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Innovations in Existing Clusters as an
Economic Driver for
Competitiveness
THE CONTEXT: ECONOMIC CYCLE
Recovery - Spring Peak - Spring
Recession - FallTrough - Winter
Just wait for the next economic cycle?
ECONOMIC CYCLES IN BULGARIA
(GROWTH RATES - % OF GDP)
FOREIGN DIRECT INVESTMENT (FDI)
WE ARE MISSING 8 BILLION EUROS?
FDI in EUR millions:
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
€ 9,052 € 6,728 € 2,437 € 1,151 € 1,746 € 1,320 € 1,383 € 1,160 € 2,534 € 701 € 902 € 1,101
CONTINUOUS TRADE DEFICIT
Trade Deficit: for the last decade we are importing more than exporting
CONTINUOUS GOVERNMENT BORROWING
The government keeps on increasing our foreign debt:
CONTINUOUS PRIVATE SECTOR BORROWING
WHAT ARE THE OPTIONS?
Option 1
Find new foreign
direct investments
for Euro 8 billion.
Option 2
Increase
exports with
Euro 8 billion
Option 3
Accept lower
standard of living
HOW CAN WE INCREASE OUR EXPORTS
WITH EURO 8 BILLION?
Option 1
By creating new innovative
companies with products
and services that are with
high value added and are
competitive in the
international markets.
Option 2
To sell products and
services at lower prices
than the international
competition.
Low standard of living
HOW EASY IS TO CREATE COMPETITIVE COMPANIES IN
2018?
1874
1) Having a good idea
2) Setting up a company
3) Start of manufacturing
Alexander Bell
Bell Telephone Company
2018
42% of the Bulgarian economy is in traded clusters and Construction
constitutes 19% of the traded clusters revenues
12%
22%
42%
45% 23%
4%
14%
Revenues
(‘000 EUR)
100%
Employees Companies
4%
Traded
79.109.955
2%
2.772.779
Natural
Resource
Driven
373.760
Unclassified
Local 40% 39%
53%
Note: Local cluster is the one, serving only the local market
Source: Centre for Economic Strategy and Competitiveness, Amadeus, European Cluster Observatory
CLUSTER DISTRIBUTION IN BULGARIA
OPPORTUNITY FOR COMPETITIVENESS:
EXISTING TRADED CLUSTERS WITH EXPORT POTENTIAL
Note: Local cluster is the one, serving only the local market
Source: Centre for Economic Strategy and Competitiveness, Amadeus, European Cluster Observatory
Farming & animal husbandry
Agricultural pr.
Processed food
Agri-food
IT & Outsourcing
Paper pr.
Maritime
Textiles
Other
Aerospace
Sport &
Recreation goods
Construction
Metal manuf.
Automotive
Processed
food
Buildings related
T&L
Heavy Machinery
Production tech.
Transport Eq &
Machine building
Oil and gas
Other
Tourism &
hospitality
T&L
Local
Transport & Logistics
Pharmaceuticals
Local
Healthcare
Maritime
Tobacco
Local
Natural resource driven
Chemical
OtherTelecom
Business services
Local
Instruments
Medical devices
Other
Lighting & electrical eq.
Power
Metal manuf.
IT
Telecom
Electronics & Electrical
Natural resource
driven
Construction
Automotive
Textiles
Pharmaceuticals
Oil and gas
Buildings related
Paper pr. Plastics
Chemical pr.
Other
Priority sectors and clusters in them
(revenues)
The activities in every priority sector are related to various clusters
Cluster name
Priority sector
13
L. bulgaricus
L. Lactis
(4 cells)
TRADITIONAL CLUSTER: BULGARIAN YOGURT STARTERS
14
PROVIOTIC: INNOVATION WITH THE TRADITIONAL
YOGURT STARTER CULTURE
 Plant based good bacteria (L. bulgaricus GLB44)
 Extracted from the Snowdrop flower in the mountains of Southeast Europe
 Grown in certified organic vegetable juice. Contains only L. bulgaricus GLB44 and traces
of organic vegetables.
 There are no carriers, no fillers, no preservatives, no artificial ingredients.
