COUNTRY SPECIALISATION REPORT - Europa · equipment, office machinery, pharmaceuticals and chemicals. Moreover, in almost all of the above sectors it appears that Bulgaria increased

COUNTRY SPECIALISATION REPORT

Country: Bulgaria

Date: June 2006

ERAWATCH Network asbl: Project team: NIFU STEP, University of Sussex (SPRU),

Joanneum Research, Logotech, FhG-ISI

The opinions expressed in this publication are those of the individual authors alone and do not necessarily reflect the position of the European Commission.

ERAWATCH® is a registered Trade Mark.

Reproduction of content is authorised provided the source is acknowledged.

© European Communities, 2007.

Website: http://cordis.europa.eu/erawatch/

Index

COUNTRY SPECIALISATION REPORT - BULGARIA ..................................................................1

Main findings...............................................................................................................................1

Main R&D figures – Total R&D expenditure................................................................................2

Public R&D statistics...................................................................................................................2

GBAORD by socioeconomic objective ....................................................................................2

HERD by field of science.........................................................................................................3

Business ENTERPISE INTRAMURAL EXPENDITURE ON R&D (BERD) .................................4

Bibliometrics................................................................................................................................6

Patents........................................................................................................................................9

Economic specialisation............................................................................................................10

Correlation analysis ....................................................................................................................1

Explanatory notes .......................................................................................................................1

ISIC v3 codes and sector description ......................................................................................1

How to read specialisation profile figures ................................................................................2

Index of tables and figures

Table 1. R&D expenditure by sector of performance and source of funds .Bulgaria. 1993 and 2002. Million Euros. Current prices.................................................................................................2

Table 2. Correlation analysis. Specialisaion indexes BERD, Value added, Employment, Exports and patents. Bulgaria. Averages 1993-1995 and 2001-2003..........................................................1

Table 3: Specialisation Profile ........................................................................................................1

Figure 1. R&D expenditure by performing sector as per cent of GDP (left axis). GDP in million Euros (right axis).Bulgaria.1993-2003. ...........................................................................................2

Figure 2. GERD by type of research. Bulgaria. 1993,1998 and 2002.............................................2

Figure 3. Government Budget Appropriations or Outlays for R&D (GBAORD) by socio-ecomomic objective. Specialisation profile. Bulgaria. 1993 and 2003..............................................................2

Figure 4. Expenditure on R&D in the Higher Education Sector (HERD) by field of science. Bulgaria. 1993, 1998 and 2002. Per cent of total HERD and in million Euro. .................................3

Figure 5. Expenditure on R&D in the Government sector (GOVERD) by field of science. Specialisation profile. Bulgaria. 1993, 1998 and 2002....................................................................3

Figure 6. Business enterprise intramural expenditure on R&D by industrial sector. Specialisation profile. Bulgaria. Available years 1997 and 2003............................................................................4

Figure 7. Shares of Business enterprise intramural expenditure on R&D (BERD) in the sectors funded by government....................................................................................................................5

Figure 8. Shares of total government funding of Business enterprise intramural expenditure on R&D (BERD) by industrial sectors. 2003 ........................................................................................6

Figure 9. Number of publications by scientific field. 25 Scientific fields. Specialisation profile. Bulgaria. Averages 1993-1995 and 2001-2003. .............................................................................6

Figure 10. Shares of total publications by scientific field. 25 Scientific fields. Bulgaria. 1993 and 2003. ..............................................................................................................................................7

Figure 11. Number of citations by scientific field. 25 scientific fields. Specialisation profile. Bulgaria. Averages 1993-1995 and 2001-2003. Five years citation window. (i.e. citations to papers published in the period 1989-1991 and in the period 1997-1999 . ......................................8

Figure 12. Number of patents by industrial sector. 18 sectors in manufacturing. Specialisation profile. Bulgaria. Averages 1993-1995 and 2001-2003. Based on correspondence matrix ISI-SPRU-OST. ....................................................................................................................................9

Figure 13. Shares of total patens by industrial sector. 18 sectors in manufacturing. Bulgaria. Averages 1993-1997 and 1999-2003. Based on correspondence matrix ISI-SPRU-OST..............9

Figure 14. Value added by industrial sector. 34 sectors. Specialisation profile. Bulgaria. Averages 1993-1995 and 2001-2003. Million Euros. Current prices. ...........................................................10

