Measuring the Innovation Potential of the Bulgarian Economy
Measuring the Innovation Potential of the Bulgarian Economy

Summary/Abstract: Bulgaria has reached a stage of economic development which requires that public policies are increasingly focused on innovation. The economic factors and prerequisites for such a shift are already visible. After the financial and economic crisis of 1996-1997, the Bulgarian economy marked eight consecutive years of economic growth. Fixed capital investment reached 20% of GDP in 2004 for the first time since transition started and continues to increase, credit activity booms and unemployment is steadily decreasing. Despite this revival, according to most economic indicators, Bulgaria still lags significantly behind the average EU-25 level. At present, Bulgaria competes with homogeneous, labor- and material-intensive products and the driving factor behind its competitiveness is low costs. Escaping this low technology trap requires the development of a flexible and open national innovation system within a competitive market economy framework that would ensure: • an influx and wide diffusion of foreign innovation in the country; • gradual development of local innovation capacity of European and global quality. Innovation.bg aims at assisting the efforts of the public and private sector for a successful transition to innovation economy by providing a reliable analysis of the structure, current status and opportunities for development of the Bulgarian innovation system. The report takes into account the specific national economic political and institutional framework in which the Bulgarian innovation system is developing.

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