15
PROVIOTIC HAS TWO US PATENTS FOR
THE USE OF L. BULGARICUS GLB44 AS A PATHOGEN
INHIBITOR IN FOOD
Juice Press has now 50 locations in Manhattan, it adds ProViotic to all of its juice recipes!
16
JUICE PRESS: PROVIOTIC IN RAW JUICE
Пробиотик
CLEAN LABLE: FIRST FERMENTED SAUSAGES
WITHOUT NITRATES
Пробиотик
CLEAN LABEL HUMUS – NO PRESERVATIVES
FIRST VEGAN ORGANIC PROBIOTIC
THE ONLY PROBIOTIC THAT IS DISCOVERED ON A FLOWER AND GROWN IN JUICE
 Certified organic
 100% vegan
 No major allergens (lactose free, gluten free, soy free, nuts free)
 No artificial ingredients
 No GMO
 No bloating (homofermentative)
 Researched by Harvard Medical School scientists
20
WORKING TOGETHER WITH NOBEL LAUREATE DR. MARSHALL
AND HARVARD MEDICAL SCHOOL
PROVIOTIC FEATURED IN:
OPRAH’S CHOICE
FEATURED IN O-MAGAZINE
THE LIFE SCIENCES LAB AT HARVARD
•
Meeting place for all
young scientists in
the field of life
sciences
Course for
entrepreneurship
and innovation in
life sciences
Applied
biotechnology
laboratory
DR. TROPCHEVA
THE YOUNG SCIENTIST MANAGING CASI
BIOTECHNOLOGY LABORATORY
ENTREPRENEURSHIP AND INNOVATION COURSE
SCHUMPETER’ CREATIVE DESTRUCTION
Creative
Destruction
Status Quo
Invention
Innovation
Imitation
…and the Role of the Entrepreneur
Cardio Probiotic
with Antioxidants
from Grapes Skins
Contraceptives with
antifungal properties
The first Symbiotic: L. bulgaricus and
Spirulina
Good bacteria as a
preservative to
meat (no nitrates)
Anti-microbial food
packaging
THE NEW BIOTECH STARTUPS
Subscription Tampon Company
with Personal Diagnostics

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Kiril Petkov Innovation Explorer 2019

  • 1. Innovations in Existing Clusters as an Economic Driver for Competitiveness
  • 2. THE CONTEXT: ECONOMIC CYCLE Recovery - Spring Peak - Spring Recession - FallTrough - Winter Just wait for the next economic cycle?
  • 3. ECONOMIC CYCLES IN BULGARIA (GROWTH RATES - % OF GDP)
  • 4. FOREIGN DIRECT INVESTMENT (FDI) WE ARE MISSING 8 BILLION EUROS? FDI in EUR millions: 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 € 9,052 € 6,728 € 2,437 € 1,151 € 1,746 € 1,320 € 1,383 € 1,160 € 2,534 € 701 € 902 € 1,101
  • 5. CONTINUOUS TRADE DEFICIT Trade Deficit: for the last decade we are importing more than exporting
  • 6. CONTINUOUS GOVERNMENT BORROWING The government keeps on increasing our foreign debt:
  • 8. WHAT ARE THE OPTIONS? Option 1 Find new foreign direct investments for Euro 8 billion. Option 2 Increase exports with Euro 8 billion Option 3 Accept lower standard of living
  • 9. HOW CAN WE INCREASE OUR EXPORTS WITH EURO 8 BILLION? Option 1 By creating new innovative companies with products and services that are with high value added and are competitive in the international markets. Option 2 To sell products and services at lower prices than the international competition. Low standard of living
  • 10. HOW EASY IS TO CREATE COMPETITIVE COMPANIES IN 2018? 1874 1) Having a good idea 2) Setting up a company 3) Start of manufacturing Alexander Bell Bell Telephone Company 2018
  • 11. 42% of the Bulgarian economy is in traded clusters and Construction constitutes 19% of the traded clusters revenues 12% 22% 42% 45% 23% 4% 14% Revenues (‘000 EUR) 100% Employees Companies 4% Traded 79.109.955 2% 2.772.779 Natural Resource Driven 373.760 Unclassified Local 40% 39% 53% Note: Local cluster is the one, serving only the local market Source: Centre for Economic Strategy and Competitiveness, Amadeus, European Cluster Observatory CLUSTER DISTRIBUTION IN BULGARIA
