Shared Views

SHARED
views
competitiveness collaboration clusters networks innovation sustainability globalisation
TCIEUROPEAN CONFERENCE
Sofia, Bulgaria20.03 - 22.03
2018
Welcome!
to share your views in Sofia!
Strategy
Case studies
From the organisers
Probiotics project
Big Interview
Evaluation
A big Balkan welcome to all our delegates, friends, speakers,
partners, supporters and other attendees at the TCI Network
European Conference in Sofia 20 – 22 March, Hotel Marinela.
We hope you are as thrilled to arrive in Sofia as all of us
who have played a part in organising this conference
and connected events – for the first time in Bulgaria.
We are all very proud to welcome you, one and all,
and we know that the enthusiasm, inspiration
and hard work that all of the TCI Network
community has put into our common subject
matter and professional passion will be displayed
over the coming days at the annual conference.
Our wish is that you use our team, our facilities and our
help and advice to get the most from your stay and the
conference.
Our corner of Europe does not always get the attention it may
deserve, so it is a real honour to welcome such an array of distinguished
guests and we hope that this rare chance to see first hand some of the
projects we are championing in this part of the world will be an experience
you will treasure. We very much welcome also your thoughts and feedback on our
conference and our local projects: we all wish to improve things together.
So spread your knowledge and your best values among us, and take back the very best of
the Balkan experience to your homes and offices at the end of proceedings.
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Publication
Page 14 -15
A central aspect of shared
value is cluster development.
Strong clustering initiatives
upgrade the skills and
supplier base, develop and
link supporting institutions,
and enable businesses and
communities to grow.

clusterstrategy
international
companies
industries
people
members
TEAM
buildone
brand
economic
value big
initiative
identity
marketing
team
clusterategy
international members
TEAM
bui
brand
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lue big
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WWW.VERITASCLUSTER.COM
3
Calling the cluster community
Read, use, contribute to and be inspired by our new publishing
platform, Shared Views
SHARED
views
Welcome to our special Sofia conference edition of Shared
Views, our shared publication of shared knowledge, inspiration
and ideas.
As organisers, we are not only proud to bring the conference to
Bulgaria and to welcome such a distinguished delegation, but
hope that the event will serve as one more solid brick in the
bridge that links us all in Europe to a shared and prosperous
future.
We have world leading thinkers joining us in Sofia to discuss the
whole range of issues around cluster economics, from theory
and research, right through to concrete examples. We hope that
our new publication also showcases some of these beacons
of best practice and can act to ignite new conversations and
encourage new networks.
Of course, our collection of edited articles is just a taste of what
is to come as the main meetings course in Sofia and we hope it
whets the appetite and helps to build, just a little bit more, that
valuable community we have built around important shared
values.
We are keen to improve on this start and to see if we can build
a community that is in touch 24/7 and 365 days – for those that
want to connect and tap into our font of common knowledge at
any time, not just at annual conference. If you’d like to help us
build this information portal, both on line and in print, do share
your ideas with us in Sofia and beyond.
Most importantly, enjoy the charms of Bulgaria’s capital and
make the most of the rich conference experience. I hope you all
find new inspiration to carry on building a brighter future for all
on the continent!
Teodora Jilkova,
For and on behalf Consulting Cluster Veritas and organising team of
TCI European Conference 2018
Publisher:
Consulting Cluster Veritas Ltd
34, Bogatitsa Street, Office A-01
Sofia, Bulgaria
www.veritascluster.com
Editor: Paul Colston
Art Director: Dimitar Spasov
Graphic Design: Bella Ivanova
Prepress, print and production: New Campaign
Contributors:
James Wilson, Alberto Pezzi, Ifor Ffowcs-Williams, Danka
Sokolovic Milojkovic, Madeline Smith, Emily Wise, Gál
Körmendy, Pavla Bruskova, Vedat Kunt, Evgeniy Kutsenko
European Commission
The European Cluster Collaboration Platform
The Center for Economic Strategy and Competitiveness, in
collaboration with Sofia University
KQuarterly
Business Development & Coordination:
Teodora Jilkova
The copyright to the design and the content of the Shared
Views is owned by Consulting Cluster Veritas. No part of this
publication may be reproduced without the prior permission of
Consulting Cluster Veritas.
All entries have been supplied by the companies listed in the
Shared Views and while great care has been taken to ensure
that the details are correct, neither Consulting Cluster Veritas
nor the production house accepts responsibility for any error,
omission or claims made in the Shared Views or at the TCI
European Conference 2018.
#CLUSTERS #COMPETITIVENESS
#COLLABORATION
#INNOVATION #NETWORKING
#INTERNATIONALISATION
www.tci-europe2018.com
TCIEUROPEAN CONFERENCE
Sofia, Bulgaria20.03 - 22.03
2018
Organiser’s Note

Clusters creating shared value
with localised approach
James Wilson, Research Director at Orkestra, the Basque
Institute of Competitiveness, says there is a big opportunity
for sharing value with a more localised approach involving
smaller firms
TCI Network’s 20th
anniversary publication in
2017 looked to the future of
clusters and cluster policies.
One of the central arguments
was that cluster policy is likely
to be increasingly seen as an
inclusive tool that is capable
of serving a wider policy
agenda, beyond economic
competitiveness.
There is an opportunity
for cluster policy to evolve
to take on more of a social
foundation, in line with
the widening of the focus
of economic development
policy from purely economic
considerations (productivity,
GDP growth) to include
social and environmental
considerations (‘beyond GDP’).
Indeed, being based
on territorially-rooted
collaborative relationships,
clusters are well positioned
to contribute to developing
responses to ‘grand social
challenges’. However, most
practised approaches to
cluster development leave
little explicit space for working
on the broader social impacts
of clusters in their territories.
The notion of ‘creating shared
views’, introduced by Michael
Porter and Mark Kramer a few
years ago, offers an exciting
opportunity. It goes beyond
approaches to corporate social
responsibility by arguing
that the strategy of the firm
can become entwined with
that of the territory where it
operates, generating value that
is shared by both. Until now,
this concept has been applied
mainly in the context of large
multinationals, but there
is growing interest among
policy-makers and cluster
Applying shared value to clusters
Alberto Pezzi, Treasurer & Member of the TCI Network Board
of Directors, gives a taste of the theme he will be developing
at the congress in Sofia
The notion of Shared Value
was introduced by Michael
Porter and Mark Kramer
in 2011 at the edge of the
last economic crisis and
in the middle of a strong
debate towards the future of
capitalism. According to the
authors, shared value refers to
“policies and operating
practices that enhance the
competitiveness of a company
while simultaneously
advancing the economic
and social conditions in the
communities in which it
operates. Shared value creation
focuses on identifying and
expanding the connections
between societal and economic
progress”.
However, while the concept
of shared value has already
been applied to a number of
projects led by multinational
companies, its diffusion
among smaller ones has been
very limited.
Business clusters’ ecosystems
represent an ideal ground for
identifying and implementing
shared value initiatives that
involves different actors of the
cluster value chain. In fact,
collaborative projects that
increase company efficiency
and, at the same time, have a
positive outcome in society or
for the environment are not
uncommon.
Catalonia has 25 years of
experience in using clusters as
practitioners to explore its
relevance in more localised
cluster dynamics among
groups of smaller firms.
Initiatives to explore the
shared value of clusters are
already underway in Catalonia
and the Basque Country, and
at Orkestra we are working
on conceptual and empirical
research to support these
experiments.
The key question we seek to
respond to is ‘how creating
shared value can be leveraged
as a cluster strategy, capable
of bridging across SMEs
and helping to root the
socioeconomic impacts of
clusters in their territories?’
a key tool for reinforcing the
competitiveness of companies,
especially by fostering
strategic change projects
and, lately, by promoting
cross-sectoral collaboration.
A number of projects with a
relevant component of shared
value have already been
carried out. An example is the
creation of a water treatment
plant in a leather-tanning
cluster that, at the same time,
cuts water consumption and
improves competitiveness.
The challenge is therefore how
to conceive and make more
systematic the identification
and implementation of
those initiatives and to how
encourage it from the public
sector.
Policy & Strategy 5SHARED
views
The conference presentation
will also showcase a pilot
initiative currently in progress
in Catalonia.
BSMEPA services and activities: Highlights
The services and activities of the Bulgarian SME Promotion Agency are driven by an overarching
strategic objective: make Bulgaria a country of high living standard based on sustainable economic
development in the context of holistic integration in the European Union with the joined efforts of gov-
ernment and social partners. The Agency performs these tasks through a number of measures aimed
at maintaining sustainable economic growth, increasing the competitiveness of Bulgarian enterprises
and fostering their development, promoting entrepreneurship, supporting advanced and innovative
manufacturing processes, and rolling out public-private partnerships (PPPs).
• Information and consultancy services:
– Guidelines for participation in trade fairs and ex-
hibitions;
– Provision of business informa tion;
– On-demand consultations by our experts.
• Business information:
– Market surveys and analyses powered by the in-
ternational company EUROMONITOR;
– Searching for business partners;
– Information from commercial and trade offices
deployed at Bulgarian embassies.
• Seminars and training courses for SMEs:
– Induction training;
– Awareness seminars;
– Specialised seminars;
– Workshops dedicated to getting SMEs ready for
export business.
• Support for strengthening the export poten-
tial of SMEs:
– National stands at international fairs and ex-
hibitions;
– Trade missions;
– Business delegations;
– Business forums in Bulgaria.
• National Innovation Fund (NIF);
• International conferences in Bulgaria and
abroad.
Contacts:
2-4 Lege Str., Sofia 1000, Bulgaria
email: office@sme.government.bg,
Phone: +359 2 940 79 40
www.sme.government.bg
BULGARIAN SMALL AND MEDIUM ENTERPRISES
PROMOTION AGENCY

Big Interview
Charting a new alignment
Shared Views meets TCI Network president Christian Ketels
What are the key milestones for the
TCI Network?