Figure 15. Shares of total value added by industrial sector. 34 sectors. Bulgaria. 1993 and 2003. Million Euros. Current prices.........................................................................................................10

Figure 16. Employment by industrial sector. Specialisation profile. Bulgaria. 34 sectors. Averages 1993-1995 and 2001-2003. Numbers engaged – hundreds. ........................................................11

Figure 17. Shares of total employment by industrial sector. 34 sectors. Bulgaria. 1993 and 2003. Numbers engaged – hundreds. ....................................................................................................11

Figure 18. Exports by industrial sector. Specialisation profile. Bulgaria. 34 sectors. Averages 1993-1995 and 2001-2003. Thousand USD. Current prices. .......................................................12

Figure 19. Shares of total exports by industrial sector. 34 sectors. Bulgaria. 1993 and 2003. Thousand USD. Current prices....................................................................................................12

Figure 20. BERD versus Value added specialisation in all sectors. Bulgaria. Based on values of 2003. ..............................................................................................................................................1

Figure 21. BERD versus patents. Specialisation indexes. Bulgaria. Based on values of 2003. ....1

Figure 22. BERD versus exports. Specialisation indexes. Bulgaria. Based on values of 2003......2

Figure 23: BERD and Value Added specialisation – an example ...................................................2

ERAWATCH – R&D specialization project / WP1 /Country Report

1

COUNTRY SPECIALISATION REPORT - BULGARIA

MAIN FINDINGS Bulgaria is one of the countries with little information available regarding technological and scientific specialisation, but with enough information regarding economic specialisation expressed by value added, employment and exports. This restriction on the availability of data creates difficulties in presenting a coherent profile of the country thus the analysis will be based on the available data.

In terms of GERD by type of research (Figure 2), it appears that significant structural changes took place in the country over the 1993-2002. Thus while during 1993, applied research accounted for 79.9% of GERD, its share was reduced by 2002 to 49.5%. At the same time the share of basic research increased and picked at 28.9% in 2002, while experimental research reached 28.9%.

Business enterprise intramural expenditure on R&D in Bulgaria (Figure 6) during 2003 was concentrated in a limited number of sectors, namely pharmaceuticals (27.7%), other business activities (14%), research and development (13.5%), financial intermediation (11.5%), machinery (7.1%) and chemicals (6.8%). During 2003, public support for research activities in enterprises (Figure 8) was limited only in four services sectors (Figure 9), namely to community services, research and development and telecommunications.

In terms of scientific specialisation, Bulgaria exhibits a strong specialisation profile in terms of natural sciences, but in most other scientific fields except pharmacology and plant and animals it is under-specialised. Finally, in terms of technological specialisation (Figure 12), Bulgaria is specialised in a number of medium to high R&D intensity sectors such as instruments, electronic equipment, office machinery, pharmaceuticals and chemicals. Moreover, in almost all of the above sectors it appears that Bulgaria increased its specialisation over the 1993-2003 period.

With regard to economic specialisation, and particularly value added (Figure 14) and employment (Figure 16), Bulgaria exhibits high specialisation in a large number of sectors in both measures, including sectors such as telecommunication and transportations services, transport equipment and shipbuilding, machinery, pharmaceuticals, petroleum, textiles, food and agriculture. Finally, for the manufacturing sector, it appears that there are no significant linkages (correlations) between economic and technological specialisation with the exception of the food, chemicals and petroleum industries. However, due to the limited data, further investigation is required.


2

MAIN R&D FIGURES – TOTAL R&D EXPENDITURE Figure 1. R&D expenditure by performing sector as per cent of GDP (left axis). GDP in million Euros (right axis).Bulgaria.1993-2003. Not Available

Table 1. R&D expenditure by sector of performance and source of funds .Bulgaria. 1993 and 2002. Million Euros. Current prices. Not Available

Figure 2. GERD by type of research. Bulgaria. 1993,1998 and 2002

23 19 24

82 32 40

11 18

0%10%20%30%40%50%60%70%80%90%

100%

1993 1998 2002

Basic Research Applied Research Experimental Development

Source: Eurostat Database, S & T Data, 2005

PUBLIC R&D STATISTICS GBAORD by socioeconomic objective Figure 3. Government Budget Appropriations or Outlays for R&D (GBAORD) by socio-ecomomic objective. Specialisation profile. Bulgaria. 1993 and 2003. Not Available .


