Cluster Buzz in BSEC

Sofia, April 10th 2013Grand Hotel Sofia

Clusters:• Competitiveness: from European industrial

revolution 19th century - Nobel Prize winner Robert E. Lucas, Jr., "For the first time in history, the living standards of the masses of ordinary people have begun to undergo sustained growth” – through Porter 1990 and nowadays.

• Effectiveness: R&D, Production, Marketing and Sales; Implementation and Support

• Complementary resources: Finance, Assets, Human resources, Facilities

ICT Clusters and SME in Bulgaria• Cluster-preneur period 2004-2011: attempt to

copy industrial cluster approach• First challenges: ICT are horizontal – applicable in

very different sectors: Telecom, Microelectronics; Software development; WEB services/commerce; old industries, public e-services

• PHARE/EU programs impact: focused on formal procedures rather than results

ICT Clusters and SME in Bulgaria• Beginning of Cluster-development period 2012 -

nowadays: first trained cluster managers, first outer market successes, first steps in common R&D and cooperation with academic sector.

• First cases for cross-sector collaboration between ICT and other industries.

• Challenges: pushed by global market fears competition, leading EU cluster move faster and faster to cluster management excellence

Bulgarian ICT Clusters and SME today• ICT clusters in Sofia, Plovdiv, Varna with members

mainly SME and joined by Universities, Municipality of Plovdiv, Professional organizations as BASSCOM, BWA,..

• Cluster for microelectronics and Embedded systems – dominated by FDI of leading EU groups and SME

• Bulgarian Telecommunication Cluster – SME, Sofia Technical University

• ICT related: CASTRA, HITS, NCITES, Sofia HTC - SME

ICT sector SME +• High ‘birth rate’ due to many national and EU

programs to support entrepreneurs • Low entry cost, low CAPEX • Establishment and availability of risk financing

tools: accelerators, incubators, BA clubs, VC• Extremely fast technology development and

availability: broadband, mobility, cloud, virtualization, cognitive human centric WEB

ICT sector SME –• Small size teams/companies situated on global

markets – extremely competitive environment• Lack of skill/understanding of outer markets• Lack of operational financing for R&D• Niche products/services in the era of ‘turn

key’• High admin load of OP and/or state aid

BSEC economies and market challenges• High deviation among size of member state

economies and demographics characteristic• High deviation in legal/commercial legislation• EU/non EU members• Political instability and frequent tax changes• Clusters are still non reasonably high dependant

by state aid; support programsNo SME friendly environment!

Clusters and SME stop factors for getting regional • Ocean of information, which is not knowledge for

market forces, market demand, legislation and taxes

• Typically does not have proven track records for product/service delivery with mass scale – no brands, no name

• State aid programs for export support – campaign oriented

• Very limited cross-boarder labor mobility

And the solution is (among many others):• Clusters as concentrators of industry and

technology knowledge – one stop shopping points

• Clusters as herald of collaboration culture• Clusters as resourceful partner • Clusters as being able to build and follow long

term development policies

Examples:• ICT Cluster Sofia – E poludne Cluster Katowice;

ICT Cluster Bern; Corallia Cluster Initiative Greece• ICMA and NiCAT Nis• ?• ?• And I hope much more to be created after our

two days conference

Science and technology parks and Clusters• Perfect environment for transferring

innovation into industrial product/service.• Unique mix of entrepreneurs, science LABs,

multinational companies and SME; clusters; incubators and accelerators; easy to implement “smooth landing services”

• Shared highly complex technology and science facilities

Black sea ICT Cluster network• First attempt: SEE ICT – boosted by USAIDWhat’s new:• H2H focused, instead C2C or B2B – club of Cluster

managers/facilitators and virtual platform for shared demand/offer processes

• Labor mobility – removing hidden barriers• Shared facilities through STP network• Demand oriented messaging – no SPAM

Expected results:• To shorter time for technology/business topics

resolution in the region• To shorter time forming powerful consortiums for

application in Horizon 2020; COSME; cross boarder cooperation programs

• To spread around principles of free trade, common market, unified commercial and business legislation

• To be up and running within an year, Bulgarian ICT Custer community will bear first year cost and support

Thank you very much for your patience and attention!

Peter StatevChairman, Bulgarian ICT Clusterpeter_statev@ictcluster.bgwww.ictcluster.bghttp://its4sme.eu/