Competitiveness Initiatives in the Europe and Eurasia Region

Sofia, Bulgaria June 8 - 10

PresentationBulgarian Competitiveness InitiativeDevelopment process, implementation and results

PHASE 1 – The Bulgarian Competitiveness Exercise (1) Approximately 70 presentations (mixed and industry

specific groups) to over 2000 people all over the country

Over 40 appearances on TV and radio throughout the country

Interviews and articles have been published in all daily, weekly and monthly newspapers and magazines, and more specifically several series in all leading business newspapers and magazines

Web site developed – www.competitiveness.bg Video developed and widely disseminated (includes

interviews with Garrett Fitzgerald, former PM of Ireland, several Bulgarian business leaders, and former President Stoyanov)

Competitiveness Benchmarking Report for Bulgaria developed and disseminated to representatives of the business community, Government, Parliament and donors

Competitiveness Questionnaire has been prepared by the IME / Bulgaria, based on a questionnaire of the Monitor Company and a previous poll of the World Bank conducted in five Balkan countries. (Over 160 responses)

Six case studies and five overviews developed (Overviews - Factor Conditions; Domestic Demand Conditions; Tourism 2000; Wine Industry and Financial Sector; and Case Studies - Canning Industry, Unimasters Logistics, Vinzavod Assenovgrad, Sirma, EPIQ, Wooltex)

Short study on geographic clustering of industry in Bulgaria developed by FED / Bulgaria, which was in fact the first try at cluster mapping

PHASE 1 – The Bulgarian Competitiveness Exercise (2)

National Competitiveness Conference – Key note speaker: Joe Maria Figueres, former President of Costa Rica

In-depth round tables and working groups organized with 6 sectors: textile / garments, wine, tourism, shipping / transport, fruit and vegetable processing and IT

Final Competitiveness Report developed and disseminated to the widest range to the business community, Government, Political parties and donors

At the end the BCE, the topics of competitiveness andcluster development were part of the vocabulary andactivities of all political parties, Parliament, Government,business community, as well as the rest of the donors,which, since then, have started and continue to implementcompetitiveness or cluster development projects.

PHASE 1 – The Bulgarian Competitiveness Exercise (3)

Before continuing on to PHASE 2…

After the massive media coverage, reports,surveys, seminars and conferences, theProject decided to pull back and wait for themost interested, organized and forwardlooking sector(s) to approach the Project anddecide to go forward as a full partner in theprocess and not just a participant

PHASE 2 – The Bulgarian Competitiveness Initiative (BCI): IT The IT sector approached us and the Project decided

to support their initiative. The IT sector was chosen because:

Only ones that organized themselves (all leading associations, small and large Bulgarian and foreign companies came together)

Came with a concrete proposal, to develop a National IT Strategy

The new Government, at that time, established the first ever IT position (Deputy Minister of Transport and Communication) and an ICT Agency

Last but not least, we believe that IT is the catalyst for the economic growth of all other economic sectors in Bulgaria

PHASE 2 – BCI: IT Working group on the Strategy was established and the true

leaders came forward, which became the core IT group. The core group was supported by USAID on a study tour to

the Silicon Valley A study tour to Bilbao was organized by BASSCOM and co-

sponsored by the association and participants After extensive discussions and analysis, the core group and

a wide number of business and Government supporters with local and international experts – a first draft was developed, disseminated for comments and then finalized.

The core IT group got the strategy accepted and supported by the Prime Minister, President, all economic Ministers, the CEG, the whole IT community and finally was officially accepted by the Council of Ministers.

Implementing the IT Strategy ICT Cluster Center established Public – private dialogue on ICT issues constant and

very professional Branding Bulgaria – ICTalent ESI Center / Bulgaria established (one of 6 in the

World) Toolkit for Technology Parks developed IT solutions for business brochure developed and

disseminated Education working groups; LaSalle, Stevens University iBulgaria Program by the MoTC – Computerization of

schools, Tele-centers, Virtual University Investment Delegation to the US

Global “guru” network

Overview of ICT Cluster System

IT IT COORDINATIONCOORDINATION

CLUSTERCLUSTERCENTERCENTER

InternationalIT Companies

in Bulgaria

Bulgarian-Owned

IT Companies

“Quick start”eCenterFacilities

•Tele-centers•Incubators

•Business Centers•Learning Centers

•E-Gov Portal

University-affiliated Talent(includes startup IT entrepreneurs)

