 North
EU15 Continental
EFTA
71.7
Emerging Europe
BGR+ROM
40
20
0.5
0.7
22.4
0
1985
(16.9B)
SEE
10.9
11.3
0.4
0.8
10.6
9.4
2.0
2.8
9.4
4.2
5.7
11.4
1.7
3.9
13.4
11.2
1995
(138.3B)
2005
(529.2B)
2008
(563.2B)
2010
(335.9B)
Source: World Bank (2012). Golden Growth: Restoring the Lustre of the European
Economic Model. Washington DC.
10
EU15 South
Impact of the Global Financial Crisis
Economic downturn
fiscal consolidation
fall in R&D
GDP growth (annual %)
8
6
4
2
0
-2
-4
-6
-8
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Bulgaria
Source: WDI Indicators.
Europe & Central Asia
European Union
FDI for Bulgaria (% of GDP)
35.00%
29.4%
30.00%
25.00%
23.5%
19.0%
20.00%
15.00%
13.8%
14.4%
10.5%
10.00%
6.9%
4.5%
5.00%
0.0%
0.00%
2003
2004
2005
2006
2007
2008
2009
2010
Q2 2011
Source: Bulgarian National Bank.
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
12
Bulgaria’s Innovation System
13
Dynamic Profile of Bulgaria’s Exports
(2001-2008 г.)
Source: World Bank (2012). How To Make Research Innovation Work for
Bulgaria. Washington DC.
14
IT is the Engine of Growth for New Bulgarian Patents
120
100
80
60
40
20
0
1981-1990
1991-2000
2001-2010
Chemical
Drugs & Medical
Electrical & Electronic
Mechanical
Source: World Bank (2012). How To Make Research Innovation Work for
Bulgaria. Washington DC.
15
Private Innovation has Increased, but still Not Enough
Performance of Bulgarian firms on R&D
and Innovation 2005-2007 (in %)
 Bulgaria’s R&D spending is
60
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 noninnovative firms
50
55
Percentage of firms
40
40
28
30
20
10
0
Upgraded an
existing product or
service
Introduced a new
product
Source: BEEPS, 2008.
Invested in R&D
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.
17
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.
18
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.
19
Pharma Industry
20
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
21
ICT Industry
22
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
23
Sofia Tech Park … New Flagship Initiative of the Smart
Specialization Strategy
24
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
Sofia
Tech
 Large expansion potential
 Available top researchers
 Growing Interest from
Global Companies
25
Sofia Tech Park Ecosystem
1. Education
2. Funding resources
 Existing educational programs
 Prospective new cooperation programs
 Prospective partnerships
4. Science


Research teams / projects
Individual researchers
5. Tenants




Multinationals
Local (mature) companies
Start-ups
Projects
Sofia
Tech Park

Equity funds: Jeremie (public and
private funding)

InnovateBG (public innovation
fund)

Other private sources (business
angels, risk funds, etc.)
3. Mentors & support
network




Incubation services for star-ups
Clusters
Competitions
Global partnerships
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.
p. 26
Thank you!
27