TCI has increasingly moved
from a network created to
inspire others about the
opportunities of cluster-
based economic development,
to become a place where
experienced practitioners and
organisations can collaborate
on improving their practices
in the field. This has found its
reflection in the way we have
developed our conferences.
It has also been reflected in
the emergence of more recent
activities like the impact
assessment interest group,
the peer evaluations, and the
mentorships, that all leverage
the power of the network to
push better practices forward.
What trends are you seeing
in cluster development both
globally, and in separate
regions?
Every region and cluster is
facing its own issues, and
each of them has to find
organisational approaches
that are appropriate given
their institutional realities and
available individuals.
However, there are some trends
that seem to be more universal:
In terms of what cluster
organisations are
doing, innovation and
internationalisation are two
areas that are getting a lot of
attention. One can add skill
upgrading to these core topics
that have always been on the
agenda.
Where there are developments
is in the way that cluster
organisations operate. Over the
last few years we have seen a
focus on cluster management
excellence, although more
needs to be done, and the
current review of the criteria
used in the European labelling
of cluster organisations is a
good opportunity to test our
thinking.
Another key topic has been
cross-clustering, or more
broadly the focus on enabling
collaboration across industries
that have not traditionally
interacted much. While this
is sometimes viewed as a
departure from a traditional
cluster model, for me it is
more an attempt to retain
the necessary organisational
openness towards ever-
changing patterns of linkages
across industries.
A related issue is the one of
emerging clusters, a concept
that is often poorly defined. Is
it the emergence of existing
cluster categories in new
places, maybe because relative
competitive advantages have
changed?
Or is it the emergence of
new relationships across
industries, driven by new
technologies, market needs,
or business models? The prior
is less prevalent but better
understood. The latter is more
sexy, but a slippery slope
for policy mis-steps when
government tries to guess new
relationships on which the
market has not given its final
verdict.
There are also areas in which
we have not made enough
progress: The key item here
is the failure to use cluster
policies and organisations as
platforms to integrate policies
affecting different dimensions
of competitiveness. While
there is much talk about this
idea, the practice retains
a strong flavour of cluster
programmes as a new policy
silo.
The TCI Network conference
is in Bulgaria for the first time.
What does this signal?
I am glad the TCI Network
is coming to Bulgaria. There
has been a growing interest
in cluster-based economic
development from many
parts of Central and Eastern
Europe. This has been fuelled
by EU-financing schemes
but it reflects a much deeper
recognition that for catch-up
to successfully occur it will
require fundamental changes
within firms and locations that
are not an automatic response
to achieving EU membership,
having access to the Single
Market, or being exposed
to the European regulatory
framework. It takes local
communities and networks
to set their own course and
then leverage the tools and
opportunities of the EU to
achieve them. Here is where
cluster-based efforts have a
lot of promise in providing a
framework to do so effectively.
While this opportunity is very
real and often recognised,
it too often conflicts with
an approach of rolling out
concepts that have proven
useful in Western Europe.
Keeping to one standard for
all has been important for
European integration. But,
increasingly, the effectiveness
of cluster-based and other
economic development
policies depends on aligning
them with a specific local context.
The Smart Specialisation
Strategies have been a step
change in that direction,
pushing regions to define
their own priorities in what
should be done. We also
see a need to align to local
circumstances in how things
are done. Here I hope that the
Sofia conference can provide
inspiration for cluster-based
efforts specifically and help
us explore how they should
be structured, governed, and
supported in a way that meets
institutional realities and
competitiveness needs in the
region.
7
There can
be a slippery
slope for
policy
missteps
when
government
tries to
guess new
relationships
on which the
market has
not given its
final verdict.
SHARED
views
"
"www.euromasterbg.com
The company offers a range of over
6 000 items by different brands,
the most popular of which are
RAIDER and TOPMASTER.
The company is successfully
developing it′s activity
in a lot European
markets.
Created in the year of 2001 the brand Topmaster Professional became a leader in the
hand tools market in Bulgaria for a short period of time. With more than 1,000 items
today, it is well known in many countries.
Topmaster Professional products are characterized with excellent quality, reliability
and innovation in terms of design and functionality.
The quality of the Topmaster Professional brand tools is confirmed by the TUV GS
Certification. All products are protected against defects when used properly.
The brand Raider is a trademark of Euromaster Import Export Ltd., known and established on the Bulgarian market eighteen years ago. The variety
of machines in this brand practically covers the entire range of activities - construction, woodworking, metalworking, auto and gardening tools.
We also offer a full range of relevant accessories, compatible not only with Raider branded machines.
The Raider brand enjoys a dynamic development and gains consumer confidence with it′s correspondance to high quality professional
technology on a reasonable, affordable and competitive price.
www.raider.bg www.topmaster.bg www.metabo.bg

EU strategy
Smart Specialisation in the EU
9
Defining Smart Specialisation
Innovation and new synergies to
create action
Two approaches incorporate
Social Economy into Smart
Specialisation:
EU Strategy
Locally based activities and
economic resilience
Smart Specialisation is a strategy developed in the EU to enable
growth and jobs in European regions, based on the identification
of local competitive advantages and growth markets. Through its
partnership and bottom-up approach, smart specialisation brings
together local authorities, academia, business spheres and the
civil society, working for the implementation of long-term growth
strategies supported by EU funds. Strategic sectors of growth are
therefore identified, for targeted research and investment. Smart
specialisation encourages collaborative work and can result in the
building of clusters.
Smart Specialisation targets diverse sectors, including 3D
printing, medical technology, farming, solar energy, sustainable
buildings, high-tech…and more.
The incorporation of social innovation and Social Economy
enterprises into Smart Specialisation has also an added value
in bringing new methodologies to address the social challenges.
It brings in new ideas, new economic models, and enhances
social capital by incorporating more actors, and emphasising
the importance of democracy and participation of workers, new
business management models, and vocational training.
Social Economy is a concrete application of the Quadruple
Helix approach to Smart Specialisation: it does not only include
enterprises, academics and public authority into the economic
development, but also the civil society.
Furthermore, social innovation has put in place new open and
innovative ecosystems, focused on the co-creation of new tools
and solutions by users, that carries a lot of opportunities for
clusters and regions to thrive. As an example, Living Labs have
spread across the EU and focus on bringing together multiple
stakeholders on a number of topics to find commonly built
solutions. (CF: European Network of Living Labs, events created in
co-operation with public authorities: hackathon …etc.)
Either the regrouping of social economy actors and enterprises
into a common sector. This entails mutualised resources and
means of action in a sector of specialisation such as employment
and inclusion through economic activity, cultural and creative
industries, eco-friendly activities, circular economy…etc. (Such an
approach has been put in place by PTCE in France, or for instance
Cultural Co-operatives in Italy, for the management and promotion
of the cultural heritage).
Or, the direct incorporation of social innovation methodologies
and technical inventions/ tools into the activities of existing
smart specialisation areas and clusters. Multiple examples can be
found on ECCP.
Since 2011, the European Commission has been providing advice
to regional and national authorities on how to develop, and
implement their smart specialisation strategies. Over 120 of them
have been developed under the 2014-2020 Cohesion Policy.
Smart Specialisation is now part of the Horizon2020, as a tool
to strengthen economic resilience and boost economic growth.
A new wave of pilots is to be launched in 2018-2019 specifically
targeting transition regions and encouraging interregional
partnerships.
Social Innovation is a new priority for the Smart Specialisation
strategy and the Horizon2020 agenda, and as such is progressively
being integrated into the programmes, with many opportunities
to assert a strategic place for Social Economy actors. Specific
targeted sectors include: ‘new products and services meeting
social needs’, child care, healthcare, education, environmental
issues…etc.
Smart Specialisation could very much benefit from incorporating
Social Economy into its strategy, as this field mainly focuses its
work on activity sectors that cannot be relocated easily and rely a
lot on human capital (employment).
It can play a key role especially in less developed regions and
regions in industrial transition which require specific attention
with regard to human capital, skills development and inclusive
innovation processes.
The inputs of linking Social Economy &
Smart Specialisation
SHARED
views

11
Lapland and Navarra Other initiatives: specialised
clusters of Social EconomyArctic Smartness – Lapland:
This is a programme to develop the region’s position in exploiting
the Arctic natural resources; while delivering sustainable
development, by the settling of circular economy ecosystems in
rural areas.
Part of the programme for Lapland is dedicated to the organisation
of dynamic and self-sustained rural areas, thanks to the creation
of villages and agro-centres co-owned by local people, farms and
firms specialised in locally based hubs of production of food and
energy.
Further development attached to Social Economy in Lapland
include job creation and work integration, thanks to co-operatives
and other social enterprises employing local people with
handicaps or disadvantaged backgrounds. Social Economy in
Lapland also enables the sustaining and development of rural
areas by providing social services including health and care for
the elderly… etc.
http://luotsi.lappi.fi/c/document_library/get_file?folderId=3807809&name=DLFE-32214.pdf
https://issuu.com/lapinamk/docs/b_16_2017_harju-myllyaho_kohllechne
France: Pôles Territoriaux de Coopération Economique
(PTCE)
PTCE is a grouping of enterprises of the social economy on a
precise territory in order to work in synergies. Local authorities
work with research institutions on the solving of common
territorial issues, through social innovation, mutualised means
and co-operation.
PTCE have been created via the 2014 framework-law on Social
Economy. The difference with other clusters is that those poles
are mainly constituted by actors of the social economy, namely
associations (57%).
On the rural level: PTCE are mostly oriented towards the re-
organisation of sectorial activities thanks to relocation of
production, transformation, distribution, and re-dynamisation of
the branch through innovation, training, and cultural/promotion
work.
Activities are centralised: on eco-activities, reinforcement of
employment and securing professional paths, cultural and
creative industries, sustainable food and agriculture, and services.
