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The report reviews the condition of the national innovation system and gives recommendations for the improvement of the innovation potential of the Bulgarian economy. Given the importance of the EU financial instruments for the development of Bulgaria’s innovation capacity, the report makes a review of the European innovation policy and the opportunities it offers to Bulgaria. examines the development of the national innovation system and the opportunities for its growth on the basis of five groups of indicators:

  • gross innovation product – it indicates the results of the operation of the national innovation system in the form of new products, technologies and research, as well as the main outcomes from the innovative activities of enterprises and the problems they face;
  • entrepreneurship and innovation networks – it presents two of the major sources of innovation for the Bulgarian economy – the establishment of new enterprises and the participation of Bulgarian producers in national and international networks for the development of new products and services;
  • investment in and financing of innovation – it reviews the investment in R&D for the development of innovation and the available innovation financing instruments in the country, as well as the role of foreign investment and the import of capital goods in the transfer of foreign technologies and knowledge;
  • human capital for innovation – it describes the existing general and specialized (research) human resources at the disposal of the national economy for adaptation and creation of innovation;
  • information and communication technologies (ICT) – it analyses the condition and use of the available information and communication infrastructure as the conduit of knowledge and innovation.


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