Several funds will finance high-tech companies in Bulgaria with EUR 250 million

In an attempt to support the innovative economy with high added value, the Bulgarian Ministry of Innovation and Growth will support high-tech companies, including those in the microelectronics sector, with over EUR 250 million. The funds will be disbursed mainly to small and medium-sized enterprises, as well as to start-ups. One of the areas where Bulgaria has a huge potential to become a factor is microelectronics.

In 2024, the so-called Fund of Funds will launch procedures for the selection of financial intermediaries for the Technology Transfer Fund with a capital of EUR 58.5 million, the Enterprise Innovation Fund (EUR 33.5 million) and two digitization funds (EUR 92 million). Mixing grants and equity funding, these will support the commercialization of innovative ideas and projects, as explained by the Bulgarian Deputy Minister of Innovation and Growth, Martin Gikov, during a panel on business opportunities between Bulgaria and Great Britain.

The Technology Transfer Fund will encourage the development of spin-off companies, high-tech start-ups and knowledge-based companies as part of industrial start-up systems.

The Enterprise Innovation Fund will support the creation and development of innovative enterprises, prioritized in the high-tech or medium-high-tech sectors of manufacturing and knowledge-intensive services, and the two Digitization Funds will accordingly support investments aimed at introducing and developing digital technologies, software, and digital applications in the field of Industry 4.0.

The funding is intended to improve access to research and development, as well as the internal implementation of innovations in order to increase the number of marketed innovations that are developed by the companies themselves," said the Deputy Minister.

At the same time, the Capital Fund for Recovery and Development of the European Investment Fund (EIF) will be providing financing for sustainable and digital infrastructure to the tune of nearly EUR 30 million through the end of 2026.

Private co-financing from the financial intermediaries will be in the amount of no less than EUR 45 million.

Becoming a factor in microelectronics

"We have huge potential in the field of microelectronics, but we must concentrate our efforts in specific directions, such as creating new products, designing chips and electronic sensors, manufacturing components for robotics," commented the Bulgarian Minister of Economy and Industry Bogdan Bogdanov during the round table to promote cooperation between the United Kingdom and Bulgaria in the field of semiconductors and microelectronics.

In Bulgaria, over 400 companies work in the mechatronics, electronics and microelectronics sectors and make a serious contribution to the development of the economy, by employing about 60,000 people. These enterprises are export-oriented and have some of the most modern productions and highly qualified personnel. All of this gives the microelectronics and mechatronics sectors a prominent role - apart from being among the fastest growing and innovative industries in the Bulgarian economy, it is also considered key for future growth and investments in the country.

Bogdanov pointed out that in recent years, more and more research and development centres of international companies from various sectors have opened in Bulgaria, and this creates an additional incentive for the development of the industry.

Thanks to the raw materials and components that we produce, in the coming years we can become an important factor in the supply chain", believes Bogdanov, who emphasized that there’s an ambition to transform the Bulgarian economy.

Translated by Tzvetozar Vincent Iolov