1. Competitiveness Initiatives in the Europe and Eurasia Region Sofia, Bulgaria June 8 - 10 Presentation Bulgarian Competitiveness Initiative Development process, implementation and results

2. PHASE 1 – The Bulgarian Competitiveness Exercise (1)  Approximately 70 presentations (mixed and industry specific groups) to over 2000 people all over the country  Over 40 appearances on TV and radio throughout the country  Interviews and articles have been published in all daily, weekly and monthly newspapers and magazines, and more specifically several series in all leading business newspapers and magazines  Web site developed – www.competitiveness.bgwww.competitiveness.bg  Video developed and widely disseminated (includes interviews with Garrett Fitzgerald, former PM of Ireland, several Bulgarian business leaders, and former President Stoyanov)

3.  Competitiveness Benchmarking Report for Bulgaria developed and disseminated to representatives of the business community, Government, Parliament and donors  Competitiveness Questionnaire has been prepared by the IME / Bulgaria, based on a questionnaire of the Monitor Company and a previous poll of the World Bank conducted in five Balkan countries. (Over 160 responses)  Six case studies and five overviews developed (Overviews - Factor Conditions; Domestic Demand Conditions; Tourism 2000; Wine Industry and Financial Sector; and Case Studies - Canning Industry, Unimasters Logistics, Vinzavod Assenovgrad, Sirma, EPIQ, Wooltex)  Short study on geographic clustering of industry in Bulgaria developed by FED / Bulgaria, which was in fact the first try at cluster mapping PHASE 1 – The Bulgarian Competitiveness Exercise (2)

4.  National Competitiveness Conference – Key note speaker: Joe Maria Figueres, former President of Costa Rica  In-depth round tables and working groups organized with 6 sectors: textile / garments, wine, tourism, shipping / transport, fruit and vegetable processing and IT  Final Competitiveness Report developed and disseminated to the widest range to the business community, Government, Political parties and donors At the end the BCE, the topics of competitiveness and cluster development were part of the vocabulary and activities of all political parties, Parliament, Government, business community, as well as the rest of the donors, which, since then, have started and continue to implement competitiveness or cluster development projects. PHASE 1 – The Bulgarian Competitiveness Exercise (3)

5. Before continuing on to PHASE 2… After the massive media coverage, reports, surveys, seminars and conferences, the Project decided to pull back and wait for the most interested, organized and forward looking sector(s) to approach the Project and decide to go forward as a full partner in the process and not just a participant

6. PHASE 2 – The Bulgarian Competitiveness Initiative (BCI): IT  The IT sector approached us and the Project decided to support their initiative.  The IT sector was chosen because: Only ones that organized themselves (all leading associations, small and large Bulgarian and foreign companies came together) Came with a concrete proposal, to develop a National IT Strategy The new Government, at that time, established the first ever IT position (Deputy Minister of Transport and Communication) and an ICT Agency Last but not least, we believe that IT is the catalyst for the economic growth of all other economic sectors in Bulgaria

7. PHASE 2 – BCI: IT  Working group on the Strategy was established and the true leaders came forward, which became the core IT group.  The core group was supported by USAID on a study tour to the Silicon Valley  A study tour to Bilbao was organized by BASSCOM and co- sponsored by the association and participants  After extensive discussions and analysis, the core group and a wide number of business and Government supporters with local and international experts – a first draft was developed, disseminated for comments and then finalized.  The core IT group got the strategy accepted and supported by the Prime Minister, President, all economic Ministers, the CEG, the whole IT community and finally was officially accepted by the Council of Ministers.

8. Implementing the IT Strategy  ICT Cluster Center established  Public – private dialogue on ICT issues constant and very professional  Branding Bulgaria – ICTalent  ESI Center / Bulgaria established (one of 6 in the World)  Toolkit for Technology Parks developed  IT solutions for business brochure developed and disseminated  Education working groups; LaSalle, Stevens University  iBulgaria Program by the MoTC – Computerization of schools, Tele-centers, Virtual University  Investment Delegation to the US