Business and

Technology Parks

Innovators / Inventors

International IT Companies

in Bulgaria

Bulgarian-Owned

IT Firms

RegionalUsers

Basic ITEducation,Training,

Re-Training

Global Outsourcing Marketplaces (e.g. elance.com, rentacoder.com)

Municipalities(offer lands, buildings

to PPPs)

VirtualCenters ofExcellence

USA

UK UAE

GER FRA

PPP IT Promotion Networks Abroad

EuropeanSoftwareInstitute

Online Opportunities Exchange national portal for credential-building projects

VirtualIncubator /

BusinessAccelerator

Private Developers

(invest in PPPs)

Technology Scholarship

Fund

Government

BusinessAssociations

NGOs

NationalIT Policy

(IT Body)

Bulgarian SMEsfrom all economic

sectors

Bulgaria ICT logo

ESI Center Bulgaria is the Regional Software Engineering Excellence Center of the European Software Institute. ESI Center Bulgaria founders are the European Software Institute (ESI), the Bulgarian Association of Software Companies (BASSCOM), and the Information and Communications Technologies Development Agency (ICTDA) at the Bulgarian Ministry of Transport and Communications. ESI Center Bulgaria implements leading strategic management and software engineering methodologies (CMM®I, BITS, SPICE, PEPIT, SPI, REUSE) to increase industry maturity in Eastern Europe.

ESI Center Bulgaria is responsible for all SEI/ESI Eastern Europe Transfer of new technologies Independent methodological and

monitoring assistance Long-term projects with greater

social impact Industry – education links strengthening

European Software Institute – Regional Center Bulgaria

Investment Delegation

Participants – Minister of Finance; Deputy Minister of Transport and Communications; President of the Invest Bulgaria Agency; over 40 leading companies, associations and NGOs

Visited the Silicon Valley; Seattle and Tacoma, Washington; Washington D.C.; Fairfax County, Virginia; New York

The Delegation was co-sponsored by the Project, GoB and the companies themselves

Investment Delegation Results 6 events promoting Bulgaria in 5 locations (Sillicon Valley

- Stanford University, Palo Alto, California; Seattle, Washington; Tacoma, Washington; Fairfax County, Virginia; Washington D.C.)

5 of the largest IT companies visited (HP, Siebel, Cisco, Intel, Microsoft)

4 CEOs met with the Delegation in two days (Carly Fiorina - HP, Siebel, John Chambers - Cisco, Craig Barret - Intel)

Over 200 US companies visited the different events Delegation met with Governor elect and Lietenant

Governor of Washington State, as well as the Center for Strategic and Internation Studies in Washington D.C.

Around 20 potential investment leads have been established for follow up and trips to Bulgaria, including HP, Siebel, Cisco, and Intel

Investment Delegation Results Each company established up to 8 good leads for

partnerships With preliminary work 3 companies signed 4 contracts

during the delegation, one of them with the State of Georgia for security solutions for their drivers’ licenses

BASSCOM signed MoU with the Washington Software Alliance and became a member of the organization.  The WSA is the oldest Software NGO in the US and has over 3,000 members

The Bulgarian Commercial Office at the Embassy in D.C. became a member of the Northern Virginia Technology Council, giving the Bulgarian software companies the linkage to 1,300 members of their members

The Bulgarian Associations had the opportunity to meet over 10 US Associations and NGOs throughout the trip

PHASE 2 – BCI: CEG Council for Economic Growth (CEG)

established as the National forum for public – private dialogue on economic issues

Chairman – Minister of Economy Government Members – Deputy PM and

Minister of Transport and Communications, Ministers of Finance, Social Affairs, Regional Development and Energy

Private Sector Members – BIBA, BIA, BCCI, Employers’ Association and Business Club Vazrazhdane

PHASE 2 – BCI: CEG 76 decisions, 46 registered as implemented 51 meetings held 89 issues looked at, including 6 National

Strategies (IT, Investment Promotion and Innovation), 16 Draft Laws and 18 Regulations

Some of the other most important joint decisions – Labor Code, Reform in the Commercial Register, Agreement of ecological requirements of industry and Assigning Commercial Attaches abroad on the PPP model

Lessons Learned HAVE to HAVE business leadership Time factor – initial expectations, WILL NOT

HAPPEN as QUICK as YOU THINK or WANT HAVE to USE World renowned leaders to build

interest EVOLVE to partners and leaders, NOT ONLY

participants and followers HAVE to HAVE real contribution HAVE to WORK on a concrete task ORGANIZE and PARTICIPATE in as many

retreats and delegations abroad with partners