Examples of French Clusters:
Urban cluster: Lille-MétroPôle-Solidaire, launched by Lille city
council and managed by the cluster InitiativeetCité. It represents
a regrouping of various organisations into a co-creation/
collaboration working the space.
La Grappe is a consultancy services (financial engineering
commercialisation services) incubator of innovating projects
working on the city’s social and political priorities. It provides
direct gateways with sub-sectors of excellence in the region (new
technologies, media…etc.). http://www.lagrappe.eu/
Rural Cluster: Figeacteurs (Lot - 46) has activities centred on
two main topics: 1. Relocation of agricultural production via the
re-integration of production cycles by diverse social enterprises
(mutualised agricultural grounds for experimentation and
integration of workers; transformation of garden products and
distributing them via a platform), and the distribution and settling
of ‘territorial catering services’; including post-production and
anti-waste initiatives.
2. Energetic Transition: that is local authorities, investing bodies
and energy distributors working to create locally based energy
sources (solar panel, micro hydraulic central, woodtech).
Navarra S3:
A Smart Specialisation and interregional co-operation
(VANGUARD initiative). Part of the programme specialised in the
development of green activities and ecology.
There is a new settling of priorities for 2030, with special concern
for five development themes, including:
• Cohesive Navarra, socially and territorially, as a final objective of
the strategy.
• Healthy Navarra, with healthy products and services, taking care
of people.
• Sustainable Navarra, environmentally responsible and efficient
in the use of resources.
• Industrial & competitive Navarra, increasing productivity with
4.0 technologies. Integrating and boosting people’s talent, and
promoting innovation and entrepreneurship.
In the pursue of this objectives, Navarra has settled a list of
principles that place social cohesion, co-operation and social
economy high on the agenda, and places its activities in fields
where social enterprises are key actors nowadays: creative
industries, comprehensive tourism, environmental management,
food tech (with regards to the circular economy).
http://na.bruselas.site/sites/default/files/fichas-t%C3%A9cnicas/Navarre%20S3_EN.pdf
Examples and good practices
SHARED
views
EU strategy
PARTNERS
HOSTED BY PRESENTED BY
UNEXPECTED
CONNECTIONS
COLLABORATING TO COMPETE
CLUSTERS IN ACTION
COLLABORATING TO COMPETE
CLUSTERS IN ACTION
TORONTOTORONTO21ST
GLOBAL CONFERENCE
OCTOBER 16–18, 2018 | www.TCI2018.org
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GLOBAL CONFERENCE
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TCI 2018 is the leading global clusters
event for government, business, and
academic leaders, to make unexpected
connections for economic growth and
shared prosperity.
For more information and to register, visit: www.tci2018.org
Special Rate $680 CAD (~€440) for
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*Limited quantities available. Coupon code expires May 2, 2018.

WWW.TCI-NETWORK.ORG
TCI Network is the leading global network of main organizations and practitioners
with deep expertise in clusters and competitiveness, who collaborate in a unique
open and flexible context to advance in the practice of competitiveness, innovation
and cluster development.
Members in over 110 countries working
to make their regions and clusters more
competitive.
20 years supporting
cluster practitioners
Through its activities, TCI reaches out to 9,000
practitioners from:
Development agencies
Ministries & government departments
Councils of competitiveness
Cluster regions & networks
Cluster organizations
Academic institutions
Companies
Become a member to:
• Be part of the cluster community worldwide
• Gain access to leading insights
• Enjoy exclusive services
• Gather with your peers during events
• Engage on a regional level and join a TCI working
group
13
NB:
Rural clusters are not only developing economic activities,
but assert themselves as key actors for delivering services for
enterprises’ workers in the territories and re-creating social links.
They, therefore, contribute to counter-balancing the depopulation
dynamics and migration to the cities by providing satisfactory
living conditions for local workers.
In the case of Figeacteurs, at the disposition of their members, they
offer: caretaker services, nursery, provisioning of mobility services
(six electric car rental enterprises), accompaniment of local youth
and project holders into the professional local ecosystem, events
(‘apéro entreprises et territoires’ to connect enterprises and their
territory)…etc.
http://www.figeacteurs.fr/
There are other examples in a variety of sectors, incuding:
- Pole Laine de Saugues: http://www.lelabo-ess.org/IMG/pdf/fiche_descritpive_pole_laine_
de_saugues.pdf
- La Coursive Boutaric (Dijon): http://www.la-coursive.fr/ (specialising in the cultural and
creative industry).
- Domb’Innov: https://www.dombinnov.fr/
Mediterranean: CITEK Action Plan for the integration of
tSocEco into S3
There is not yet a pilot for the CITEK plan, however some of the
participants of the research wish to engage in the development of
Smart Specialisation plans and they say they have the structure to
support it:
http://www.oxalis-scop.fr/
http://www.cnaemiliaromagna.it/chi-siamo.php
Incorporating Social Innovation
into broader Smart Specialisation
topics
A couple of regions referenced on the ECCP (European Cluster
Collaboration Platform) incorporate social innovation and social
economy principles on certain themes of actions for Smart
Specialisation: Healthcare (especially on ‘Silver economy’ and all
themes related to the care for elderly people), Food Tech, but also
creative industries are especially well represented.
Future Position X – Sweden: Specialised on Geo Health (an area of
study of the intersections between health, human well-being and
environment.) The aim is to link actors to create smart cities and
better environmental conditions for all, linking science, public
health and social innovation.
https://fpx.se/
Transylvania Lifestyle – Romania: High tech culture and
entertainment, creative industries at the service of social
cohesion and better living; developing research and innovation,
for the valorisation of traditional creative industries and their use
in sustainable entrepreneurship and use in new sectors of growth.
https://sites.google.com/site/transilvanialifestylecluster/
What can the EU do in favour of Smart
Specialisation in Social Economy?
Recall the development of social innovation approach into the
ECCP work, especially since they respond to regional
development priorities on many subjects.
Encouraging trade and social and economic co-operation to create
poles of innovative research and activity in order to respond to
social needs (a study has been launched on the topic and will be
presented during a conference next July)
European Social Economy Regions 2018: This will see the launch
of a pilot of regional conferences on Social Economy in territories,
with specific themes related to territorial issues and opportunities,
with the will to better connect actors on the field and create
synergies to boost innovation on the local level; (closing date for
applications was 28th February). This can trigger opportunities for
building clusters of Social Economy.
Sources: Réseau DIESIS, Le Labo de l’ESS, CITEK, ECCP, Smart Spé
communications…etc.
SHARED
views
EU strategy

Publication 14
Clusters on the Inside
Stagnating and Dynamic Clusters
Ifor Ffowcs-Williams, CEO, Cluster Navigators Limited, New Zealand, has connected
with 1,000 clusters globally and offers a summary of the contents of his Cluster
Development Handbook
A central aspect of shared value is cluster development.
Strong clustering initiatives upgrade the skills and supplier
base, develop and link supporting institutions, and enable
businesses and communities to grow.
I have connected with over 1,000 clusters globally, some are
stagnating and others are dynamic. Why such differences?
While there is no ‘typical’ cluster, the table below presents
a summary from my Cluster Development Handbook,
contrasting many stagnating, weak (though possibly
embryonic) clusters and more dynamic, innovative clusters.
STAGNATING CLUSTERS DYNAMIC CLUSTERS
1. CORE FIRMS Few, with shallow competencies, stand alone,
vertically integrated.
Footloose anchor firms & branch plants as global
gatekeepers.
Limited differentiation; competition on price.
Many inputs sourced from afar.
Many firms, highly specialised, well
connected to international markets & global
value chains.
Meeting demanding needs.
Strong rivalry based on differentiation.
Many start-ups and departures; high churn
rate.
Out-sourcing.
Businesses reinvesting within the region.
2. SUPPORT FIRMS Few, with generic competencies.
Remote, dysfunctional relationships with core
firms.
Many specialised inputs imported.
Many firms, highly specialised, close
interaction with core firms. Responding to
leading-edge demands.
Savvy accounting, legal and recruitment
firms acting as information conduits.
Specialised local suppliers with new
competencies, new clusters, emerging.
3. SOFT
(KNOWLEDGE)
INFRASTRUCTURE
Only basic needs addressed.
Weak presence of supporting organisations,
remote from the core and support firms.
Universities, vocational training & high schools
detached.
Industry associations with a lobby focus.
A clutter of public agencies and support
organisations, little coordination.
Inflow of students, skilled migrants, new
knowledge.
Well-structured institutions for collaboration.
4. HARD
(PHYSICAL)
INFRASTRUCTURE
Multi purpose, multi-sectoral industry parks and
incubators.
Cluster-specific technology parks &
incubators. Shared common user facilities.
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Publication 15
Contrasting Cultures
Cluster Decline Elements
STAGNATING CLUSTERS DYNAMIC CLUSTERS
Firms and support organisations not socially close.
Few personal networks.
Low trust environment.
Not well connected with soft infrastructure.
Isolation. Rigid.
Low investment in new products, technologies, training.
Extractive institutions.
Paralysis-by-analysis.
Based in the region.
High trust, open innovation environment, outward orientated.
Dense inter-firm relations, multiplicity of personal connections,
interactions, reciprocity. A co-opetition culture.
Many strong ties, and even more weak ties.
Places for chance encounters, informal conversations.
Information spillovers, circulation of tacit knowledge.
Core firms acting as magnets, attracting allies, rivals & specialised
support firms.
Continual spawning of new firms, breakaways from academia and
anchor firms; talent, student & FDI inflows.
Reinvestment within the cluster.
Continual adjustment, experimentation. Dynamic systems, at
times chaotic. Firm strategy continually evolving.
Inclusive institutions in place, including a self-help cluster
organisation.
Learning-by-doing.
Part of the region.
