Bulgarian businesses are relying too much, as it seems, on the schemes funded by European programmes this year. Will local businessmen be able to make use of them? This question is undoubtedly important for many entrepreneurs, but there has been no definitive answer so far. Opportunities to negotiate and to use funds from the old programming period have been exhausted, and the parameters of the new one are yet to be agreed with the European Commission. Still there is some hope that in the fall of 2014 first procedures under the Innovation and Competitiveness programme may be opened. And if we trust the promises of the government – they will not be burdened by terrible paperwork, confusing information and extremely slow payments that have marked the seven-year life of the old Competitiveness programme.
For its better management in the future will contribute also the fact that Innovation and Competitiveness programme will have only two priority axes. This will allow for easier transfer of funds between the two, depending on the interests of the companies. The new financial engineering instruments are also expected to be presented (similar to JEREMY) which, however, will be more flexible and more affordable for businesses. According to the plans, there will be vouchers for fast-growing businesses, training and retraining courses and other such tools. All this should facilitate a more efficient use of resources for innovation and increasing competitiveness by 2020. The money here total EUR1,192,711,000. Of these, EUR1,037,140,000 ( 85%) represent a non-refundable grant from the EU and the remaining EUR174,332,000 is the sum of the national co-financing.
Most of the money – EUR846,824,810 (71 % of the total) is intended to go to the first priority axis, entitled „Entrepreneurship, Export and Production Potential.“ This axis on its turn is divided into two thematic subgroups. One is called „Technological Development and Innovation“ (smart growth) and will receive 27%, or EUR322,031,970 of the money earmarked for the priority axis. These funds will finance all projects related to the development and introduction of innovative products, processes and business models by investing in research and innovation. Under this scheme on support can rely innovative start-ups and joint initiatives for research and innovation between academia and businesses. It will promote the development of infrastructure for innovation and research. This category includes thematically focused certification and measuring laboratories for testing and proof of concepts for test models and utility models, and technology centres. Beneficiaries may be micro, small, medium and large enterprises, intermediate plants, i.e. mid-caps (depending on the final provisions of applicable regulations), agencies, departments and business organizations and other entities engaged in the provision of support services for companies and improvement of the business environment. It also includes the development and upgrade of the Sofia Tech Park, or of its successor.
Other thematic subtarget, Competitiveness and Productivity of Enterprises (rapid growth), will rely on EUR524,792,840, or nearly half of all the money of the programme. This is understandable – i.e. it is the one that covers the most attractive ventures for business – for investments in technological modernization. According to estimates the grant will cover the cost of advanced technology and equipment, which may contribute to the development of new products and services with high added value as well as improve production processes. Money can be directed to provide professional consulting services related to the introduction of new products to new processes or services.
This thematic subgroup includes well-known business measures for the implementation of internationally recognized standards and certifications. In fact, such is expected to be the first open procedure at the end of this year. As it is already well-known, in the previous programming period, thousands of companies tried to meet EU requirements in this field through this mechanism, but few succeed. So now, a large influx of applicants is probable.
What will also be funded are projects for new ICT-based services, manufacturing and distribution methods, and the introduction of e-commerce in enterprises. This is a new area for support, which was not present independently in the previous programming period.
Another novelty is the support for the so-called fast-growing companies and start-ups in the field of digital technologies and the internet. In Bulgaria there are between 1,500 and 17,000 such small and medium-sized companies (without micro-enterprises – those with up to nine employees), which are only about 6% of all firms but account for about 40% of the value added. It is these companies that will be supported by those vouchers. The valuable papers will be given for the implementation of a specific investment plan.
As for clusters, for which in the past programming period huge financial resources were allocated, but were never utilized, in the future they will be supported only where justifiable after a preliminary analysis.
Last but not least, part of the funds under the Competitiveness and Productivity of Enterprises thematic subaxis will go to institutions such as the Executive Agency for Promotion of SMEs, for example for the provision of services to businesses. This will affect the implementation of various programmes for internationalization of enterprises, to help them participate in national and international exhibitions, to promote Bulgarian production, but also for programmes to attract foreign investment in the marketing of tourism products, develop new services for businesses and other.
The second priority axis under Competitiveness and Innovation OP is Green and Efficient Economy. Its budget is 26% of all funds under the programme, or EUR 310,104,860 and, as its name suggests, is mostly related to energy efficiency. Large enterprises will be able to benefit from the resources, and namely the ones that pollute environmental the most and whose production is energy-intensive.
This axis – will finance the projects to increase energy security and independence of the country, and money will go to the project for the construction of an interconnector gas link between Bulgaria and Serbia, that will be worth around EUR57 million.
The remaining EUR35,781,330 from the budget of the OP are for technical assistance.