3

HERD by field of science Figure 4. Expenditure on R&D in the Higher Education Sector (HERD) by field of science. Bulgaria. 1993, 1998 and 2002. Per cent of total HERD and in million Euro. Not Available

Figure 5. Expenditure on R&D in the Government sector (GOVERD) by field of science. Specialisation profile. Bulgaria. 1993, 1998 and 2002.

Not Available


4

BUSINESS ENTERPISE INTRAMURAL EXPENDITURE ON R&D (BERD) Figure 6. Business enterprise intramural expenditure on R&D by industrial sector. Specialisation profile. Bulgaria. Available years 1997 and 2003.

ChemicalsPharm

Machinery

Mining

Wood & Publishing

Basic - met

Office mach

Vehicles

Water & electr.Construction

Agriculture

FoodTextiles

Fabricated met

Electrical mach.Electr. EquipInstruments

Furniture & rec

Financ. interm

Other Business act

IT servicesR&D

Community services

-100 -50 0 50 100

1997 2003

Source: Eurostat Database, S & T Data, 2005. Own calculations


5

Figure 7. Shares of Business enterprise intramural expenditure on R&D (BERD) in the sectors funded by government

Not Available


6

Figure 8. Shares of total government funding of Business enterprise intramural expenditure on R&D (BERD) by industrial sectors. 2003

30.0%

30.0%

20.0%

20.0%

0% 5% 10% 15% 20% 25% 30% 35%

R&D

Real Estate

Telecom

Communityservices

Source: Eurostat Database, S & T Data, 2005. Own calculations

BIBLIOMETRICS Figure 9. Number of publications by scientific field. 25 Scientific fields. Specialisation profile. Bulgaria. Averages 1993-1995 and 2001-2003.

Chemistry

Engineering

Plant & Animals

Education

Physics

Pharmacology

Mol Biology & Genetics

Neurosciences

Psychology

Agricultural Sc

Biology & Biochemistry

Space Sc

Computer Science

Clinical Medicine

Economics

Environment

Geosciences

Immunology

Microbiology

Materials Sc

Mathematics

Multdisciplinary

Social Sciences

-100 -50 0 50 100

1993-95 2001-03

Notes: Specialisation index with EU15 as reference. Max specialisation: + 100. Min. specialisation: -100. Source: Thomson ISI, NSIODE 2005, own calculations.


7

Figure 10. Shares of total publications by scientific field. 25 Scientific fields. Bulgaria. 1993 and 2003.

0%

5%

10%

15%

20%

25%A

gric

ultu

ral S

c

Spa

ce S

c

Bio

logy

&

Che

mis

try

Clin

ical

Com

pute

r

Eco

nom

ics

Edu

catio

n

Eng

inee

ring

Env

ironm

ent

Geo

scie

nces

Imm

unol

ogy

Law

Mol

Bio

logy

&

Mic

robi

olog

y

Mat

eria

ls S

c

Mat

hem

atic

s

Neu

rosc

ienc

es

Mul

tdis

cipl

inar

y

Phy

sics

Pla

nt &

Pha

rmac

olog

y

Psy

chol

ogy

Soc

ial

1993 2003

Source: Thomson ISI, NSIODE 2005, own calculations


8

Figure 11. Number of citations by scientific field. 25 scientific fields. Specialisation profile. Bulgaria. Averages 1993-1995 and 2001-2003. Five years citation window. (i.e. citations to papers published in the period 1989-1991 and in the period 1997-1999 .

Multdisciplinary

Agricultural Sc

Education

Biology & Biochemistry

Space Sc

ChemistryClinical Medicine

Computer Science

Economics

Engineering

EnvironmentGeosciences

Mol Biology & Genetics

Immunology

MicrobiologyMaterials Sc

Mathematics

Neurosciences

Physics

PharmacologyPlant & Animals

PsychologySocial Sciences

-100 -50 0 50 100

1993-95 2001-03

Notes: Specialisation index with EU15 as reference. Max specialisation: + 100. Min. specialisation: -100. Source: Thomson ISI, NSIODE 2005, own calculations.


9

PATENTS Figure 12. Number of patents by industrial sector. 18 sectors in manufacturing. Specialisation profile. Bulgaria. Averages 1993-1995 and 2001-2003. Based on correspondence matrix ISI-SPRU-OST.