RIGIDITY
LIMITED RENEWAL
COMPETITIVE POSITION
ERODED
Fossilising, lock-in to old specialisations, business practices, technologies, declining
markets, exhaustion of raw materials.
Innovation & productivity improvements weakened by inflexibilities.
Unable to respond as new centres emerge with lower cost structures, as radical
technologies develop.
Development of cartels and mergers that reduce local rivalry.
Public agencies view investment attraction as the priority. Or the physical
infrastructure, e.g. another ‘Technology Park’.
Reputation decline, no longer the Go-To place.
ISOLATION WITHIN THE
CLUSTER
Limited dialogue, little trust across the cluster, isolated businesses, few chance
encounters. Rivalry centred on price, not differentiation.
Privileged tacit information available only to the ‘Old boy’s club’.
Dysfunctional public support, not aligned around priorities. Public agencies inside their
silos, drip-feeding support. Conflicting private sector signals.
Universities & public R&D remote.
No deliberate actions to collaboratively engage … no common user facilities, no
institutions for collaboration, no cluster organisation.
ISOLATION BEYOND THE
CLUSTER
Not connected to other clusters, isolated from knowledge hubs.
Self-contained entity, all other clusters are competitors.
Poor connections with international customers.
STATIC GROUP OF FIRMS Dominance of a few, vertically integrated anchor firms; little regional outsourcing/
subcontracting.
Start-ups not pushing the existing firms to innovate. Few new companies, few spin-offs.
Less diversity.
Exit of MNCs and anchor firms.
Inability to attract fresh talent.
CONGESTION EFFECTS Higher cost of land, skills outweighing agglomeration benefits.
Transport inefficiencies.
CHANGE AVOIDANCE Maintaining the status quo, not going through the pain of change.
No urgency. Failure to adjust to external shocks.
Successful lobbying ensuring status quo.
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ECCP – The EU Platform Connecting Clusters
The European Cluster Collaboration Platform (ECCP) is an
action of the Cluster Internationalisation Programme for SMEs
funded under COSME* launched by DG GROW** of the European
Commission in 2016.
The ECCP provides networking and information support
for clusters and their members aiming to improve their
performance and increase their competitiveness through trans-
national and international co-operation. The services include:
• a dynamic mapping of around 800 profiled cluster
organisations mainly from the EU and increasingly worldwide
• the largest information hub for clusters offering latest news/
events/open calls to a broad community, with 5,000 subscribers
to its Weekly Digest
• matchmaking events supporting the development of co-
operation between clusters in Europe and beyond
• a unique database on regional, national, international and
sectoral cluster networks
• detailed information on the European Strategic Cluster
Partnerships
• a ‘partner search’ facility, where cluster organisations can
exchange their offers and demands
• dedicated pages supporting international co-operation
including profiles of selected countries of strategic interest and
related European international support services
• a unique database of profiled cluster-related projects developed
under various European programmes.
The ECCP addresses primarily the needs of cluster
managements, but its rich content is useful for both the SME
cluster members and for the cluster policy makers at regional,
national or international level.
These following key indicators illustrates how the platform has
become the hub for international cluster collaboration since
March 2016:
• 8,000 monthly visitors to the website
• Over 1,330 news items published and 700 events promoted
• 34 testimonials (including videos) published
• 131 calls for proposals highlighted
• 40 cluster associations and networks featured
• More than 70 EU-funded cluster projects profiled
As ‘home’ for the European Strategic Cluster Partnerships -
Going International (ESCP-4i), the ECCP hosts 15 partnerships
funded under the COSME programme from 2016-2017 and,
recently, 23 new partnerships were launched for 2018-2019.
The platform’s matchmaking events have proved popular with
the cluster community. By September 2017, 10 such events
were organised, bringing 300 participants from 28 European
countries to meet 140 participants from seven non-European
countries in a total of 2,180 bilateral meetings.
For more information visit: www.clustercollaboration.eu Follow
us on Twitter @Clusters_EU and on LinkedIn.
* COSME is the EU Programme for the COmpetitiveness of enterprises and Small and Medium-
sized Enterprises and offers grants for European defence clusters co-operating in international
partnerships.
** European Commission DG Internal Market, Industry, Entrepreneurship and SMEs (DG GROW)
With a dynamic mapping of around 800 profiled cluster organisations (mainly from the
EU and increasingly worldwide) ECCP is the largest information hub for clusters.
ECCP 17
CLUSTER ORGANISATIONS
MAPPING
The easiest way to find a cluster
organisation in Europe
The innovative mapping offers:
• hundreds of cluster organisation profiles
• a large selection of filters (industry
sectors, countries ...)
• a smart correlation with the indicators of
the European Cluster Observatory
MATCHMAKING EVENTS
Opportunities to connect and
initiate collaboration in high level
events in Europe and beyond
Cluster matchmaking meetings (C2C, C2B)
stimulating cooperation for clusters and
SMEs through:
• interactive and innovative formats
• professional support
• dedicated financial support to
participate in events
INTERNATIONAL
COOPERATION
Cooperation with strategic countries
beyond Europe
Key information sources helping clusters and
SMEs internationalise:
• information on priority third countries
• “gateways” to EU international support
services
PARTNER SEARCH
A forum for cluster organisations
to discuss offer/demand/exchange
opportunities for collaboration
A virtual, quick and efficient dedicated
“marketplace” to:
• find and be found
• trigger direct dialogue with other clusters
• interact with peers in a structured way
EU CLUSTER PARTNERSHIPS
Implementing joint strategies
to go international and specialise
ECCP is the HOME of the newly established
European Strategic Cluster Partnerships
(ESCPs) offering:
• profile and visibility for ESCPs
• a reserved forum for exchange and
collaboration
• an opportunity to showcase partnership
activities and success stories
The European Cluster Collaboration Platform
A Vibrant Platform for Cluster Organisations
WWW.CLUSTERCOLLABORATION.EU
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For more information:
office@abclusters.org
www.abclusters.org
+359 879 830 492

Policy Strategy 19
How to transform an Ugly Duckling
Dr Danka Sokolovic Milojkovic, Director of the Cluster House,
Serbia explores the question of whether Balkan clusters can
contribute to a regional transformation
At the Strategic Forum in
Slovenia in September last
year a High Representative of
the Union for Foreign Affairs
and Security Policy H.E. Mrs.
Federica Mogherini said: “The
Balkans is already in Europe
i.e. it is in the heart of Europe
and the Balkan nations want
and deserve to have the same
chance, the same security and
the same rights as all other
citizens on the same European
continent”.
Starting from the impacts of
the Cluster House Model for
cluster development in the
Balkans, the Cluster House, a
developer and a coordinator
of the biggest cluster
collaboration network in the
Balkan and Black Sea Region
named ‘BBS ClusNet’, knows
that the Balkan Clusters are
powerful tools for both the
social economic development
in the Balkans and European
and globally integration
process of the Balkans.
The cluster-based economic
development has been
recognised in the Balkans
as a tool for achievement of
the greater entrepreneurial
initiative, innovativeness,
competitiveness, employment,
SME trade collaboration,
investment promotion and
internationalisation, but
still there is a lack of Balkan
Cluster Policy and the Balkan
Clusters are in viewed in their
own region as something of an
Ugly Duckling.
The Cluster House Balkan
Black Sea Cluster Network
gathered in Thessaloniki in
September 2017 to discuss
the values of the market
economy and European society
within the framework of the
10th ECCP Greece Cluster
Matchmaking Mission, and
‘‘SMEs play an essential role in developing the market
economy where there are only a few big successful
companies present and where the former large socially-
owned enterprises are slowly disappearing’’
declared their commitment to
the issue of The Smart Balkan
Cluster Policy. (https://www.
clustercollaboration.eu/sites/
default/files/event_calendar/
the_smart_balkan_cluster_
house_policy_declaration.pdf).
The issue was jointly
addressed together with the
EU cluster-based economic
development institutions with
the aim of basing work on
the European cluster policy
for growth, to maximise the
cluster concept capitalisation
in the Balkan countries with
transitional economies,
and support the European
integration process of the
Balkans.
The Balkan region includes
11 countries: Albania, Bosnia
and Herzegovina, Bulgaria,
Croatia, Greece, Macedonia,
Montenegro, Romania, Serbia,
Slovenia and Turkey, with over
65m citizens and embraces
the major cities of Athens,
Istanbul, Sofia and Belgrade, to
name just four.
Neighbouring countries
Austria, Cyprus, Hungary, Italy,
and Russia have played an
important role in the Balkan’s
geopolitics, culture and history.
The region is recognised for its
agriculture, fruit production,
farming and fishery; forestry,
mining and industry sectors.
The Balkans have an ethnic
and cultural variety, and a
turbulent history has resulted
in the majority of the countries
being in the state of transition
reconstruction.
In transitioning Balkan
countries, SMEs play an
essential role in developing
the market economy where
there are only a few big
successful companies present
and where the former large
socially-owned enterprises
are slowly disappearing. SMEs
are therefore considered the
prime movers in creating new
jobs and ensuring significant
impulses for the economy.
Additionally, SMEs play an
important role in reducing
poverty and integrating
vulnerable groups such as
refugees, internally displaced
persons and others.
A survey on identification of
the main drivers of the cluster
based SMEs development used
SWOT analysis, questionnaires,
individual interviews with
cluster actors, business leaders
and cluster based economic
development experts.
Representatives from 56
members of the BBS ClusNet,
under the coordination of
the Cluster House Project
and Research Unit, were
interviewed.
The research findings showed
that SMEs in transitioning
Balkan countries are in the
process of learning benefits
from membership in clusters.
The biggest benefit cluster
based optimisation of SMEs’
development strategy lies in
increasing innovation and
competitiveness, quality
management standard
implementation, and in
improving a company’s brand
image, as well as promoting
energy efficiency and
environmental protection.
