ARC FUND Presentaion

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Enhancing Bulgarias Competitiveness through
Innovation TA
Experience and Lessons of Utilizing National and
EU Funds for Innovation in Bulgaria
Ruslan Stefanov Coordinator Innovation.bg Group
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Outline

• Strategic underpinning
• Available instruments
• Performance assessment strengths vs. weaknesses
• National Science Fund (NSF)
• National Innovation Fund (NIF)
• OP Competitiveness (OPC)
• Conclusions and recommendations

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Strategic framework

• European dimension Europe 2020 gt draft national
  goal RD expenditures 1.4 2 of GDP
• Draft National RD Strategy and National
  Innovation Strategy gt targets not met update
  needed for 2020
• Legal framework Law on Encouragement of
  Scientific Research gt outdated and patchy
• Financial underpinning gt annual national
  planning vs. 7 year EU / roughly EU BG sources
  parity

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Position of the National Science Fund and
National Innovation Fund Along the Science to
Market Axis
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Annual Financial Weight of National Instruments
in Million
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NSF Top Three Strengths and Weaknesses
Strengths Weaknesses
Established institution with a solid history and strong support base. One time international evaluation of activities. No mid and long-term budget planning. Multiple priorities. No regular evaluation of programatic impact.
Active leverage of European Framework Programs for Research - introduction of specialized mechanisms to support scientists in their preparation and implementation of such projects Reviewers prepare stereotyped and unspecific project reviews, which do not provide clear argumentation and assessment of the qualities of the project and do not help the avoidance of weaknesses.
Support for strengthening universities as research centers, as binding organizations of the main elements of the knowledge triangle education, research and innovation The criteria for objectivity and avoidance of conflict of interests are not properly observed (members of the commissions to the NSF are involved in the implementation of some projects)
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NIF Top Three Strengths and Weaknesses
Strengths Weaknesses
381 projects from different sectors of the economy, both high-tech and traditional, have been financed for the first time through a national public instrument. The fund is not institutionalized but represents a funding scheme, which creates unceratinty. Lack of procedure for determining the priorities of the Fund as well as one for reporting these priorities during project evaluation.
The Fund developed the capacity of the Bulgarian enterprises to write and implement projects. The management of NIFs financial resources is on annual basis, while some contracts have 3-year duration.
The legal framework for the management and operation of the Fund has been created and NIF has been certified by the relevant national and European bodies. After 2008, NIF has been operating only in respect to the contracts which have been signed in previous years.
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Innovation not a priority in 2007 - 2013
of total amount allocated for both Convergence
and Competitiveness objectives, compared to the
total Community allocations in all themes
Source Strategic Report of Republic of Bulgaria
for 2009, Annex 3 Financial Progress by Priority
Themes
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Low Absorption Identified Problems and
Implemented Measures
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Capacity of absorption of EU funds

• State administration and managing authorities
  Complicated and prolonged the rules and
  proceduresGradually build up their capacity and
  information systemsCurrently trying to improve
  the procedures
• Beneficiaries Capacity of beneficiaries varies.
  Lesser experience of Bulgarian firms not
  eligible under the pre-accession instruments.
• Consultants Developed consultancy market
  (Bulgarian and foreign firms) Different levels
  of professional expertise. Some problems with
  quality.

Capacity to absorb EU funds
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Conclusions Recommendations

• Most serious issue lack of strategic
  coordination and policy underpinning
• Problems with absorption similar to all national
  instruments, incl. operational programs
• No stable national RD financial framework
• Performance can be improved by leveraging
  national instruments and EU framework programs