Food

Pharm

Plastics

Electr. Equip

Instruments

Transport Equip.

Furniture

Wood & Publishing

Textiles

Chemicals

Non-met

Basic - met

Fabricated met

Machinery

Office machElectrical mach.

Vehicles

-100 -50 0 50 100

1993-95 2001-03

Notes: Specialisation index with EU15 as reference. Max specialisation: + 100. Min. specialisation: -100. Source: European Patent Office 2005, own calculations.

Figure 13. Shares of total patens by industrial sector. 18 sectors in manufacturing. Bulgaria. Averages 1993-1997 and 1999-2003. Based on correspondence matrix ISI-SPRU-OST.

0%

5%

10%

15%

20%

25%

Food

Text

iles

Woo

d &

Pub

lishi

ng

Che

mic

als

Pha

rm

Pla

stic

s

Non

-met

Bas

ic -

met

Fabr

icat

edm

et

Mac

hine

ry

Offi

cem

ach

Ele

ctric

alm

ach.

Ele

ctr.

Equ

ip

Inst

rum

ents

Veh

icle

s

Tran

spor

tE

quip

.

Furn

iture

1993-1997 1999-2003

Notes: Specialisation index with EU15 as reference. Max specialisation: + 100. Min. specialisation: -100. Source: European Patent Office 2005, own calculations.


10

ECONOMIC SPECIALISATION Figure 14. Value added by industrial sector. 34 sectors. Specialisation profile. Bulgaria. Averages 1993-1995 and 2001-2003. Million Euros. Current prices.

Electrical mach.

Trade

Financ. interm

Non-metPlastics

Instruments

AirTransport nec

Water & electr.

Telecom

Textiles

AgricultureMining

Food

Wood & Publishing

PetroleumChemicals

Pharm

Basic - metFabricated met

Office machMachinery

Electr. Equip

VehiclesShips

Furniture & rec

Construction

HotelsTransport

Real estateIT services

Other Business act

Community services

R&D

-100 -50 0 50 100

1993-95 2001-03

Notes: Specialisation index with EU15 as reference. Max specialisation: + 100. Min. specialisation: -100. Source: OECD, STAN 2005, own calculations.

Figure 15. Shares of total value added by industrial sector. 34 sectors. Bulgaria. 1993 and 2003. Million Euros. Current prices.

0%2%4%6%8%

10%12%14%16%18%

Agr

icul

ture

Min

ing

Food

Text

iles

Woo

d &

Pet

role

umC

hem

ical

sP

harm

Pla

stic

sN

on-m

etB

asic

- m

etFa

bric

ated

Mac

hine

ryO

ffice

Ele

ctric

alE

lect

r.In

stru

men

tsV

ehic

les

Shi

ps Air

Tran

spor

tFu

rnitu

re &

Wat

er &

Con

stru

ctio

Trad

eH

otel

sTr

ansp

ort

Tele

com

Fina

nc.

Rea

l est

ate

IT s

ervi

ces

R&

DO

ther

Com

mun

ity

1993 2003

Source: OECD, STAN, 2005.


11

Figure 16. Employment by industrial sector. Specialisation profile. Bulgaria. 34 sectors. Averages 1993-1995 and 2001-2003. Numbers engaged – hundreds.

Mining

Chemicals

Plastics

Office mach

Electr. Equip

Construction

Agriculture

Food

Textiles

Wood & Publishing

Petroleum

Pharm

Non-met

Basic - metFabricated met

Machinery

Electrical mach.

InstrumentsVehicles

ShipsAir

Transport necFurniture & rec

Water & electr.

TradeHotels

Transport Telecom

Financ. interm Real estateIT servicesR&DOther Business act

Community services

-100 -50 0 50 100

1993-95 2001-03

Notes: Specialisation index with EU15 as reference. Max specialisation: + 100. Min. specialisation: -100. Source: OECD, STAN, 2005, own calculations.

Figure 17. Shares of total employment by industrial sector. 34 sectors. Bulgaria. 1993 and 2003. Numbers engaged – hundreds.