The largest obstacle is a
lack of employees’ trust and
motivation to behave in a new
way.
Big changes are often started
with smaller modifications
on a local scale but there are
evident problems, such as
a lack of leadership skills,
entrepreneurial culture and
strategic management and
planning.
The need to develop a
systematic approach to the
development of clusters in
the Balkan and Black Sea
countries is of immense
importance because they
are one of the most efficient
instruments in supporting the
SMEs’ sector development,
contributing to better
information exchange,
networking, promotion,
capacity building and trade
and investment collaboration.
One of the crucial challenges
in the business environment
in the Balkan region when
promoting the concept of the
SMEs’ development is a mental
barrier among politicians,
civil servants and local
population, and their lack of
understanding or motivation.
Business membership
organisations in general
are also rather weak and
restrictive experience in
social dialogue and dialogue
with local authorities also
represents a challenge.
There is also a lack of capital
resources and limited access
to bank funds for developing
SMEs.
A particular problem for SMEs
is the absence of long-term
credit benefits. The concept of
industrial cluster development
has great importance to the
SME sector as a support in
obtaining credit benefits.
The Cluster House believes
that, just as Hans Christian
Andersen’s Ugly Duckling
matured into a beautiful swan,
the Balkan clusters supported
(or not) by the European and
global cluster community
will finally get an equal place
between the social economic
development actors in the
region.
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Matchmaking
Study tours
Peer reviews
Staff exchange
Mentoring
We collaborate with the
world’s leading experts
and clusters
We promote active learning
and matchmaking among
its members
We forge connections
and build action-driven
groups of expertise
We gather and
disseminate
world-class,
practice-based
knowledge
We team up with
cities,regions and
organizations
International contacts to
enrich business networks
Pool of experts and speakers
Global regional
conferences
Thematic events
TCI’s cluster resources
Cluster Initiative Database
Why clusters matter series
Academic articles
Regional initiatives:
Latin America, Oceania, Asia
Cluster evaluation working
group
Benefits for members
What do we do for our members? Project 21
Probiotics with a Harvard flavour
The Center for Economic
Strategy and Competitiveness,
in collaboration with Sofia
University, organises an
economic development
course, Microeconomics of
Competitiveness (MOC) and since
it was started 10 years ago more
than 500 students have joined the
programme.
MOC is a series of lectures, in
which participants discuss real-
life cases in the area of economic
growth and development.
The lectures are conducted
by Bulgarians who studied at
Harvard University and the
training materials are based on
business cases developed and
used in the class of professor
Michael E. Porter at Harvard
Business School.
As part of the programme, the
students are grouped in teams
to analyse a specific cluster
in Bulgaria and formulate
recommendations for its future
development.
One of the projects this year was
focused on the Probiotics cluster
in Bulgaria.
According to the World Health
Organisation, probiotics are
“live microorganisms which,
when administered in adequate
amounts, confer a health benefit
on the host”.
Elie Metchnikoff, who was
deputy director at the Pasteur
Institute laboratory in Paris
and a Nobel Prize winner, is
regarded as the grandfather of
modern probiotics. He made a
landmark observation that the
regular consumption of lactic
acid bacteria in fermented dairy
products, such as yogurt, was
associated with enhanced health
and longevity. He linked this to
the ‘Bulgarian bacillus’ which
was discovered by the Bulgarian
physician Stamen Grigorov in
the Pasteur Institute.
The market for probiotics is
growing steadily globally. Asia
Pacific is expected to witness
the highest growth of 7.7% over
the next eight years. An increase
in sales may also be expected
in areas with poorly developed
market for probiotics and
functional foods such as Eastern
Europe.
A major part of the market share
is held by just a few companies.
Now a paper has been produced
analysing the Probiotic Cluster
value chain in Bulgaria.
Applying the diamond model
and the five competitive forces
mode, the study formulated the
following recommendations for
the future development of the
cluster:
1. More work on improving the
collaboration between businesses
and scientists and companies in
the cluster.
2. Intensive investments in
RD, especially in the field
of functional foods and bio
preservation and to create a
B2B innovation for the big food
companies, while selling them
the idea as improvement on their
products.
3. Work with Bulgarian probiotic
bacteria and focus on their patent
protection.
4. Focus marketing strategies on
female consumers and online
sales.
5. Focus on business plans, based
on cross-field innovations and
new products and start thinking
about acquisitions, mergers,
expansions or joint ventures
as strategies to sustain in the
Bulgarian market and to reach the
global probiotic market.
Project co-funded by European Union funds (ERDF, IPA)
The transition of a fossil-based to a bio-based industry addresses some of the main challenges
identiﬁed in the Danube region. The development of new bio-based value chains from primary
production to consumer markets needs to be done by connecting enterprises from different
regions and industries. But due to a missing holistic transnational approach Danube actors in
the bio-based industry still operate disconnected and cannot properly beneﬁt from the huge
potential.
Clusters as the representatives of many enterprises are chosen
to organise the industry cooperations and creation of new value
chains, because they are sustainable partners and guarantee the
upgradeability in the dimension industry, sciences and politics.
One of the planned outputs of this project will be the develop-
ment of a Joint Bio-based Industry Cluster Policy Strategy.
DANUBIOVALNET stands for:
• DEVELOPMENT OF A JOINT BIO-BASED INDUSTRY CLUSTER POLICY STRATEGY
• CLUSTERS CONNECTING ENTERPRISES TRANSNATIONALLY
• NEW BIO-BASED VALUE CHAINS IN THE DANUBE REGION
• ECO-INNOVATIONS FOR SUPPORTING THE REGIONAL DEVELOPMENT
Contact: BIOPRO Baden-Württemberg GmbH, Dr. Dominik Patzelt, Tel: +49 711 218185-45, E-Mail: patzelt@bio-pro.de
www.interreg-danube.eu/danubiovalnet; www.twitter.com/danu_bioval
“Cross-clustering partnership for boosting
eco-innovation by developing a joint
bio-based value-added network
for the Danube Region”
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Evaluation 23
Cluster evaluation: Learning to complete
the virtuous circle!
By Madeline Smith, James Wilson and Emily Wise of the Clusters Evaluation
Working Group
Evaluation is a fantastic opportunity to learn from cluster efforts
– to find out what is working and understand why.
Too often evaluation lessons are not taken back into new
programme development. It is important to explore how to close
that virtuous circle and continually improve policy and practice.
The TCI network, working in the fields of competitiveness,
innovation and clusters, has frequently wrestled with the issues
of cluster evaluation. After many years of discussing these
challenges on a more ad hoc basis, a decision was taken in 2012
to establish a Cluster Evaluation Working Group. This brought
together academics, policymakers and cluster practitioners
from around the world to collectively address this topic in a
series of structured sharing and development activities. Since
then, five workshops have been organised (in Scotland, Northern
Ireland, Poland, Spain and Norway), each bringing together 20-
40 international participants from practitioners, academia and
policy.
A further five specific sessions have been held each year at
the annual global conference of the TCI network. The regular
nature of these activities and the continuity of a proportion of
the people involved have facilitated a progressive process of
identification and exploration of cluster evaluation challenges
that has integrated theoretical and practical considerations. It
has resulted in the development and validation of an evaluation
framework based on the notion of what one would expect to
find in the ‘perfect cluster’, as well as a specific question bank to
promote future comparative analysis.
Another key output has been the development of seven
Principles to Guide Cluster Evaluation – aiming to prompt the
right reflections for those undertaking this challenging task.
1. Evaluation for change
Evaluation is about learning,
not just audit (although
demonstrating ROI is important).
It is important to ask ourselves
how the information will be used
to change what we do and how
we do it, and to review if we are
doing the right (most relevant)
things. Evaluation should be a
process of continuous learning
that feeds the policy process; not
just a one-off analysis following
an intervention.
2. Who is interested? Who is
listening? Who should we talk
to? How?
It is important to think about
different audiences (and
potentially involve them in the
evaluation design). Consider who
is best placed to do the evaluation
– cluster manager, independent
reviewer, government agency –
and ask what is most relevant
for different audiences. Tips
for reaching these different
audiences include telling
stories as well as facts, tailoring
appropriate communication to
the level of analysis (project,
organisation, programme,
system), and presenting things
visually to show progress and
change.
3.Understanding the context
Clusters demonstrate different
evidence at different stages of
development. It is important
to know what to look for and
to understand that things take
time to mature. Understanding
the context also implies
understanding the external
environment in which clusters
operate and their interactions
with other actors and with other
policy programmes.
4. What should we measure?
Evidence should be captured
against:
• The ‘why’: Growth and change in
regional economic structures.
• The ‘what’: Specific cluster
interventions (e.g. access to
finance, skills, infrastructure,
knowledge and innovation,
markets).
• The ‘how’: Development of
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social capital and collaborative
behaviour.
It is important to link to
objectives (have we done what we
set out to do?), to focus not just on
activity but also on results and
impact, and to consider the wider
social impacts of clusters ‘beyond
GDP’.
5. When should we measure?
Clusters and cluster policies
work on very long timeframes.
Evaluation should appreciate
that desired impacts may only
emerge in the long term, but look
to capture short term ‘hits’ along
the way.
6. Social capital and trust is the
foundation of cluster working
It is critical to find ways to show
progress and change in the
softer – human – elements of
trust, motivation, satisfaction
and behaviour change that are
the foundation of clusters. Such
changes should be linked to
more tangible results (e.g. has
the collaboration led to new/
different services, attracted
new customers, led to new
partnerships etc.?). It is possible
to collect ‘hard data’ on ‘soft
issues’, but innovative proxies
and more qualitative approaches
will also be important.
7. Be aware of the challenges
and innovate to overcome them
Causality is difficult to prove
and control groups are hard to
find. Consider showing progress
against baselines and mixed
methods and a ‘basket’ of
evidence to demonstrate change.