  • 12. OPPORTUNITY FOR COMPETITIVENESS: EXISTING TRADED CLUSTERS WITH EXPORT POTENTIAL Note: Local cluster is the one, serving only the local market Source: Centre for Economic Strategy and Competitiveness, Amadeus, European Cluster Observatory Farming & animal husbandry Agricultural pr. Processed food Agri-food IT & Outsourcing Paper pr. Maritime Textiles Other Aerospace Sport & Recreation goods Construction Metal manuf. Automotive Processed food Buildings related T&L Heavy Machinery Production tech. Transport Eq & Machine building Oil and gas Other Tourism & hospitality T&L Local Transport & Logistics Pharmaceuticals Local Healthcare Maritime Tobacco Local Natural resource driven Chemical OtherTelecom Business services Local Instruments Medical devices Other Lighting & electrical eq. Power Metal manuf. IT Telecom Electronics & Electrical Natural resource driven Construction Automotive Textiles Pharmaceuticals Oil and gas Buildings related Paper pr. Plastics Chemical pr. Other Priority sectors and clusters in them (revenues) The activities in every priority sector are related to various clusters Cluster name Priority sector
  • 13. 13 L. bulgaricus L. Lactis (4 cells) TRADITIONAL CLUSTER: BULGARIAN YOGURT STARTERS
  • 14. 14 PROVIOTIC: INNOVATION WITH THE TRADITIONAL YOGURT STARTER CULTURE  Plant based good bacteria (L. bulgaricus GLB44)  Extracted from the Snowdrop flower in the mountains of Southeast Europe  Grown in certified organic vegetable juice. Contains only L. bulgaricus GLB44 and traces of organic vegetables.  There are no carriers, no fillers, no preservatives, no artificial ingredients.
  • 15. 15 PROVIOTIC HAS TWO US PATENTS FOR THE USE OF L. BULGARICUS GLB44 AS A PATHOGEN INHIBITOR IN FOOD
  • 16. Juice Press has now 50 locations in Manhattan, it adds ProViotic to all of its juice recipes! 16 JUICE PRESS: PROVIOTIC IN RAW JUICE
  • 17. Пробиотик CLEAN LABLE: FIRST FERMENTED SAUSAGES WITHOUT NITRATES
  • 18. Пробиотик CLEAN LABEL HUMUS – NO PRESERVATIVES
  • 19. FIRST VEGAN ORGANIC PROBIOTIC THE ONLY PROBIOTIC THAT IS DISCOVERED ON A FLOWER AND GROWN IN JUICE  Certified organic  100% vegan  No major allergens (lactose free, gluten free, soy free, nuts free)  No artificial ingredients  No GMO  No bloating (homofermentative)  Researched by Harvard Medical School scientists
  • 20. 20 WORKING TOGETHER WITH NOBEL LAUREATE DR. MARSHALL AND HARVARD MEDICAL SCHOOL
  • 23. THE LIFE SCIENCES LAB AT HARVARD •
  • 24.
  • 25. Meeting place for all young scientists in the field of life sciences Course for entrepreneurship and innovation in life sciences Applied biotechnology laboratory
  • 26.
  • 27. DR. TROPCHEVA THE YOUNG SCIENTIST MANAGING CASI
  • 30. SCHUMPETER’ CREATIVE DESTRUCTION Creative Destruction Status Quo Invention Innovation Imitation …and the Role of the Entrepreneur
  • 31. Cardio Probiotic with Antioxidants from Grapes Skins Contraceptives with antifungal properties The first Symbiotic: L. bulgaricus and Spirulina Good bacteria as a preservative to meat (no nitrates) Anti-microbial food packaging THE NEW BIOTECH STARTUPS Subscription Tampon Company with Personal Diagnostics