Perspectives of Innovations, Economics and Business

  Previous Article | Back to Volume | Next Article
  Abstract | References | Citation | Download | Preview | Statistics
Volume 5
Issue 2
Online publication date 2010-06-08
Title Barriers and future policy directions to knowledge demand and absorption in South and East Bulgaria
Author Statty Stattev, Mariana Kotzeva, Stela Raleva
Abstract The paper analyses SMEs competitiveness, innovation and knowledge networks using data gathered through a range of interactions with innovative SMEs including interviews and consultations with 50 innovative SMEs from a range of sectors in the region and a focus group with 8 managers of non-innovative SMEs. Survey results show that the region of South and East Bulgaria rely more on the tacit knowledge of their human resources rather than on their formal qualifications (codified knowledge). Bulgarian SMEs are facing mainly with problems of survival and business extension an still do put not enough emphasis on the role of knowledge to the firms’ competitiveness. Finding the appropriate policy initiatives to encourage firms to incorporate innovation strategy into the overall business development strategy is becoming a serious challenge for the government. A major factor hampering SMEs in carrying out R&D and innovation is the lack of financial resources. And there is still a large room for improvement and finding the appropriate mechanisms to support SMEs innovation and R&D invetsment. The uncertain demand for innovation product and services also appears to be a substantial factor hampering innovative activities in SMEs. This finding suggests that the general economic environment in the country does not stimulate the production of innovative products and services. Hence one of the avenues of promoting innovation is to convince SMEs that they will benefit from the results of their research efforts. The interviewed firms consider further elaboration of the system for business support and advice, improving physical infrastructure and allowing companies to locate in better equipped premises as the next step to form the core national regional innovation policy in the country.
Citation
References
Applied Research and Communications Fund, 2004. South-Central Planning Region: Regional innovation strategy

Applied Research and Communication Fund, 2005. Center for Study the Democracy, Innovation Strategies, Issue 1: Sofia

European Commission, 2002. Communication from the Commission to the European Council and Parliament, Innovation in a knowledge-driven economy: Brussels

European Commission, 2003. Cordis Focus, European Innovation Scoreboard, Issue 20: Brussels

European Trend Chart on Innovation, 2005. Methodology Report on European Innovation Scoreboard

Huggins, R. and Izushi, H., 2002. World Knowledge Competitiveness Index 2002: Benchmarking the globe’s high performing regions, Robert Huggins Associates: Cardiff

OECD, 2004. Bulgaria: Science, research and technology

OECD, 2005. Stability Pact, Investment Compact for South East Europe, Enterprise Policy Performance Assessment: Bulgaria

 Petrov, M., Stefanov, R., (Eds.), 2006. Innovation.BG: Measuring the innovation potential of the Bulgarian economy: Sofia

Petrov, M. (Ed.), 2004. Innovation - policy and practice, Applied Research and Communications Fund: Sofia

Keywords SMEs, innovations, R&D, knowledge demand.
DOI http://dx.doi.org/10.15208/pieb.2010.34
Pages 7-13
Download Full PDF Download
  Previous Article | Back to Volume | Next Article
Share
Search in articles
Statistics
Journal Published articles
PIEB 611
Journal Hits
PIEB 1561823
Journal Downloads
PIEB 27316
Total users online -