Cluster evaluators are using
these principles to inform and
shape their approaches. The
TCI Working Group continues to
share experiences, generate new
collective knowledge, and develop
usable tools and structures.
The work of the group is aiming to
address the lack of standardised
approaches, and to capture and
communicate this learning
to inform future policy and to
improve the evidence of the value
created from clustering.
Madeline Smith, who is Head of Strategy Innovation School,
The Glasgow School of Art, speaks at the TCI Conference on
Day 2 http://www.tci-europe2018.com/Day_2_programme),
Parallel Session Block II – Cluster Practice – topic ‘Evaluation
of Cluster Efforts’
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24 Case studiesSnapshots from TCI Network events 25
Hungary’s Alliance of cluster science
Gál Körmendy, president of IKOSZ Hungarian National Alliance of Innovative Clusters,
explains the fast evolution of Hungary’s key cluster Alliance
The historically diverse
Hungarian cluster scene
includes organisations ranging
from 12 to 120 members,
all with wildly different
business models and scopes of
influence.
IKOSZ Hungarian National
Alliance of Innovative Clusters
started off as a sudden idea at
the end of a conference and
met with an overwhelming
response.
After years of independent
development some of the
most active clusters around
Austrian Mechatronics
A five-step scalable approach in Upper Austria for a successful
megatrend implementation both in regions and in companies
Upper Austria is a strongly
industry-based region with a
long tradition in clustering.
One of the key activities of the
cluster management in the
region is the identification and
tailor-made implementation
of megatrends to make it
competitive in the long run.
For that purpose, the
Mechatronics cluster follows
an approach as follows:
1. Trace research
First experts were invited
‘If you’ll believe in me, I’ll believe in you’
(The Unicorn in Lewis Carroll’s Through the Looking Glass)
the country realised the
need for a stable platform for
sharing knowledge, providing
joint representation, and
stockpiling trust. In 2014 they
decided an Alliance would be
a collaborative and flexible
solution.
Today IKOSZ is an integral
part of the European cluster
network, and represents
almost all regions of the
country. It provides extra
visibility to its members
operating around the country
in the key sectors of ICT,
sustainability, energetics,
automotive, wood and
furniture, packaging, CCI and
health.
It offers consultation on cluster
development and excellence,
support with cluster
internationalisation, and
coordination of inter-cluster
innovation ideas.
National Cluster Days and
the shorter, more focused,
Cluster Chats are both regular
events organised with the
support of the Alliance as well,
providing venues for in-depth
professional discussion among
as speakers at a conference
highlighting possible
megatrends and their
reflection in research.
2. Make yourself a forerunner
Based on that event, the
Mechatronics Cluster
developed internal expertise
to become a forerunner in
that specific topic (Advanced
Manufacturing). The cluster
used research literature, study
trips and so on.
3. Integrate the environment
Next, the Mechatronics Cluster
evaluated the status quo of
knowledge of their partner
companies on that specific
issue by means of a survey.
Parallel to that lobbying was
carried out to get the most
relevant stakeholders of Upper
Austria on board to create
awareness and support.
4. Support the willing and
make them role models
Derived from the stakeholders’
and companies’ feedback,
the Mechatronics Cluster
developed a set of tailor-
made services – supported
by specifically developed
funding schemes – to get
the companies Advanced
Manufacturing (AVM) ready.
Next, these services were
implemented and tested on a
company level. The ‘willing’
were supported to become
the AVM forerunners and to
generate lighthouse tower
approaches respectively.
5. Make the progress
measureable and standardised
To create early adopters
to implement our services
offered, the Mechatronics
Cluster made the services
measurable and comparable,
no matter if these services are
implemented in Upper Austria,
the Netherlands or elsewhere
globally.
The approach highlighted
above focuses on the
implementation of a
megatrend in Upper Austria
but is easily applicable to
individual company level as
well.
cluster managers and even
cluster members.
IKOSZ keenly participates in
international co-operation,
both as an expert and as a
partner.
Responding to the demands
of the membership the
most interesting themes
have been competence
development, excellence, and
internationalisation.
1. Trace research
2. Make yourself a forerunner
3. Integrate the environment
4. Support the willing and make them role models
5. Maketheprogressmeasureableandstandardised
SHARED
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Case studies 27
Clusters paving the way to bioeconomy
in the Danube Region
Pavla Bruskova, President of the Czech National Cluster
Association, highlights an example of transnational
cross-clustering
Clusters are vehicles of
competitiveness based
on collaboration and
innovation, guaranteeing the
upgradeability of industry,
sciences and politics in
favour of the sustainable
development of our society.
Being the representatives of
many enterprises in specific
industries, RD and other
competence bodies, clusters
are a powerful tool for
pioneering new paths through
value chains and whole
sectors. One such sector is
bioeconomy.
The gradual replacement
of fossil resources by the
bio-based ones holds great
potential for Europe. It can
Russian Cluster Observatory RCO at a glance
A short outline of the work of The Russian Cluster Observatory
(RCO), founded in 2012 as a part of the Institute for Statistical
StudiesandEconomicsofKnowledge(ISSEK)atMoscow’sNational
Research University Higher School of Economics (HSE).
RCO actively participates in
governmental cluster-related
efforts. The Observatory
provides methodological
assistance and expertise to
Russia’s Federal Ministry of
Economic Development which
is in charge of two large-
scale national programmes to
support innovative clusters:
pilot and leading-edge.
There are 27 pilot innovative
clusters in 28 Russian regions.
They were selected for total
subsidies worth more than
€90m in 2013-2015. Twelve
Russian regions host 12
innovative clusters, which were
assigned the status of global
investment attractiveness
leaders in 2016-2017.
both reduce the climate
change threads, create
economic growth and jobs in
rural, coastal and industrial
areas, and improve the
economic and environmental
sustainability of primary
production and processing
industries.
The DanuBioValNet project
targeted clusters and their
SMEs in the Danube Region
countries to diversify the
bioeconomy sector through
transnational cross-clustering.
Thus, the project’s full name
is the ‘Cross-clustering
partnership for boosting eco-
innovation by developing a
joint bio-based value-added
network for the Danube
Region’.
Fourteen financial and two
associated partners from
10 Danube countries have
joined forces to map the
terrain in three bio-based
value chains: phytopharmacy,
eco-construction and bio-
based packaging, newly
extended with a hemp cluster
initiative. As a result, the
identification of gaps in the
value chains follows, as well
as the interconnecting of the
business actors, academia and
policymakers. This will open
opportunities for the biobased
industries’ development and
facilitated a Joint Strategy for
Bio-based Industry Cluster
Policy.
The main goal and specific
objective of DanuBioValNet is
to facilitate eco-innovations
in the bio-based industry
by improving framework
conditions and making better
use of clusters, potential
and diversity of the Danube
Region. It is a project co-
funded by European Union
funds (ERDF, IPA) and the
project duration is from
January 2017 to June 2019.
Since 2014, RCO has been
involved in performance
evaluation analysis of
innovative clusters,
engineering centres and
technological platforms, and in
drafting the recommendations
for their development.
Since 2015, RCO has also been
engaged in the development of
a legal framework regulating
the launch and activity of
industrial clusters, supported
by the Federal Ministry of
Industry and Trade. There are
22 industrial clusters in 20
Russian regions.
One key RCO project is
producing an annual
Russian Regional Innovation
Ranking, which provides
individual regional profiles
and a complex overview of
innovation processes based on
a multistage evaluation system.
RCO also hosts Cluster Map
of Russia (https://map.cluster.
hse.ru/), which is a national
online, free and user-friendly
platform that gathers up-
to-date information about
clusters and their members,
specialisation, management,
products and services, co-
operation proposals, strategic
documents and contacts. More
than 110 clusters are registered
on the Map.
Further information on
federal cluster policy, support
• Leading cluster-specific
research and consulting
centre
• Comprehensive expertise
in cluster excellence,
regional studies, innovation
and industry-related policy
design
• A range of services from
legal acts drafting to cluster
management training,
and from policy-makers
consulting to cluster
evaluation
• Single access point to
data on clusters and cluster
organisations throughout
the country – Cluster Map of
Russia
• TCI Network member.
SHARED
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measures and new research is
available at http://cluster.hse.ru/
Sofia Tech Park JDC is a Bul-
garian state-owned com-
pany, which main task is to
workonthesettingupofthe
first Science and Technol-
ogy Park in Bulgaria and to
support the development of
the country´s research, in-
novative and technological
potential. The goal of the
park is to create a sustain-
able environment where
the business, the science
and the education achieve
synergy that will lead to the
creation of new processes,
services or goodsto com-
pete on the national and
the global markets.
The Science and Technol-
ogy Park was inaugurated in
December 2015 and it has
gradually begun to establish
itself as a place that supports
entrepreneurship, develops
scientific potential and cre-
ates new scientific achieve-
ments as well as a place that
presents high-tech solutions
and ideas. Priority focal areas
are Information and Commu-
nication Technologies, Life
Sciences, Green Energy.
The infrastructure consists of
a Business Incubator, a Labo-
ratory Complex, an Innova-
tion Forum „John Atanasov”,
a Museum / Experimen-
tarium, a sports facility and
well-developed green areas
and functional park envi-
ronment.
The Incubator offers of-
fice space for start-ups that
develop innovative prod-
ucts in the three priority
focal areas of the Science
and Technology Park. Part
of the area is intended for:
mature companies, from
which the start-ups may
draw on knowledge and ex-
perience; funds that invest
in young companies; en-
trepreneurial organizations
that support the develop-
ment of the innovation eco-
system in Bulgaria. Already
25 companies and organiza-
tions, including 19 startups,
work and develop innova-
tive ideas at Sofia Tech Park.
