SHARED

views
2018 TCI
EUROPEAN CONFERENCE
20.03 - 22.03 Sofia, Bulgaria

competitiveness collaboration clusters networks innovation sustainability globalisation

Welcome!
to share your views in Sofia!
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.

From the organisers Strategy Big Interview Publication

Page 3 Page 5 Page 7

Case studies Probiotics project Evaluation

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.

Page 11 Page 21 Page 23 Page 14 -15

cluster
international members

bui
SHARED

views
ategy brand
economic Organiser’s Note 3

TEAM
lue big Calling the cluster community

identity
marketing
tive Read, use, contribute to and be inspired by our new publishing
platform, Shared Views

team people
industries

buildone
Publisher:
Consulting Cluster Veritas Ltd
34, Bogatitsa Street, Office A-01
Sofia, Bulgaria

companies
www.veritascluster.com

Editor: Paul Colston

cluster
Art Director: Dimitar Spasov

international members 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
Welcome to our special Sofia conference edition of Shared

strategy
Views, our shared publication of shared knowledge, inspiration

brand
European Commission

economic
and ideas. The European Cluster Collaboration Platform
TEAM

The Center for Economic Strategy and Competitiveness, in

As organisers, we are not only proud to bring the conference to collaboration with Sofia University
Bulgaria and to welcome such a distinguished delegation, but
KQuarterly
hope that the event will serve as one more solid brick in the

value big
bridge that links us all in Europe to a shared and prosperous
future. Business Development & Coordination:
Teodora Jilkova

identity
We have world leading thinkers joining us in Sofia to discuss the
marketing The copyright to the design and the content of the Shared

initiative
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.
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

team
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.
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.

We are keen to improve on this start and to see if we can build

WWW.VERITASCLUSTER.COM
a community that is in touch 24/7 and 365 days – for those that 2018 TCI
EUROPEAN CONFERENCE
want to connect and tap into our font of common knowledge at 20.03 - 22.03 Sofia, Bulgaria
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.
www.tci-europe2018.com
Most importantly, enjoy the charms of Bulgaria’s capital and #CLUSTERS #COMPETITIVENESS
make the most of the rich conference experience. I hope you all #COLLABORATION
find new inspiration to carry on building a brighter future for all
on the continent! #INNOVATION #NETWORKING
#INTERNATIONALISATION
Teodora Jilkova,
For and on behalf Consulting Cluster Veritas and organising team of
TCI European Conference 2018
 SHARED

views
BULGARIAN SMALL AND MEDIUM ENTERPRISES
PROMOTION AGENCY
Policy & Strategy 5

