The two main institutions responsible for EU and national funding in the area of R&D&I as already explained are the Ministry of Education and Science (targeting the public segment of the system) and the Ministry of Economy (in view of the private segment)109. The system in Bulgaria includes Managing Authorities, but also a Central Coordination Unit for all ESIF resources, situated within the Council of Ministers Administration. In the MoE two directorates under different deputy ministers manage the funding (DG “European Funds for Competitiveness”) and coordinate policy (Directorate “Economic Policies for Promotion”). BSMEPA used to be an Intermediate Body for OP Competitiveness until the May 2012 reform, but the functions are now performed by the Managing Authority. BSMEPA still manages the budget resources within the NIF framework. The EFC General Directorate “European Funds for Competitiveness” (former Phare Implementing Agency) is part of the specialized administration of the Ministry of Economy, acting as Managing Authority of Operational Programme Competitiveness 2007-2013 and OPIC 2014-2020 (and recently OP SME Initiative 2014-2020) and comprises six departments:
Legislation, Internal Control and Irregularities Department
Coordination, Publicity and Technical Assistance Department
Programming, Monitoring and Evaluation of the Operational Programme Department
Grant Support and Contracting Department
Monitoring and Financial Management Department (with regional units)
Legality of procedures and Procedural Representation.
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Figure 17 Ministry of Economy as programme and project funder
Source: Authors’ Own Data
Similarly, the Ministry of Education and Science also contains a dual division of competences. The general directorate “Structural Funds and International Educational Programmes” (former Intermediate Body under OP HRD 2007-2013) manages OP SEIG 2014-2020, while Directorate “Science” remains the key policy-making body in the area of science, research and innovation, as well as national coordinator with respect to FPs/Horizon 2020.
Figure 18 Ministry of Education and Science as programme and project funder
Source: Authors’ Own Data Minister of Economy (Head of MA)
Deputy Minister
General Directorate EFC
OPC 2007-2013 OPIC 2014-2020 OP SME Initiative 2014-2020 Deputy Minister Directorate EPP RIS3 Policy BSMEPA NIF
Minister of Education and Science
Deputy Minister
General Directorate EFIEP
OP SEIG 2014-2020 Deputy Minister Directorate Science R&D&I Policy H2020 (new proposal) Public Agency for
Research and Innovation (PARI)
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3.3.2 Funding sources and funding flows
The funding sources for research and innovation in Bulgaria are national (the state budget) and external (EU and other donor programmes). In additional to the institutional financing, the financing from the budget is distributed on a project basis through the Scientific Research Fund and the National Innovation Fund.
Figure 19 National and EU funding sources
Funding sources
Source: Authors’ Own Data
The predominant share of the funding comes from EU funding sources – operational programmes (and framework programmes). During the 2007-2013 programming period the main funding source110 is the OP “Development of Competitiveness of the Bulgarian Economy”, Priority Axis 1 "Development of a Knowledge-based Economy and Innovation Activities" with planned budget of approximately €250 million budget and the following procedures and schemes111:
BG161PO003-1.1.01 Support for the creation and development of innovative start-up enterprises
BG161PO003-1.1.02 Support for the introduction of innovative products, processes and services
BG161PO003-1.1.03 Development of innovative start-up enterprises by supporting the introduction of innovative products, processes and services
BG161PO003-1.1.04 Support for the introduction of innovative products, processes and services
BG161PO003 -1.1.05 Development of innovations by start-up enterprises
BG161PO003-1.1.06 Support for R&D activities in Bulgarian enterprises
BG161PO003-1.1.07 Introduction of innovations in enterprises
BG161PO003-1.2.02 Creation of new and development of existing Technology Transfer Offices
BG161PO003-1.2.03 Creation of new and development of existing Technological Centres
BG161PO003-1.2.04 Development of the applied studies in the research organisations in Bulgaria
BG161PO003-1.2.05 Creation of a Science and Technology Park.
110 in addition to OP “Human Resources Development”
111 Further details, including background data, can be found on: http://www.opcompetitiveness.bg/.
Council of Ministers MES MoE OP SEIG (EU) SRF (national) OPC OPIC (EU) NIF (national)
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For the 2014-2020 programming period ESIF contribute directly to jobs and growth112. Thus, ESIF in the area of research and innovation are present in Bulgaria with two operational programmes and their priority axes 1 (OP “Innovation and Competitiveness”, Priority Axis 1 “Technological Development and Innovation” and OP “Science and Education for Intelligent Growth”, Priority Axis 1 “Research and Technological Development”), guided by the ex ante conditionality for smart specialization. The funding is distributed (in %) among the following categories in intervention:
Table 20: Categories of Intervention as % of R&D&I 2014-2020
Categories of Intervention BG EU28
002. Research and innovation processes in large enterprises 0.0 6.5
056. Investment in infrastructure, capacities and equipment in SMEs directly
linked to research and innovation activities 21.2 10.7
057. Investment in infrastructure, capacities and equipment in large
companies directly linked to research and innovation activities 10.0 4.1
058. Research and innovation infrastructure (public) 34.4 16.0
059. Research and innovation infrastructure (private, including science
parks) 4.3 2.8
060. Research and innovation activities in public research centres and
centres of competence including networking 12.1 11.6
061 Research and innovation activities in private research centres including
networking 0.0 5.2
062. Technology transfer and university-enterprise cooperation primarily
benefiting SMEs 6.5 12.2
063. Cluster support and business networks primarily benefiting SMEs 8.7 5.1
064. Research and innovation processes in SMEs (including voucher
schemes, process, design, service and social innovation) 0.0 21.1
065. Research and innovation infrastructure, processes, technology transfer and cooperation in enterprises focusing on the low carbon economy and on
resilience to climate change 2.7 4.8
Total R&D&I 100.0 100.0 Source: European Commission, https://rio.jrc.ec.europa.eu/en/library/science-research-and- innovation-performance-eu-2016
Comparatively, the country is dedicating the third lowest share of ESIF towards R&D&I in the EU28. The planned results can be observed on:
https://cohesiondata.ec.europa.eu/.
112 Communication from the Commission: Investing in jobs and growth - maximising the contribution of European
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Figure 20 Shares of R&D&I as % of total ESIF 2014-2020
Source: European Commission
Based on the Stairway to Excellence Project113, the changes that may lead to more effective management/investment of ESIF, specifically related to R&D&I, are the following:
Fostering performance-based funding and focus on RIS3 areas;
Introducing predictability and regularity in the calls (e.g. periodic calls), esp. given that R&D&I projects require substantial preparatory phase;
Further improving inter-institutional coordination and institutional leadership (RIS3);
Encouraging wide-spread evidence-based policy making and possibilities for learning-by-doing;
Focusing infrastructural investments into the limited number of institutions with research and innovation capacity and potential;
Reducing administrative burden and introducing full electronic project submission and reporting;
‘Purifying’ the project evaluation process by including English language, international evaluators and proper compensation for the high-expertise evaluation work (guaranteeing impartiality, confidentiality and protection of IP rights);
Transforming information dissemination to project preparation support and capacity building, esp. at regional and local level.
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