Members of the Incubator
are companies that develop
IT services, software innova-
tions in livestock-breeding,
in security area, create new
products, and develop new
materials. Their partners are
well-established organiza-
tions such as the clean tech-
nology network Cleantech,
Microsoft Innovation Center,
the Accelerator Eleven, the
Investor-oriented network
Tech Tour, Junior Achieve-
ment Bulgaria. The start-up
companies will also have ac-
cess to services that will sup-
port their development.
The Science and Technol-
ogy Park will also provideac-
cess to the latest scientific
excellences to the start-ups
and to the mature business
through the Laboratory
Complex, in which there are
11 built and equipped high-
tech and modern laboratory
units. The Laboratory Com-
plex is created and functions
thanks to the partnership of
the SofiaTech Park with lead-
ing Bulgarian scientists from
the Bulgarian Academy of
Sciences, the Sofia Universi-
ty „St. KlimentOhridski”, the
Technical University - Sofia.
The Laboratories specialize
in biopharmaceuticals, bio-
informatics, 3D prototyping,
high-performance comput-
ing technology, virtual re-
ality, intelligent communi-
cation systems and other
scientific areas.
The Innovation Forum
„John Atanasov” is a place
for meetings and for host-
ing of various events that
promote the dialogue be-
tween the scientific and the
business community. Only
a year of operation, the Fo-
rum has become a preferred
venue for organizing confer-
ences, forums, exhibitions
and other events on national
and international level. In
2017 more than 60 events
with over 45000 visitors took
place in the Forum’s halls.
The Experimentarium is
intended for a museum of
the innovation and the high
technology.The topics of the
future exhibitions will target
at visitors of all ages. Special
attention will be paid to the
children and it is planned to
have a separate exhibition
for them through which the
children may explore the
world of science and tech-
nology in entertaining and
interesting way. The chil-
dren will be able to see and
interact with interactive ex-
hibits or to join a workshop,
lecture, and demonstration.
The Experimentarium is also
a place for forums, confer-
ences, exhibitions and other
events.
Sofia Tech Park -
the home for innovations
Location – Sofia, 111 Tsarigradskoshose Blvd., www. sofiatech.bg

BETTER HALF – A BOUTIQUE WINERY
The winery is based in in a village called ‘Zmeevo’,
7 km from Stara Zagora. It owns approximately 1000
decares (247 acres) of vinyards in the villages of
‘Zmeevo’ and ‘Dulboki’. The winery is an innovative
and creative boutique which has focused only on
various projects with interesting grape varieties.
We concentrate on quality vs quantity and the
pursuit of excellency with a twist. Garage wine is
relatively unknown in the world and in Bulgaria. We
work extensively with amphora wines. Quantities are
small. The wine is made in tiny vats, the biggest one
is 1,000L. We also have clay vats from Florence and
Georgia. Some of our wines are buried, some are out
in the open.
We do not have a wine which is produced in bigger
volume than 2,500 bottles. Currently our range
consists of 8 wines: 3 reds and 6 whites rose. One
of our current new projects is a red garage blend of
Syrah, Malbec and Regent grape varieties. Under the
2015 Single Vineyard Better Half label, it proves to
be an exciting project to rediscover authentic artisan
methods of winemaking. We bottle the same wine in
two different mediums, one in a new day stainless
steel vat and one in a clay vat. The results are beyond
anything imagined, two completely different wines.
Food for shared value thought
in Montenegro
Vedat Kunt, UNIDO International Cluster Development and Marketing
Expert, offers some insights on shared values in Montenegro agri food clusters
‘‘Acollectivebrand‘42o
N19o
E’belongstothe
region, to the local growers and producers’’
Montenegro’s economy mainly relies on agri-food businesses and tourism, as the country is a small
country on the Western Balkans with limited financial, human and technological resources and industrial
capacity.
However, with diverse natural resources like forests, lakes, mountains, rivers and the beautiful Adriatic
coast, as well as a rich history and culture, Montenegro is a rising star as a touristic destination.
Between 2014-2016 UNIDO implemented a cluster development project in Montenegro in the wine, olive oil
and fresh water fish sectors.
Although at the outset the cluster development work concentrated on each sector separately, the potential
was very quickly realised that these clusters hold together for niche marketing.
The first great idea emerged from the olive oil cluster. Montenegro is home to more than 10,000 old olive
trees, which are believed to be more than a thousand years old. After a scientific study with the University
of İstanbul Faculty of Forestry, 50 pilot trees’ ages were identified. These trees were labelled and
certified. The oldest two were found to be aged 2,240 and 2,056 years, respectively.
A special website was created (http://oliveoilmontenegro.me) and info-panels
prepared for each tree, walking and biking paths prepared for tourists, and, most
importantly, a collective brand ‘42oN 19oE’ (Montenegro’s geographic location)
was established to extract the unique olive oil from these special old trees’
olives. The brand belongs to the region, to the local growers and producers.
The trees and produce belong to the individual farmers but they work
together to market this precious unique joint brand at the best possible
way. They share the value, and this helps them co-operate and all their
efforts help the region to position itself and its products at a more
prominent place.
A second idea emerged immediately after; to incorporate all three
products, wine, olive oil and fresh water fish, under one umbrella brand:
‘Delicious Montenegro’ (http://deliciousmontenegro.me). The concept
helps all three cluster members to work closely for their mutual benefits
and again share the value, which is the ‘culinary experience’ for any
tourist who visits Montenegro, while promoting a distinctive local identity
and marketable destination image to outsiders.
One practical advantage of the Delicious Montenegro brand is that the number
of products under the umbrella can be extended, with new products like cheese,
honey, ham, mushroom, and other
Montenegrin agri food specialties. Another advantage is the ability to work closely with
creative industries and ultimately strengthening the competitive advantages of the region.
Montenegro‘s tourism industry is growing and, since food and gastronomy are essential components of the
tourism industry both sectors can greatly benefit from synergies that can be created through niche and
umbrella branding.
This helps disadvantaged regions of Montenegro to capitalise on their gastronomic wealth, foster linkages
and local networks with gastronomy and the tourism sector, which helps ensure social inclusion and
reduces tourism leakage.
New linkages are formed, new ideas generated, innovative solutions found, better supply chains
established, and a better flow of information in and out of the cluster is being realized. The Delicious
Montenegro brand really helps local people to grow their businesses and better position the region on the
tourism map.
Case Study 29SHARED
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Bulgaria’s labour market is struggling with a lack of workers and
increasing labour costs, report Vera Denizova and Mila Cherneva
SHARED BULGARIA
Bulgaria: Hands needed
31
The most common problem
any employer in Bulgaria will
share is that they cannot find
people to hire. While some EU
countries are struggling with
high unemployment rates,
Bulgaria’s unemployment
rate for the first quarter of
2017 was 6.9%, down from the
corresponding period a year
earlier of 8.6%.
Consequently, while
unemployment is going down,
labour costs and salaries are
going up.
Even if a municipality starts to
attract investors and hopes for
a boost in its economy, soon
after that all of them face the
same fate: a lack of people to
hire.
Labour shortage
The demand for labour has
risen since 2015 and HR
experts say the hunger for
employees has reached the
critical levels of 2007 when the
country’s labour market was
strong. However, since then,
Bulgaria has lost half a million
of its population, two-thirds of
whom are of working age.
There are several key reasons
for the scarcity of workforce.
On the one hand, emigration
is a significant phenomenon
not only in Bulgaria, but
also across Eastern Europe.
According to a report by the
International Monetary Fund,
almost 20m people have left
Eastern Europe in the last 25
years, which is approximately
5.5% of its overall population in
1990.
Eight out of ten people moved
to Western Europe and their
level of education is higher
than the average for their
countries of origin. The IMF
noted that this has likely
to have benefited the host
countries in the European
Union, but this exodus shrinks
the gross domestic product of
the countries of origin.
The trend also creates more
problems with education.
The ability of employees to
retrain and adapt to the new
rules of the labour market,
and also to compete with
machines, is becoming a key
factor in this environment. The
Bulgarian education system,
however, is not yet equipped to
prepare students for this new
challenge.
The positive news is that
business itself is taking up
an active role in preparing
students for employment. But
significant progress won’t be
achieved without government
involvement.
The first signs of the looming
problems caused by the
shrinking labour force can
be seen in the decrease of
occupied job positions. The
National Statistical Institute
(NSI) data shows that in the
first quarter of 2016 these
numbered 2,220,108, while in
the last quarter of the year the
figure fell to 2,212,437. This
certainly hinders the prospects
for growth.
Labour cost rising
One consequence of the
growing demand for labour
force an increase in salaries.
At the end of last year, the
average gross [monthly] salary
in Bulgaria exceeded 1,000 levs
(US$630), marking an annual
increase of about 8%, according
to NSI data. According to Yavor
Alexiev from the Institute
for Market Economic, this
tendency will continue to be
reflected when the 2017 figures
are released. “We are certain to
see an increase in labour costs
of about 8-9% this year as well,”
he says.
The IT sector in Varna, the
third biggest city in Bulgaria,
is a good example of this
phenomenon. According to
the NSI, the number of people
working in IT firms grew from
2,124 in 2011 to 3,215 by the end
of 2015. Monthly salaries also
increased over the period from
943 to 1,255 levs. Companies
know they have to compete
with IT firms in Sofia, and
salary is their main weapon.
A major factor in the rise in
salaries is the deficit of certain
skills and also demand for a
large number of employees
in certain sectors, notes
Maria Temelkova, Manager at
Manpower Bulgaria. “There
are employers, who believe it
is enough for the company to
be a known brand with a good
history, but this is no longer
the case. The competition for
employees is strong between
companies with a similar
profile and the obvious way to
‘steal’ them is more money.
Alexiev points out that pay
pressures vary according to
whether a sector is export-
orientated or works for the
local market. “Restaurant
business and the processing
industry are sectors with low
added value. An increase in
labour costs there will be much
more tangible than in other
industries with higher added
value”, he adds.
The main issue is that not
much is being done in Bulgaria
to solve these problems.