BSMEPA services and activities: Highlights Clusters creating shared value

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
with localised approach
development in the context of holistic integration in the European Union with the joined efforts of gov- James Wilson, Research Director at Orkestra, the Basque
ernment and social partners. The Agency performs these tasks through a number of measures aimed Institute of Competitiveness, says there is a big opportunity
at maintaining sustainable economic growth, increasing the competitiveness of Bulgarian enterprises for sharing value with a more localised approach involving
and fostering their development, promoting entrepreneurship, supporting advanced and innovative smaller firms cluster development leave practitioners to explore its
There is an opportunity little explicit space for working relevance in more localised
manufacturing processes, and rolling out public-private partnerships (PPPs). for cluster policy to evolve on the broader social impacts cluster dynamics among
to take on more of a social of clusters in their territories. groups of smaller firms.
foundation, in line with The notion of ‘creating shared Initiatives to explore the
the widening of the focus views’, introduced by Michael shared value of clusters are
of economic development Porter and Mark Kramer a few already underway in Catalonia
• Information and consultancy services: • Support for strengthening the export poten- policy from purely economic years ago, offers an exciting and the Basque Country, and
considerations (productivity, opportunity. It goes beyond at Orkestra we are working
– Guidelines for participation in trade fairs and ex- tial of SMEs: GDP growth) to include approaches to corporate social on conceptual and empirical
TCI Network’s 20th social and environmental responsibility by arguing research to support these
hibitions; – National stands at international fairs and ex- anniversary publication in considerations (‘beyond GDP’). that the strategy of the firm experiments.
2017 looked to the future of can become entwined with
– Provision of business informa tion; hibitions; clusters and cluster policies. Indeed, being based that of the territory where it The key question we seek to
– On-demand consultations by our experts. – Trade missions; One of the central arguments on territorially-rooted operates, generating value that respond to is ‘how creating
was that cluster policy is likely collaborative relationships, is shared by both. Until now, shared value can be leveraged
• Business information: – Business delegations; to be increasingly seen as an clusters are well positioned this concept has been applied as a cluster strategy, capable
inclusive tool that is capable to contribute to developing mainly in the context of large of bridging across SMEs
– Market surveys and analyses powered by the in- – Business forums in Bulgaria. of serving a wider policy responses to ‘grand social multinationals, but there and helping to root the
agenda, beyond economic challenges’. However, most is growing interest among socioeconomic impacts of
ternational company EUROMONITOR; • National Innovation Fund (NIF); competitiveness. practised approaches to policy-makers and cluster clusters in their territories?’
– Searching for business partners; • International conferences in Bulgaria and
– Information from commercial and trade offices abroad.
deployed at Bulgarian embassies.
• Seminars and training courses for SMEs: Applying shared value to clusters
– Induction training; Contacts: Alberto Pezzi, Treasurer & Member of the TCI Network Board The conference presentation
will also showcase a pilot
– Awareness seminars; of Directors, gives a taste of the theme he will be developing initiative currently in progress
2-4 Lege Str., Sofia 1000, Bulgaria in Catalonia.
– Specialised seminars; email: office@sme.government.bg, at the congress in Sofia
– Workshops dedicated to getting SMEs ready for Phone: +359 2 940 79 40 The notion of Shared Value However, while the concept a key tool for reinforcing the
export business. www.sme.government.bg was introduced by Michael of shared value has already competitiveness of companies,
Porter and Mark Kramer been applied to a number of especially by fostering
in 2011 at the edge of the projects led by multinational strategic change projects
last economic crisis and companies, its diffusion and, lately, by promoting
in the middle of a strong among smaller ones has been cross-sectoral collaboration.
debate towards the future of very limited. A number of projects with a
capitalism. According to the relevant component of shared
authors, shared value refers to Business clusters’ ecosystems value have already been
represent an ideal ground for carried out. An example is the
“policies and operating identifying and implementing creation of a water treatment
practices that enhance the shared value initiatives that plant in a leather-tanning
competitiveness of a company involves different actors of the cluster that, at the same time,
while simultaneously cluster value chain. In fact, cuts water consumption and
advancing the economic collaborative projects that improves competitiveness.
and social conditions in the increase company efficiency
and, at the same time, have a The challenge is therefore how
communities in which it positive outcome in society or to conceive and make more
operates. Shared value creation for the environment are not systematic the identification
focuses on identifying and uncommon. and implementation of
expanding the connections those initiatives and to how
between societal and economic Catalonia has 25 years of encourage it from the public
progress”. experience in using clusters as sector.
 SHARED
The company offers a range of over
Charting a new alignment
6 000 items by different brands, Shared Views meets TCI Network president Christian Ketels
the most popular of which are
RAIDER and TOPMASTER. What are the key milestones for the
The company is successfully
developing it′s activity
TCI Network?
in a lot European
markets.
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
The brand Raider is a trademark of Euromaster Import Export Ltd., known and established on the Bulgarian market eighteen years ago. The variety
organisations can collaborate
on improving their practices
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.
in the field. This has found its
reflection in the way we have
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.
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.
Created in the year of 2001 the brand Topmaster Professional became a leader in the What trends are you seeing
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.
in cluster development both
globally, and in separate
Topmaster Professional products are characterized with excellent quality, reliability
and innovation in terms of design and functionality.
regions?
The quality of the Topmaster Professional brand tools is confirmed by the TUV GS
Certification. All products are protected against defects when used properly.
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 sexy, but a slippery slope
available individuals.
www.euromasterbg.com
www.raider.bg www.topmaster.bg www.metabo.bg
However, there are some trends relationships on which the
views
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
for policy mis-steps when
government tries to guess new
Big Interview 7
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
market has not given its final change in that direction,
verdict. pushing regions to define
their own priorities in what
There are also areas in which should be done. We also
we have not made enough see a need to align to local
progress: The key item here circumstances in how things
is the failure to use cluster are done. Here I hope that the
policies and organisations as Sofia conference can provide
platforms to integrate policies inspiration for cluster-based
affecting different dimensions efforts specifically and help
of competitiveness. While us explore how they should
there is much talk about this be structured, governed, and
idea, the practice retains supported in a way that meets
a strong flavour of cluster institutional realities and
programmes as a new policy competitiveness needs in the
region.
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 There can
parts of Central and Eastern
Europe. This has been fuelled be a slippery
by EU-financing schemes
but it reflects a much deeper slope for
recognition that for catch-up
to successfully occur it will policy
require fundamental changes
within firms and locations that missteps
are not an automatic response
to achieving EU membership, when
having access to the Single
Market, or being exposed government
to the European regulatory
framework. It takes local tries to
communities and networks
to set their own course and guess new
then leverage the tools and
opportunities of the EU to relationships
achieve them. Here is where
cluster-based efforts have a on which the
lot of promise in providing a
framework to do so effectively. market has
While this opportunity is very not given its
"
real and often recognised,
it too often conflicts with final verdict.
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
SHARED

views
EU strategy 9

Smart Specialisation in the EU

The inputs of linking Social Economy &
Defining Smart Specialisation Smart Specialisation
Smart Specialisation is a strategy developed in the EU to enable
growth and jobs in European regions, based on the identification

Locally based activities and

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.
economic resilience
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.

EU Strategy Innovation and new synergies to

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.
Two approaches incorporate
create action
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.)

Social Economy into Smart

Specialisation:
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.
 SHARED

views
EU strategy 11
UNEXPECTED
CONNECTIONS Examples and good practices
COLLABORATING TO COMPETE
CLUSTERS IN ACTION Lapland and Navarra Other initiatives: specialised

TORONTO
Arctic 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.
21 ST GLOBAL CONFERENCE
Part of the programme for Lapland is dedicated to the organisation
of dynamic and self-sustained rural areas, thanks to the creation
OCTOBER 16–18, 2018 | www.TCI2018.org 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
clusters of Social Economy
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%).