9. Global “guru” network Overview of ICT Cluster System ITCOORDINATIONCLUSTERCENTER International IT Companies in Bulgaria Bulgarian- Owned IT Companies “Quick start” eCenter Facilities Tele-centers Incubators Business Centers Learning Centers E-Gov Portal University-affiliated Talent (includes startup IT entrepreneurs) Business and Technology Parks Innovators / Inventors International IT Companies in Bulgaria Bulgarian- Owned IT Firms Regional Users Basic IT Education, Training, Re-Training Global Outsourcing Marketplaces (e.g. elance.com, rentacoder.com) Municipalities (offer lands, buildings to PPPs) Virtual Centers of Excellence USA UKUAE GERFRA PPP IT Promotion Networks Abroad European Software Institute Online Opportunities Exchange national portal for credential-building projects Virtual Incubator / Business Accelerator Private Developers (invest in PPPs) Technology Scholarship Fund Government Business Associations NGOs National IT Policy (IT Body) Bulgarian SMEs from all economic sectors

10. Bulgaria ICT logo

11.  ESI Center Bulgaria is the Regional Software Engineering Excellence Center of the European Software Institute. ESI Center Bulgaria founders are the European Software Institute (ESI), the Bulgarian Association of Software Companies (BASSCOM), and the Information and Communications Technologies Development Agency (ICTDA) at the Bulgarian Ministry of Transport and Communications. ESI Center Bulgaria implements leading strategic management and software engineering methodologies (CMM®I, BITS, SPICE, PEPIT, SPI, REUSE) to increase industry maturity in Eastern Europe.  ESI Center Bulgaria is responsible for all SEI/ESI Eastern Europe  Transfer of new technologies  Independent methodological and monitoring assistance  Long-term projects with greater social impact  Industry – education links strengthening European Software Institute – Regional Center Bulgaria

12. Investment Delegation  Participants – Minister of Finance; Deputy Minister of Transport and Communications; President of the Invest Bulgaria Agency; over 40 leading companies, associations and NGOs  Visited the Silicon Valley; Seattle and Tacoma, Washington; Washington D.C.; Fairfax County, Virginia; New York  The Delegation was co-sponsored by the Project, GoB and the companies themselves

13. Investment Delegation Results  6 events promoting Bulgaria in 5 locations (Sillicon Valley - Stanford University, Palo Alto, California; Seattle, Washington; Tacoma, Washington; Fairfax County, Virginia; Washington D.C.)  5 of the largest IT companies visited (HP, Siebel, Cisco, Intel, Microsoft)  4 CEOs met with the Delegation in two days (Carly Fiorina - HP, Siebel, John Chambers - Cisco, Craig Barret - Intel)  Over 200 US companies visited the different events  Delegation met with Governor elect and Lietenant Governor of Washington State, as well as the Center for Strategic and Internation Studies in Washington D.C.  Around 20 potential investment leads have been established for follow up and trips to Bulgaria, including HP, Siebel, Cisco, and Intel

14. Investment Delegation Results  Each company established up to 8 good leads for partnerships  With preliminary work 3 companies signed 4 contracts during the delegation, one of them with the State of Georgia for security solutions for their drivers’ licenses  BASSCOM signed MoU with the Washington Software Alliance and became a member of the organization. The WSA is the oldest Software NGO in the US and has over 3,000 members  The Bulgarian Commercial Office at the Embassy in D.C. became a member of the Northern Virginia Technology Council, giving the Bulgarian software companies the linkage to 1,300 members of their members  The Bulgarian Associations had the opportunity to meet over 10 US Associations and NGOs throughout the trip

15. PHASE 2 – BCI: CEG  Council for Economic Growth (CEG) established as the National forum for public – private dialogue on economic issues  Chairman – Minister of Economy  Government Members – Deputy PM and Minister of Transport and Communications, Ministers of Finance, Social Affairs, Regional Development and Energy  Private Sector Members – BIBA, BIA, BCCI, Employers’ Association and Business Club Vazrazhdane

16. PHASE 2 – BCI: CEG  76 decisions, 46 registered as implemented  51 meetings held  89 issues looked at, including 6 National Strategies (IT, Investment Promotion and Innovation), 16 Draft Laws and 18 Regulations  Some of the other most important joint decisions – Labor Code, Reform in the Commercial Register, Agreement of ecological requirements of industry and Assigning Commercial Attaches abroad on the PPP model

17. Lessons Learned  HAVE to HAVE business leadership  Time factor – initial expectations, WILL NOT HAPPEN as QUICK as YOU THINK or WANT  HAVE to USE World renowned leaders to build interest  EVOLVE to partners and leaders, NOT ONLY participants and followers  HAVE to HAVE real contribution  HAVE to WORK on a concrete task  ORGANIZE and PARTICIPATE in as many retreats and delegations abroad with partners