site.btaBulgaria Lags Behind EU Average in R&D Spending - National Review

Bulgaria has demonstrated progress on some key indicators of the United Nations (UN) Sustainable Development Goals (SDGs) - Goal 9: Industry, Innovation and Infrastructure, such as the per capita value added of industry and the eco-innovation index, as well as the almost full coverage of 5G technologies. Despite these positive trends, the country continues to lag behind the EU average in areas such as R&D expenditure, industrial productivity and staff employed in science. These are some of the conclusions of the Second Voluntary National Review of the implementation of the UN Sustainable Development Goals in Bulgaria published for consultation on the Portal for Public Consultation.

The review of national progress in achieving the goals covers the 2015 to 2024 period.

In September 2015, the UN General Assembly adopted Transforming our World: The 2030 Agenda for Sustainable Development, which included 17 SDGs and 169 sub-goals. Bulgaria viewed the goals as a long-term commitment, which is set out in the framework national strategic document National Development Programme BULGARIA 2030. In March 2024, the Bulgarian government launched a process to prepare the Second Voluntary National Review of SDG implementation in Bulgaria.

According to the review, there has been improvement in some respects but also falling behind in others.

Positive trends

There was a 38.25% increase in per capita value added from industry. This indicates an improvement in the efficiency and productivity of the industrial sector, probably due to modernization of production processes, increased competitiveness and strengthening of export-oriented industries. Although the value remains below the EU average, this growth is a clear indicator of significant potential for economic development.

Another positive trend is the steady growth in the relative share of value added created by medium and high-tech industries, which testifies to a structural transformation of the economy towards higher value-added sectors and an increased role of innovation.

Growth in the eco-innovation index was also reported as a positive trend. The improvement is a significant step towards the integration of sustainable solutions in the economy, although levels remain below the EU average.

Other positives listed in the review included stability of SMEs and progress in mobile communications infrastructure.

Challenges

Among the challenges identified in the national review was the declining share of buses and trains in domestic passenger transport. The average share of buses and trains in domestic passenger transport in Bulgaria over the period was 14%, with an average annual decrease of 2.12%. Despite a slight recovery to 13.1% in 2022, the share remains below the EU average. This reflects a lag in the development of this mode of transport compared to European standards. The negative trend may be due to increased reliance on private cars and other alternatives to public transport

Limited progress was also reported on the indicators for R&D and innovation. R&D expenditure averaged 0.8% of GDP, with a negative variation of 2.92%. Expenditure in the enterprise sector was even lower at 0.6%, pointing to a weak connection between research and business. Although budget expenditure on R&D increased to BGN 417.5 million in 2023, human capital remained limited, with 2,235.5 researchers per million inhabitants, an increase of 3.38% but below the EU average.