TCI 2018 is the leading global clusters 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
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

event for government, business, and

the elderly… etc. the branch through innovation, training, and cultural/promotion
work.
http://luotsi.lappi.fi/c/document_library/get_file?folderId=3807809&name=DLFE-32214.pdf

academic leaders, to make unexpected

https://issuu.com/lapinamk/docs/b_16_2017_harju-myllyaho_kohllechne
Activities are centralised: on eco-activities, reinforcement of
employment and securing professional paths, cultural and
Navarra S3: creative industries, sustainable food and agriculture, and services.

connections for economic growth and A Smart Specialisation and interregional co-operation
(VANGUARD initiative). Part of the programme specialised in the
development of green activities and ecology.
Examples of French Clusters:
Urban cluster: Lille-MétroPôle-Solidaire, launched by Lille city

shared prosperity.
council and managed by the cluster InitiativeetCité. It represents
There is a new settling of priorities for 2030, with special concern a regrouping of various organisations into a co-creation/
for five development themes, including: collaboration working the space.

For more information and to register, visit: www.tci2018.org
• 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
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

Special Rate $680 CAD (~€440) for 4.0 technologies. Integrating and boosting people’s talent, and two main topics: 1. Relocation of agricultural production via the
promoting innovation and entrepreneurship. re-integration of production cycles by diverse social enterprises

TCI European Conference attendees!

Enter coupon code “Bulgaria18” at checkout.*
*Limited quantities available. Coupon code expires May 2, 2018.
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
(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).

HOSTED BY PRESENTED BY

PARTNERS
 SHARED

views
EU strategy 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

Members in over 110 countries working
to make their regions and clusters more
competitive.
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_

20 years supporting de_saugues.pdf
cluster practitioners - 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

What can the EU do in favour of Smart

Incorporating Social Innovation Specialisation in Social Economy?
into broader Smart Specialisation
topics Recall the development of social innovation approach into the
ECCP work, especially since they respond to regional
WWW.TCI-NETWORK.ORG A couple of regions referenced on the ECCP (European Cluster
development priorities on many subjects.
Collaboration Platform) incorporate social innovation and social
economy principles on certain themes of actions for Smart
Specialisation: Healthcare (especially on ‘Silver economy’ and all
TCI Network is the leading global network of main organizations and practitioners themes related to the care for elderly people), Food Tech, but also
with deep expertise in clusters and competitiveness, who collaborate in a unique creative industries are especially well represented. Encouraging trade and social and economic co-operation to create
open and flexible context to advance in the practice of competitiveness, innovation poles of innovative research and activity in order to respond to
and cluster development. Future Position X – Sweden: Specialised on Geo Health (an area of social needs (a study has been launched on the topic and will be
study of the intersections between health, human well-being and presented during a conference next July)
environment.) The aim is to link actors to create smart cities and
better environmental conditions for all, linking science, public
Through its activities, TCI reaches out to 9,000 Become a member to: health and social innovation.
practitioners from: European Social Economy Regions 2018: This will see the launch
https://fpx.se/ of a pilot of regional conferences on Social Economy in territories,
Development agencies • Be part of the cluster community worldwide with specific themes related to territorial issues and opportunities,
Ministries & government departments • Gain access to leading insights Transylvania Lifestyle – Romania: High tech culture and with the will to better connect actors on the field and create
entertainment, creative industries at the service of social synergies to boost innovation on the local level; (closing date for
Councils of competitiveness • Enjoy exclusive services cohesion and better living; developing research and innovation, applications was 28th February). This can trigger opportunities for
Cluster regions & networks • Gather with your peers during events for the valorisation of traditional creative industries and their use building clusters of Social Economy.
in sustainable entrepreneurship and use in new sectors of growth.
Cluster organizations • Engage on a regional level and join a TCI working Sources: Réseau DIESIS, Le Labo de l’ESS, CITEK, ECCP, Smart Spé
Academic institutions group https://sites.google.com/site/transilvanialifestylecluster/ communications…etc.
Companies
SHARED SHARED
views

views
Publication 14 Publication 15

Clusters on the Inside Contrasting Cultures

STAGNATING CLUSTERS 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 Firms and support organisations not socially close. High trust, open innovation environment, outward orientated.
Development Handbook Few personal networks. Dense inter-firm relations, multiplicity of personal connections,
Low trust environment. interactions, reciprocity. A co-opetition culture.
Not well connected with soft infrastructure. Many strong ties, and even more weak ties.
Isolation. Rigid. Places for chance encounters, informal conversations.
A central aspect of shared value is cluster development. Information spillovers, circulation of tacit knowledge.
Low investment in new products, technologies, training.
Strong clustering initiatives upgrade the skills and supplier Core firms acting as magnets, attracting allies, rivals & specialised
Extractive institutions.
base, develop and link supporting institutions, and enable support firms.
Paralysis-by-analysis.
businesses and communities to grow. Continual spawning of new firms, breakaways from academia and
Based in the region.
anchor firms; talent, student & FDI inflows.
I have connected with over 1,000 clusters globally, some are Reinvestment within the cluster.
stagnating and others are dynamic. Why such differences? Continual adjustment, experimentation. Dynamic systems, at
times chaotic. Firm strategy continually evolving.
While there is no ‘typical’ cluster, the table below presents Inclusive institutions in place, including a self-help cluster
a summary from my Cluster Development Handbook, organisation.
contrasting many stagnating, weak (though possibly Learning-by-doing.
embryonic) clusters and more dynamic, innovative clusters. Part of the region.

