STARTUP ECOSYSTEM
Bulgaria Export/Import Ratio
The Path Forward: Improving Innovation and R&D Effectiveness
Efforts are being made to improve Bulgaria’s innovation capacity, especially through targeted initiatives and EU funding programs aimed at boosting R&D activities. However, the country still faces challenges in increasing funding levels and improving the overall effectiveness of R&D. To compete with other EU nations and boost its innovation landscape, Bulgaria will need to significantly increase its investment in research and foster a more conducive environment for scientific breakthroughs and technological advancements.
A Future with Potential
While Bulgaria’s patent filings and R&D spending remain relatively low compared to EU standards, there is clear potential for growth in these areas. By increasing investment in research and development and fostering an innovation-friendly environment, Bulgaria can strengthen its position in the global tech landscape. As the country continues to invest in digital transformation, there are exciting opportunities for further innovation in sectors such as telecommunications, energy, and machine engineering.
Exports:
- Electrical Machinery and Equipment: $5.38 billion.
- Total Exports of Technology Products: Approximately $4.99 billion (including machinery and vehicles).
Imports:
Electrical Machinery and Equipment: $6.47 billion
Total Imports of Technology Products: Approximately $6.28 billion (including machinery and vehicles)
Trade Balance:
Bulgaria’s trade balance for technology products shows a deficit, with imports exceeding exports. This indicates a dependency on foreign technology, as the country relies heavily on imported machinery and electrical equipment to meet its industrial needs
Sources:
- Trend Economy
- World Bank
- Economic Review 3/2024, Bulgarian National Bank
Bulgaria Funding volume
In 2024, Bulgaria's venture capital market is projected to reach US$32.23 million, with the early-stage segment expected to dominate, accounting for US$23.96 million of the total. The average investment size varies among different venture capital funds operating in Bulgaria.
Bulgaria Innovation index
Bulgaria is making strides in innovation and technology, yet the country still faces challenges in terms of patent filings and research and development (R&D) spending. Despite a relatively modest performance in comparison to other EU nations, efforts are underway to enhance Bulgaria’s position in the global innovation ecosystem.
Bulgaria Export/Import Ratio
Efforts are being made to improve Bulgaria's innovation capacity, especially through targeted initiatives and EU funding programs aimed at boosting R&D activities. However, the country still faces challenges in increasing funding levels and improving the overall effectiveness of R&D. To compete with other EU nations and boost its innovation landscape, Bulgaria will need to significantly increase its investment in research and foster a more conducive environment for scientific breakthroughs and technological advancements.
Bulgaria Startup density
Bulgaria has become an increasingly attractive destination for startups and entrepreneurs, ranking 37th globally and 6th in Eastern Europe for its startup ecosystem, according to StartupBlink. This upward trajectory in fostering innovation, particularly in sectors like software, artificial intelligence (AI), and e-commerce, has positioned Bulgaria as a key player in the region. The country’s dynamic entrepreneurial environment is reflected in the growing number of active startups and continued investment activity.
Bulgaria Investment in key sectors
Bulgaria has been steadily increasing both public and private investments in its technology sector, particularly in cloud technology, artificial intelligence (AI), cybersecurity, and software development. Known for its rich IT tradition, the country has become a leading player in the ICT sector, which is a crucial driver of its economy. In 2023, over 126,000 specialists were employed in the sector, reflecting the expanding demand for skilled professionals and the growing significance of technology in Bulgaria’s overall economic development.