Countries like Poland and
Estonia have started to take
successful measures for
boosting their labour force
and enriching its skills.
Possible practices can involve
providing dual secondary
education, training and hiring
workers from underprivileged
minorities and attracting
people from areas with high
levels of unemployment.
But for now there is no
consistency, nor clear support
from the government. Until a
coherent plan is drafted, the
problem will deepen and the
private sector will have to fight
for its causes mostly alone.
This is a slightly edited article first published in KQuarterly,
Bulgaria
views

SHARED
views
Innovation 33
A flagship in Bulgaria’s
innovation ecosystem
The contest winners are traditionally awarded by the
President of the Republic of Bulgaria
Established in 1991, the
Applied Research and
Communications Fund
(ARC Fund) is the premier
Bulgarian think-tank in the
area of innovation policy
and business support,
transnational technology
transfer, information society
and smart specialisation.
Its mission is to support
the capacity building of
businesses, public agencies
or private organisations
towards enhanced innovation
performance.
In 2004 ARC launched
the annual Innovation.bg
flagship comprising three
pillars integrated into one –
Innovation.bg annual report,
the National Innovation Forum
(NIF), and the Innovative
Enterprise of the Year national
contest.
The Forum, organised under
the auspices of the President
of the Republic of Bulgaria,
announces the key findings
and recommendations of
the Innovation.bg report
and features the the award
ceremony of the Innovative
Enterprise of the Year National
Contest.
The contest is an efficient
tool for entrepreneurial and
innovation discovery and
brings to public attention
new champions and business
players and also leverages
their standing internationally.
The event has been recognised
by the European Commission
as Bulgaria’s best national
practice for promoting
innovations.
The contest winners are
traditionally awarded by the
President of the Republic
of Bulgaria. More than 90
companies so far have already
enjoyed the benefits of being
winners or nominees –
including increased credibility
and business opportunities,
both on the EU Single market
and beyond.
The Innovation.bg report
makes an annual assessment
of the innovation performance
of the Bulgarian economy
and ecosystem, based on its
own survey and other micro-
studies. It is one of ARC Fund’s
key tools for helping shape the
national innovation agenda,
presenting its findings and
policy recommendations at the
NIF.
The report methodology
combines several components,
which offer expertise,
policy building and impact
assessment know‐how and
makes recommendations for
improving the public policies
for innovation in Bulgaria
and in the EU, building on the
most recent theoretical and
empirical studies in the world
and taking into account the
economic, political, cultural
and institutional specifics
of the country’s innovation
system.
The report is used as key
reference source by the EC
on Bulgaria’s innovation
performance.
Furthermore, the ARC Fund
has also developed over recent
years the Green Innovation.
bg report – the only one of its
kind in Bulgaria. It is widely
referenced by Bulgarian public
authorities and the EC.
The Innovation.bg flagship
is organised within the
framework of the Enterprise
Europe Network – Bulgaria.
The Network, coordinated
by ARC, provides technology
brokering, innovation
counselling, consultancy
on access to risk financing,
training and information
services to over 5,000 clients,
representing the entire
range of high-tech and
traditional industrial sectors
in Bulgaria, starting from new
technologies, design, through
to social and open innovations.
Enterprise Europe Network
develops a set of tailored
services for start-ups in
support of their national and
international growth, including
in-depth consultation on the
SME Instrument of Horizon
2020, innovation management
assessment (including the
methodologies of A.T. Kerney’s
IMP3rove Academy), as well as
partner search and brokering
in more than 64 countries.
BULGARIAN-CHINESE FORUM 2018
International Cluster Policies,18 May 2018
Festival and Congress Centre, Varna, BULGARIA
Supported by the Institute Confucius,
University of Veliko Tarnovo
WWW.CNBGFORUM.EU | WWW.BLACKSEACLUSTER.COM | WWW.ITBSC.ORG
Bulgarian-Chinese Forum (BCF) is launched
this year as a flagship event of the Black
Sea Cluster Innovation and Development to
enhance cross-cultural connectivity and
business linkages between Bulgaria and
China, and China and Europe in line with
the EU-China Tourism Year and the Chinese
leadership’s Belt and Road Initiative. The
BCF2018 promotes global and regional
dialogue on International Cluster Policies.
It brings together the two of the oldest
civilisations in the world to discuss the
business potential of EU-China international
cluster policies and to encourage more
Europeans and Chinese to visit, discover and
appreciate each other’s places, cultures,
and traditions. BCF2018 fosters innovation,
sustainable tourism, quality of life and
digitisation through business networking,
sharing of knowledge and best practices in
global clusters development.
Interconnectivity comprises the core of
The Belt and Road Initiative. It includes
connectivity in the following five aspects:
policy coordination, facilities connectivity,
unimpeded trade, financial integration and
people-to-people bond. These aspects will be
discussed in BCF2018 panels.
PANEL DISCUSSIONS:
 Tourism Cluster Development Models for Global Competitiveness
 Digitisation Trends in Business: Exploring Innovative Solutions
 Creativity and Collaboration in Education: Meeting the Challenges Ahead
 Quality of Life: Europe-China Shared Perspectives
BCF2018 aims to stimulate new investment opportunities both in the European Union and
China and to serve as a platform for business, trade facilitation and investment to build
reliable partnerships.
ABOUT BCF 2018
Join us to exploit
the EU-China interconnectivity through
international clusters development

Sofia
Sofia is the largest city and the capital of Bulgaria,
as well as the 15th largest city in the European
Union with a population of 1,291,591 people (2011
Census). Sofia citizens account for 83.5% of the
population of Sofia district and for 17.5% of the
population of Bulgaria. Sofia is a cosmopolitan
city of different nationalities and cultures. They
elegantly coexist in the historic downtown, which
has become a kind of open-air museum with
preserved remains of ancient civilizations.
Geography
Sofia is located at about
550 m asl, in the foothill
of the northern slope
of the Vitosha, in the
Sofia plain enclosed by
mountains on all sides. As
early as Antiquity, the five
mountain passes leading
to the city (Iskar, Vladaya
Dragoman, Petrohan and
Botevgrad) and the roads
passing there connected
the Adriatic and Central
Europe with the Black
and Aegean Seas and the
Middle East. Thanks to
its central position in the
Balkans, Sofia is a large
and flourishing city to
this day. Since the remote
past the city is known
for its numerous hot and
cold mineral springs (15
fields with a total output
of mineral water of 130 l/
sec). The Iskar, the longest
river running entirely in
the territory of Bulgaria,
traverses the city.
Climate
The climate of Sofia is
temperate continental.
The city is protected
from strong winds by the
mountains that surround
it. The rainfall balance
can be characterized
as normal, which is a
precondition for various
outdoor activities
throughout the year.
History
Sofia is one of the oldest European capitals. Its history
dates back to ca 7th millennium BC. In 6th–5th century
BC, there there had been a Neolithic settlement here.
In the 8th century BC, the Thracian tribe of the Serds
settled around the thermal springs in the present-day
downtown. Their settlement was called Serdonpolis.
At the beginning of the 1st century AD, the Romans
took the city and it became an administrative centre in
the province of Thrace under the name of Serdica, and
was later renamed Ulpia Serdica in honour of Emperor
Trajan Marcus Ulpius. At the end of the 3rd century AD,
it became the capital of the province of Inner Dacia.
The city suffered the incursions of Huns, Goths and
other barbarian tribes in the 5th–6th century period.
In AD 809, it became part of the Bulgarian state and
because of its central location received the name
Sredets. In the 1018–1194-period the city was included
in the territory of the Byzantine Empire under the
name of Triaditsa. Later, it was called Sofia. The oldest
source mentioning the modern name of the city is a
charter from 1382, presented by Tsar Ivan Shishman
Tourism
Every year Sofia welcomes more and more foreign
and Bulgarian guests while offering opportunities
for various types of tourism.
Compared to 2016 in 2017 there was an increase
of 13% in the number of tourists that stayed at
accommodation establishments as well as an
increase of 15% in the number of realized overnight
stays.
In 2017 Sofia was visited by 1 346 993 tourists, 65%
of whom were foreigners. Most of the tourists were
from Italy (69,574), Great Britain (64,716), Germany
(61,585), Greece (57,734) and Israel (51,472). The
highest increase was recorded among tourists from
the Netherlands (+57%), Spain (+51%), Ireland (+ 51%),
Belgium (+40%) and Italy (+36%).
Sofia was also visited by people from faraway
countries. In addition to tourists from the US,
Sofia is becoming a more and more interesting
destination for tourists from China (+48%), India (+
31%) and Australia (+15%). It is important to note that
in 2017 almost all markets reported a growth and
there was a decrease in the number of tourists from
Norway (-11%), Armenia (-7%), Slovenia (-3%) and
Canada (-2%) only.
The number of overnight stays increased by 15%
and in 2017 their total number was 2 444 684. The
nights spent by Bulgarians were 770 201 - 32 % of
all overnight stays. Among foreigners the greatest
number of overnight stays was realized by visitors
from Italy (150,313), the United Kingdom (131,486)
and Israel (120,071), while the highest increase was
recorded among tourists from the Netherlands
(62,49%), Ireland (61,46%) and Spain 54.10%).
The average length of stay of visitors in Sofia
remained unchanged – 1.8 days: for Bulgarian
guests it was 1.7 days, while for foreigners – 1.9
days. Guests from Georgia (average 2.7 days),
Belarus (2.7 days) and Latvia (2.6 days) stayed the
longest.
to the Dragalevtsi Monastery. From the 14th century
onwards, until 4 January 1878 the city was part of the
Ottoman Empire. Sofia was liberated by the Russian
army under the command of General Gurko. On 3
April 1879, on a proposal of Professor Marin Drinov,
Bulgarian historian, the Constitutive Assembly in
Veliko Tarnovo designated the city for a capital of the
Principality of Bulgaria.

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