Cluster Decline Elements

RIGIDITY Fossilising, lock-in to old specialisations, business practices, technologies, declining

Stagnating and Dynamic Clusters
STAGNATING 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.
2. SUPPORT FIRMS Few, with generic competencies.
Remote, dysfunctional relationships with core
firms.
Many specialised inputs imported.
DYNAMIC CLUSTERS
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.
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.
markets, exhaustion of raw materials.
Innovation & productivity improvements weakened by inflexibilities.
LIMITED RENEWAL Unable to respond as new centres emerge with lower cost structures, as radical
technologies develop.
Development of cartels and mergers that reduce local rivalry.
COMPETITIVE POSITION Public agencies view investment attraction as the priority. Or the physical
ERODED infrastructure, e.g. another ‘Technology Park’.
Reputation decline, no longer the Go-To place.
ISOLATION WITHIN THE Limited dialogue, little trust across the cluster, isolated businesses, few chance
encounters. Rivalry centred on price, not differentiation.
CLUSTER 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 Not connected to other clusters, isolated from knowledge hubs.
Self-contained entity, all other clusters are competitors.
CLUSTER Poor connections with international customers.

Only basic needs addressed. STATIC GROUP OF FIRMS Dominance of a few, vertically integrated anchor firms; little regional outsourcing/
3. SOFT Inflow of students, skilled migrants, new
knowledge.
subcontracting.
Weak presence of supporting organisations, Start-ups not pushing the existing firms to innovate. Few new companies, few spin-offs.
(KNOWLEDGE) remote from the core and support firms. Well-structured institutions for collaboration. Less diversity.
INFRASTRUCTURE Universities, vocational training & high schools Exit of MNCs and anchor firms.
detached. Inability to attract fresh talent.
Industry associations with a lobby focus.
A clutter of public agencies and support
organisations, little coordination. CONGESTION EFFECTS Higher cost of land, skills outweighing agglomeration benefits.
Transport inefficiencies.
4. HARD Multi purpose, multi-sectoral industry parks and Cluster-specific technology parks &
incubators. incubators. Shared common user facilities.
(PHYSICAL)
CHANGE AVOIDANCE Maintaining the status quo, not going through the pain of change.
INFRASTRUCTURE No urgency. Failure to adjust to external shocks.
Successful lobbying ensuring status quo.
 SHARED

views
ECCP 17

ECCP – The EU Platform Connecting Clusters

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.

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

• O ver 1,330 news items published and 700 events promoted
• 3 4 testimonials (including videos) published
• 131 calls for proposals highlighted The European Cluster Collaboration Platform
• 40 cluster associations and networks featured A Vibrant Platform for Cluster Organisations
• More than 70 EU-funded cluster projects profiled
CLUSTER ORGANISATIONS MATCHMAKING EVENTS
As ‘home’ for the European Strategic Cluster Partnerships - MAPPING Opportunities to connect and
Going International (ESCP-4i), the ECCP hosts 15 partnerships The easiest way to find a cluster
organisation in Europe
initiate collaboration in high level

funded under the COSME programme from 2016-2017 and,

events in Europe and beyond
The innovative mapping offers: Cluster matchmaking meetings (C2C, C2B)
recently, 23 new partnerships were launched for 2018-2019. • hundreds of cluster organisation profiles stimulating cooperation for clusters and
SMEs through:
• a large selection of filters (industry
sectors, countries ...) • interactive and innovative formats

The platform’s matchmaking events have proved popular with • a smart correlation with the indicators of • professional support

the cluster community. By September 2017, 10 such events the European Cluster Observatory • dedicated financial support to
participate in events
were organised, bringing 300 participants from 28 European
countries to meet 140 participants from seven non-European INTERNATIONAL
EU CLUSTER PARTNERSHIPS

countries in a total of 2,180 bilateral meetings. PARTNER SEARCH Implementing joint strategies
COOPERATION to go international and specialise
A forum for cluster organisations
Cooperation with strategic countries to discuss offer/demand/exchange ECCP is the HOME of the newly established

For more information: For more information visit: www.clustercollaboration.eu Follow beyond Europe opportunities for collaboration European Strategic Cluster Partnerships
(ESCPs) offering:

office@abclusters.org us on Twitter @Clusters_EU and on LinkedIn. Key information sources helping clusters and
SMEs internationalise:
• information on priority third countries
A virtual, quick and efficient dedicated
• profile and visibility for ESCPs
“marketplace” to:
• a reserved forum for exchange and
• find and be found

www.abclusters.org
collaboration
* COSME is the EU Programme for the COmpetitiveness of enterprises and Small and Medium- • “gateways” to EU international support • trigger direct dialogue with other clusters
• an opportunity to showcase partnership
services
sized Enterprises and offers grants for European defence clusters co-operating in international
+359 879 830 492
• interact with peers in a structured way activities and success stories
partnerships.
** European Commission DG Internal Market, Industry, Entrepreneurship and SMEs (DG GROW) WWW.CLUSTERCOLLABORATION.EU
 SHARED
How to transform an Ugly Duckling
Dr Danka Sokolovic Milojkovic, Director of the Cluster House,
Explore
Serbia explores the question of whether Balkan clusters can
contribute to a regional transformation
‘‘SMEs play an essential role in developing the market
Plovdiv
economy where there are only a few big successful
companies present and where the former large socially-
owned enterprises are slowly disappearing’’
the ancient city with At the Strategic Forum in
Slovenia in September last
a modern attitude
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.
We invite you to be The cluster-based economic
development has been
#together at the hundreds of
recognised in the Balkans
as a tool for achievement of
the greater entrepreneurial
initiative, innovativeness,
small- and large-scale events. competitiveness, employment,
SME trade collaboration,
investment promotion and
internationalisation, but
still there is a lack of Balkan
Come and join us. Cluster Policy and the Balkan
Clusters are in viewed in their
You are more than welcome. own region as something of an
Ugly Duckling.
You can also be #together with us on: The Cluster House Balkan
Black Sea Cluster Network
gathered in Thessaloniki in
2019plovdiv Plovdiv2019 European Capital September 2017 to discuss
plovdiv2019 plovdiv2019 www.plovdiv2019.eu of Culture the values of the market
economy and European society
within the framework of the
10th ECCP Greece Cluster
Matchmaking Mission, and
views
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, The biggest benefit cluster
and Russia have played an
important role in the Balkan’s
geopolitics, culture and history. increasing innovation and
The region is recognised for its competitiveness, quality
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 The largest obstacle is a
being in the state of transition lack of employees’ trust and
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
Policy & Strategy 19
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.
based optimisation of SMEs’
development strategy lies in
management standard
implementation, and in
improving a company’s brand
image, as well as promoting
energy efficiency and
environmental protection.
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.
 SHARED

