05.10.2022

COMPETITIVENESS AND INNOVATION FOR BULGARIAN ENTERPRISES WITH A PROGRAM FOR 1.5 BILLION EUROS

The European Commission has approved the Program for Competitiveness and Innovation in Enterprises (CIEP) worth 1.5 billion euros.

It provides targeted support to Bulgarian companies to overcome the main problem areas that are delaying the transformation of the Bulgarian economy into an innovative, digital, low-carbon and efficient use of resources. More than 85% of the CIEP budget, or €1.3 billion, is dedicated solely to small and medium-sized enterprises (SMEs). The main goals of the program are to achieve smart and sustainable growth of the Bulgarian economy, as well as industrial and digital transformation. Other priorities include:

development and strengthening of capacity for scientific research and innovation and implementation of advanced technologies; promoting sustainable growth, job creation, internationalization and competitiveness of SMEs; ensuring the benefits of the digital transition; transition to a circular and energy-efficient economy.

The types of activities that will be supported are the following:

support for innovation in start-up and fast-growing enterprises in the field of high-tech industries; promoting digitization, including solutions to ensure cyber security, and developing technologies necessary for the transition to Industry 4.0; support for the introduction of low-carbon and energy-efficient technologies, certification of energy management systems and incentives for renewable energy sources; support for SMEs in introducing technologies for the efficient use of natural resources, increasing recycling rates, modernizing waste management technologies and promoting partnerships between enterprises and the sharing of good practices.

Part of the program budget (35%) will be implemented through financial instruments, such as bank loan guarantees and capital investments at all stages of SME development. This will ensure a more efficient and sustainable use of EU resources in support of projects that generate income and savings.

The new "Competitiveness and Innovations" program is a continuation of the well-known OPIC from the previous program period for the European funds 2014-2020. The first procedure, which will be launched by the end of this year, is for projects to develop innovations of micro-, small and medium-sized companies from various sectors of the economy. BGN 127 million have been allocated for this purpose. The next procedure, which is expected to start in early 2023, is to improve the production capacity of SMEs, family businesses, businesses in the creative industries and crafts. It has a budget of BGN 117.5 million.

You can see more about the EU cohesion policy and the partnership agreement with Bulgaria on the following page.