views
Benefits for members
What do we do for our members? Project 21

Probiotics with a Harvard flavour

The Center for Economic
Strategy and Competitiveness,
International contacts to in collaboration with Sofia
enrich business networks University, organises an
Pool of experts and speakers economic development
course, Microeconomics of
Competitiveness (MOC) and since
it was started 10 years ago more
than 500 students have joined the
programme.
We collaborate with the MOC is a series of lectures, in
which participants discuss real-
world’s leading experts life cases in the area of economic
and clusters growth and development.
Matchmaking The lectures are conducted
Global & regional Study tours by Bulgarians who studied at
conferences Peer reviews Harvard University and the
Thematic events Staff exchange training materials are based on
Mentoring 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
We team up with We promote active learning to analyse a specific cluster
cities,regions and and matchmaking among in Bulgaria and formulate
recommendations for its future
organizations its members 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
R&D, 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)

“Cross-clustering partnership for boosting

eco-innovation by developing a joint
bio-based value-added network
for the Danube Region”

We gather and We forge connections DANUBIOVALNET stands for:

disseminate and build action-driven • DEVELOPMENT OF A JOINT BIO-BASED INDUSTRY CLUSTER POLICY STRATEGY
world-class,
practice-based
groups of expertise • CLUSTERS CONNECTING ENTERPRISES TRANSNATIONALLY
knowledge
• NEW BIO-BASED VALUE CHAINS IN THE DANUBE REGION
• ECO-INNOVATIONS FOR SUPPORTING THE REGIONAL DEVELOPMENT
The transition of a fossil-based to a bio-based industry addresses some of the main challenges
TCI’s cluster resources Regional initiatives:
Cluster Initiative Database Latin America, Oceania, Asia identified in the Danube region. The development of new bio-based value chains from primary
Why clusters matter series Cluster evaluation working production to consumer markets needs to be done by connecting enterprises from different
Academic articles group 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.

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
 SHARED

views
The global conference and meetings industry is a real dynamo for innovation and Evaluation 23
development, exposing delegates to new and innovative ideas for world development.
Meetings also support global research and collaboration.

Cluster evaluation: Learning to complete

The positive effect of conferences is felt across many sectors, as well as new areas: witness
the rise of blockchain technology. The thirst for knowledge about this phenomenon is being
quenched at numerous conferences. Meetings are where all world-changing ideas can be
tested in the forum of debate.
Conferences also enable regional sectors to showcase expertise to a global audience, as well
as historically drawing in delegates and their large spend to destinations.
the virtuous circle!
Conferences and exhibitions are forums where deals and business contracts are signed,
helping spread the economic ripple much wider than the event itself.
By Madeline Smith, James Wilson and Emily Wise of the Clusters Evaluation
Most governments get this value of conferences and events and understand the policy and Working Group
political benefits associated with hosting major meetings on their territory, linking such 1. Evaluation for change
Evaluation is a fantastic opportunity to learn from cluster efforts
events to driving the economic development of their community.
– to find out what is working and understand why. Evaluation is about learning,
To keep abreast of the world of international conferencing and to see how it is a motor for not just audit (although
economic and research development and a source for sharing innovative ideas, plug in to Too often evaluation lessons are not taken back into new demonstrating ROI is important).
programme development. It is important to explore how to close It is important to ask ourselves
the definitive global portal: www.c-mw.net. Our website also connects venues, suppliers and
that virtuous circle and continually improve policy and practice. how the information will be used
organisers to the news and views of this global industry. to change what we do and how
we do it, and to review if we are
We welcome your participation in our forums and we wish all TCI Network delegates in The TCI network, working in the fields of competitiveness,
Sofia a most successful conference! innovation and clusters, has frequently wrestled with the issues doing the right (most relevant)
things. Evaluation should be a
of cluster evaluation. After many years of discussing these process of continuous learning
@cm_world challenges on a more ad hoc basis, a decision was taken in 2012 that feeds the policy process; not
to establish a Cluster Evaluation Working Group. This brought
just a one-off analysis following
together academics, policymakers and cluster practitioners an intervention.
from around the world to collectively address this topic in a
cOnFeRence & meetInGS wORLD series of structured sharing and development activities. Since
then, five workshops have been organised (in Scotland, Northern 2. Who is interested? Who is
listening? Who should we talk
Ireland, Poland, Spain and Norway), each bringing together 20-
40 international participants from practitioners, academia and to? How?
policy.
It is important to think about
A further five specific sessions have been held each year at different audiences (and
potentially involve them in the
the annual global conference of the TCI network. The regular evaluation design). Consider who
nature of these activities and the continuity of a proportion of
is best placed to do the evaluation
the people involved have facilitated a progressive process of – cluster manager, independent
identification and exploration of cluster evaluation challenges reviewer, government agency –
that has integrated theoretical and practical considerations. It and ask what is most relevant
has resulted in the development and validation of an evaluation for different audiences. Tips
framework based on the notion of what one would expect to for reaching these different
find in the ‘perfect cluster’, as well as a specific question bank to audiences include telling
promote future comparative analysis. stories as well as facts, tailoring
appropriate communication to
Another key output has been the development of seven the level of analysis (project,
organisation, programme,
Principles to Guide Cluster Evaluation – aiming to prompt the system), and presenting things
right reflections for those undertaking this challenging task.
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
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’

w w w. c - m w. n e t
SHARED SHARED
views

views
Snapshots from TCI Network events 24 Case studies 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

‘If you’ll believe in me, I’ll believe in you’

(The Unicorn in Lewis Carroll’s Through the Looking Glass)
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
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
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.

Austrian Mechatronics
A five-step scalable approach in Upper Austria for a successful were supported to become
the AVM forerunners and to
megatrend implementation both in regions and in companies generate lighthouse tower
approaches respectively.

evaluated the status quo of 5. Make the progress

1. Trace research
2. Make yourself a forerunner
3. Integrate the environment
4. Support the willing and make them role models
5. Make the progress measureable and standardised
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
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
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’
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.

Sofia Tech Park JDC is a Bul-
garian state-owned com-
pany, which main task is to
work on the setting up of the
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”,
Sofia Tech Park -
the home for innovations
Location – Sofia, 111 Tsarigradskoshose Blvd., www. sofiatech.bg
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
SHARED
views
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 both reduce the climate Fourteen financial and two
competitiveness based change threads, create associated partners from
on collaboration and economic growth and jobs in 10 Danube countries have
innovation, guaranteeing the rural, coastal and industrial joined forces to map the
upgradeability of industry, areas, and improve the terrain in three bio-based
sciences and politics in economic and environmental value chains: phytopharmacy,
favour of the sustainable sustainability of primary eco-construction and bio-
development of our society. production and processing based packaging, newly
industries. extended with a hemp cluster
Being the representatives of initiative. As a result, the
many enterprises in specific The DanuBioValNet project identification of gaps in the
industries, R&D and other targeted clusters and their value chains follows, as well
competence bodies, clusters SMEs in the Danube Region as the interconnecting of the to facilitate eco-innovations
are a powerful tool for countries to diversify the business actors, academia and in the bio-based industry
Tech Tour, Junior Achieve- ing of various events that pioneering new paths through bioeconomy sector through policymakers. This will open by improving framework
ment Bulgaria. The start-up promote the dialogue be- value chains and whole transnational cross-clustering. opportunities for the biobased conditions and making better
sectors. One such sector is Thus, the project’s full name industries’ development and
companies will also have ac- tween the scientific and the use of clusters, potential
bioeconomy. is the ‘Cross-clustering facilitated a Joint Strategy for and diversity of the Danube
cess to services that will sup- business community. Only
partnership for boosting eco- Bio-based Industry Cluster Region. It is a project co-
port their development. a year of operation, the Fo- The gradual replacement innovation by developing a Policy. funded by European Union
The Science and Technol- rum has become a preferred of fossil resources by the joint bio-based value-added funds (ERDF, IPA) and the
bio-based ones holds great network for the Danube The main goal and specific
ogy Park will also provideac- venue for organizing confer- project duration is from
potential for Europe. It can Region’. objective of DanuBioValNet is January 2017 to June 2019.
cess to the latest scientific ences, forums, exhibitions
excellences to the start-ups and other events on national
and international level. In
Russian Cluster Observatory
and to the mature business
2017 more than 60 events
through the Laboratory
Complex, in which there are with over 45000 visitors took RCO at a glance
11 built and equipped high- place in the Forum’s halls. • Leading cluster-specific
tech and modern laboratory The Experimentarium is A short outline of the work of The Russian Cluster Observatory research and consulting
units. The Laboratory Com- intended for a museum of (RCO), founded in 2012 as a part of the Institute for Statistical centre
the innovation and the high
plex is created and functions Studies and Economics of Knowledge (ISSEK) at Moscow’s National • Comprehensive expertise
technology. The topics of the
thanks to the partnership of Research University Higher School of Economics (HSE). in cluster excellence,
future exhibitions will target
the Sofia Tech Park with lead- regional studies, innovation
at visitors of all ages. Special
ing Bulgarian scientists from RCO actively participates in Since 2014, RCO has been Ranking, which provides and industry-related policy
attention will be paid to the governmental cluster-related involved in performance individual regional profiles design
the Bulgarian Academy of
children and it is planned to efforts. The Observatory evaluation analysis of and a complex overview of
Sciences, the Sofia Universi- provides methodological innovative clusters, innovation processes based on • A range of services from
have a separate exhibition
ty „St. KlimentOhridski”, the assistance and expertise to engineering centres and a multistage evaluation system. legal acts drafting to cluster
for them through which the
Technical University - Sofia. Russia’s Federal Ministry of technological platforms, and in management training,
children may explore the Economic Development which drafting the recommendations RCO also hosts Cluster Map and from policy-makers
The Laboratories specialize is in charge of two large- for their development. of Russia (https://map.cluster. consulting to cluster
world of science and tech-
in biopharmaceuticals, bio- scale national programmes to hse.ru/), which is a national evaluation
nology in entertaining and
informatics, 3D prototyping, support innovative clusters: Since 2015, RCO has also been online, free and user-friendly
high-performance comput- interesting way. The chil- pilot and leading-edge. engaged in the development of platform that gathers up- • Single access point to
dren will be able to see and a legal framework regulating to-date information about data on clusters and cluster
ing technology, virtual re- There are 27 pilot innovative the launch and activity of clusters and their members, organisations throughout
interact with interactive ex-
ality, intelligent communi- clusters in 28 Russian regions. industrial clusters, supported specialisation, management, the country – Cluster Map of
hibits or to join a workshop, They were selected for total by the Federal Ministry of products and services, co-
cation systems and other Russia
lecture, and demonstration. subsidies worth more than Industry and Trade. There are operation proposals, strategic
scientific areas. The Experimentarium is also €90m in 2013-2015. Twelve 22 industrial clusters in 20 documents and contacts. More • TCI Network member.
The Innovation Forum a place for forums, confer- Russian regions host 12 Russian regions. than 110 clusters are registered
innovative clusters, which were on the Map.
„John Atanasov” is a place ences, exhibitions and other assigned the status of global One key RCO project is
for meetings and for host- events. investment attractiveness producing an annual Further information on measures and new research is
leaders in 2016-2017. Russian Regional Innovation federal cluster policy, support available at http://cluster.hse.ru/

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.
SHARED
views
Case Study 29
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
‘‘A collective brand ‘42oN 19oE’ belongs to the
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.
SHARED

views
BULGARIA 31

Bulgaria: Hands needed

Bulgaria’s labour market is struggling with a lack of workers and
increasing labour costs, report Vera Denizova and Mila Cherneva
The most common problem and also to compete with
any employer in Bulgaria will machines, is becoming a key
share is that they cannot find factor in this environment. The
people to hire. While some EU Bulgarian education system,
countries are struggling with however, is not yet equipped to
high unemployment rates, prepare students for this new
Bulgaria’s unemployment challenge.
rate for the first quarter of
2017 was 6.9%, down from the The positive news is that
corresponding period a year business itself is taking up
earlier of 8.6%. an active role in preparing
students for employment. But
Consequently, while significant progress won’t be
unemployment is going down, achieved without government
labour costs and salaries are involvement.
going up.
Even if a municipality starts to The first signs of the looming
attract investors and hopes for problems caused by the
a boost in its economy, soon shrinking labour force can
after that all of them face the be seen in the decrease of
same fate: a lack of people to occupied job positions. The
hire. National Statistical Institute
(NSI) data shows that in the
Labour shortage first quarter of 2016 these
The demand for labour has numbered 2,220,108, while in
risen since 2015 and HR the last quarter of the year the
experts say the hunger for figure fell to 2,212,437. This
employees has reached the certainly hinders the prospects
critical levels of 2007 when the for growth.
country’s labour market was
strong. However, since then, Labour cost rising
Bulgaria has lost half a million One consequence of the
of its population, two-thirds of growing demand for labour
whom are of working age. force an increase in salaries.
At the end of last year, the
There are several key reasons average gross [monthly] salary
for the scarcity of workforce. in Bulgaria exceeded 1,000 levs
On the one hand, emigration (US$630), marking an annual
is a significant phenomenon increase of about 8%, according
not only in Bulgaria, but to NSI data. According to Yavor
also across Eastern Europe. Alexiev from the Institute large number of employees The main issue is that not
According to a report by the for Market Economic, this in certain sectors, notes much is being done in Bulgaria
International Monetary Fund, tendency will continue to be Maria Temelkova, Manager at to solve these problems.
almost 20m people have left reflected when the 2017 figures Manpower Bulgaria. “There Countries like Poland and
Eastern Europe in the last 25 are released. “We are certain to are employers, who believe it Estonia have started to take
years, which is approximately see an increase in labour costs is enough for the company to successful measures for
5.5% of its overall population in of about 8-9% this year as well,” be a known brand with a good boosting their labour force
1990. he says. history, but this is no longer and enriching its skills.
the case. The competition for Possible practices can involve
Eight out of ten people moved The IT sector in Varna, the employees is strong between providing dual secondary
to Western Europe and their third biggest city in Bulgaria, companies with a similar education, training and hiring
level of education is higher is a good example of this profile and the obvious way to workers from underprivileged
than the average for their phenomenon. According to ‘steal’ them is more money. minorities and attracting
countries of origin. The IMF the NSI, the number of people people from areas with high
noted that this has likely working in IT firms grew from Alexiev points out that pay levels of unemployment.
to have benefited the host 2,124 in 2011 to 3,215 by the end pressures vary according to But for now there is no
countries in the European of 2015. Monthly salaries also whether a sector is export- consistency, nor clear support
Union, but this exodus shrinks increased over the period from orientated or works for the from the government. Until a
the gross domestic product of 943 to 1,255 levs. Companies local market. “Restaurant coherent plan is drafted, the
the countries of origin. know they have to compete business and the processing problem will deepen and the
with IT firms in Sofia, and industry are sectors with low private sector will have to fight
The trend also creates more salary is their main weapon. added value. An increase in for its causes mostly alone.
problems with education. labour costs there will be much
The ability of employees to A major factor in the rise in more tangible than in other
retrain and adapt to the new salaries is the deficit of certain industries with higher added This is a slightly edited article first published in KQuarterly,
rules of the labour market, skills and also demand for a value”, he adds. Bulgaria
 SHARED

views
Innovation 33

Supported by the Institute Confucius,

ABOUT BCF 2018
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.
BULGARIAN-CHINESE FORUM 2018
International Cluster Policies,18 May 2018
Festival and Congress Centre, Varna, BULGARIA
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
University of Veliko Tarnovo
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.
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
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,
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.
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.

PANEL DISCUSSIONS: pillars integrated into one –

Innovation.bg annual report,
the National Innovation Forum
 Tourism Cluster Development Models for Global Competitiveness (NIF), and the Innovative
Enterprise of the Year national
 Digitisation Trends in Business: Exploring Innovative Solutions contest.
 Creativity and Collaboration in Education: Meeting the Challenges Ahead The Forum, organised under
the auspices of the President
 Quality of Life: Europe-China Shared Perspectives of the Republic of Bulgaria,
announces the key findings
and recommendations of
BCF2018 aims to stimulate new investment opportunities both in the European Union and the Innovation.bg report
China and to serve as a platform for business, trade facilitation and investment to build and features the the award
reliable partnerships. ceremony of the Innovative
Enterprise of the Year National
Contest.
The contest is an efficient
Join us to exploit tool for entrepreneurial and
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
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

the EU-China interconnectivity through

international clusters development
WWW.CNBGFORUM.EU | WWW.BLACKSEACLUSTER.COM | WWW.ITBSC.ORG
Sofia
History
Sofia is one of the oldest European capitals. Its history
dates back to ca 7th millennium BC. In 6th–5th century
Sofia is the largest city and the capital of Bulgaria, BC, there there had been a Neolithic settlement here.
as well as the 15th largest city in the European In the 8th century BC, the Thracian tribe of the Serds
Union with a population of 1,291,591 people (2011 settled around the thermal springs in the present-day
Census). Sofia citizens account for 83.5% of the downtown. Their settlement was called Serdonpolis.
population of Sofia district and for 17.5% of the At the beginning of the 1st century AD, the Romans
population of Bulgaria. Sofia is a cosmopolitan took the city and it became an administrative centre in
city of different nationalities and cultures. They the province of Thrace under the name of Serdica, and
elegantly coexist in the historic downtown, which was later renamed Ulpia Serdica in honour of Emperor
has become a kind of open-air museum with Trajan Marcus Ulpius. At the end of the 3rd century AD,
preserved remains of ancient civilizations. 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 Tourism
because of its central location received the name
Sredets. In the 1018–1194-period the city was included Every year Sofia welcomes more and more foreign
in the territory of the Byzantine Empire under the and Bulgarian guests while offering opportunities
name of Triaditsa. Later, it was called Sofia. The oldest for various types of tourism.
source mentioning the modern name of the city is a Compared to 2016 in 2017 there was an increase
charter from 1382, presented by Tsar Ivan Shishman of 13% in the number of tourists that stayed at
accommodation establishments as well as an
Climate increase of 15% in the number of realized overnight
stays.
The climate of Sofia is In 2017 Sofia was visited by 1 346 993 tourists, 65%
temperate continental. of whom were foreigners. Most of the tourists were
The city is protected from Italy (69,574), Great Britain (64,716), Germany
from strong winds by the (61,585), Greece (57,734) and Israel (51,472). The
mountains that surround highest increase was recorded among tourists from
it. The rainfall balance the Netherlands (+57%), Spain (+51%), Ireland (+ 51%),
can be characterized Belgium (+40%) and Italy (+36%).
as normal, which is a Sofia was also visited by people from faraway
precondition for various countries. In addition to tourists from the US,
outdoor activities Sofia is becoming a more and more interesting
throughout the year. 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
Geography there was a decrease in the number of tourists from
Norway (-11%), Armenia (-7%), Slovenia (-3%) and
Sofia is located at about Canada (-2%) only.
550 m asl, in the foothill The number of overnight stays increased by 15%
of the northern slope and in 2017 their total number was 2 444 684. The
of the Vitosha, in the nights spent by Bulgarians were 770 201 - 32 % of
Sofia plain enclosed by all overnight stays. Among foreigners the greatest
mountains on all sides. As number of overnight stays was realized by visitors
early as Antiquity, the five from Italy (150,313), the United Kingdom (131,486)
mountain passes leading and Israel (120,071), while the highest increase was
to the city (Iskar, Vladaya recorded among tourists from the Netherlands
Dragoman, Petrohan and (62,49%), Ireland (61,46%) and Spain 54.10%).
Botevgrad) and the roads The average length of stay of visitors in Sofia
passing there connected remained unchanged – 1.8 days: for Bulgarian
the Adriatic and Central guests it was 1.7 days, while for foreigners – 1.9
Europe with the Black days. Guests from Georgia (average 2.7 days),
and Aegean Seas and the Belarus (2.7 days) and Latvia (2.6 days) stayed the
Middle East. Thanks to longest.
its central position in the
Balkans, Sofia is a large to the Dragalevtsi Monastery. From the 14th century
and flourishing city to onwards, until 4 January 1878 the city was part of the
this day. Since the remote Ottoman Empire. Sofia was liberated by the Russian
past the city is known army under the command of General Gurko. On 3
for its numerous hot and April 1879, on a proposal of Professor Marin Drinov,
cold mineral springs (15 Bulgarian historian, the Constitutive Assembly in
fields with a total output Veliko Tarnovo designated the city for a capital of the
of mineral water of 130 l/ Principality of Bulgaria.
sec). The Iskar, the longest
river running entirely in
the territory of Bulgaria,
traverses the city.
#TCIEurope18