0%

5%

10%

15%

20%

25%

30%

Agr

icul

ture

Min

ing

Food

Text

iles

Woo

d &

Pet

role

umC

hem

ical

sP

harm

Pla

stic

sN

on-m

etB

asic

- m

etFa

bric

ated

Mac

hine

ryO

ffice

Ele

ctric

alE

lect

r.In

stru

men

tsV

ehic

les

Shi

ps Air

Tran

spor

tFu

rnitu

re &

Wat

er &

Con

stru

ctio

Trad

eH

otel

sTr

ansp

ort

Tele

com

Fina

nc.

Rea

l est

ate

IT s

ervi

ces

R&

DO

ther

Com

mun

ity

1993 2003

Source: OECD, STAN, 2005.


12

Figure 18. Exports by industrial sector. Specialisation profile. Bulgaria. 34 sectors. Averages 1993-1995 and 2001-2003. Thousand USD. Current prices.

Pharm

Mining

Non-met

Agriculture

Food

PetroleumWood &

PublishingTextiles

Chemicals

Plastics

Basic - met

Fabricated met

Machinery

Office mach

Electrical mach.

Electr. EquipInstruments

Vehicles

Ships

Air

Transport necFurniture

-100 -50 0 50 100

1993-95 2001-03

Notes: Specialisation index with EU15 as reference. Max specialisation: + 100. Min. specialisation: -100. Source: UNIDO, INDSTAT4 2005, ISIC Rev3 and COMTRADE 2005, own calculations.

Figure 19. Shares of total exports by industrial sector. 34 sectors. Bulgaria. 1993 and 2003. Thousand USD. Current prices.

0%

5%

10%

15%

20%

25%

30%

35%

Agr

icul

ture

Min

ing

Food

Text

iles

Woo

d &

Pub

lishi

ng

Pet

role

um

Che

mic

als

Pha

rm

Pla

stic

s

Non

-met

Bas

ic -

met

Fabr

icat

ed m

et

Mac

hine

ry

Offi

ce m

ach

Ele

ctric

al m

ach.

Ele

ctr.

Equ

ip

Inst

rum

ents

Veh

icle

s

Shi

ps Air

Tran

spor

t nec

Furn

iture

1993 2003

Source: UNIDO, INDSTAT4 2005, ISIC Rev3 and COMTRADE 2005, own calculations.


1

CORRELATION ANALYSIS Table 2. Correlation analysis. Specialisaion indexes BERD, Value added, Employment, Exports and patents. Bulgaria. Averages 1993-1995 and 2001-2003.

BG_BERD

97 BG_BERD

03 BG_PAT

9395 BG_PAT

0103 BG_VA

9395 BG_VA

0103 BG_EMP

9395 BG_EMP

0103 BG_EXP

9395 BG_EXP

0103 BG_BERD97 Pearson

Correlation 1

Sig. (2-tailed) . BG_BERD03 Pearson

Correlation ,821(*) 1

Sig. (2-tailed) ,012 . BG_PAT9395 Pearson

Correlation -,267 ,400 1

Sig. (2-tailed) ,455 ,286 . BG_PAT0103 Pearson

Correlation -,211 -,080 ,812(**) 1

Sig. (2-tailed) ,559 ,837 ,000 . BG_VA9395 Pearson

Correlation ,291 ,143 ,279 ,173 1

Sig. (2-tailed) ,292 ,596 ,314 ,539 . BG_VA0103 Pearson

Correlation ,357 -,288 ,129 ,115 ,538(**) 1

Sig. (2-tailed) ,192 ,279 ,647 ,682 ,001 .BG_EMP9395 Pearson

Correlation ,189 -,431 ,168 ,174 ,431(*) ,631(**) 1

Sig. (2-tailed) ,500 ,096 ,550 ,535 ,012 ,000 .BG_EMP0103 Pearson

Correlation ,146 -,401 ,092 ,065 ,363(*) ,774(**) ,871(**) 1

Sig. (2-tailed) ,604 ,124 ,744 ,819 ,038 ,000 ,000 .BG_EXP9395 Pearson

Correlation ,191 ,283 ,438 ,356 ,731(**) ,755(**) ,564(**) ,585(**) 1

Sig. (2-tailed) ,575 ,427 ,103 ,193 ,000 ,000 ,008 ,005 .BG_EXP0103 Pearson

Correlation ,524 ,084 -,323 -,257 ,582(**) ,675(**) ,670(**) ,701(**) ,628(**) 1

Sig. (2-tailed) ,098 ,818 ,241 ,354 ,006 ,001 ,001 ,000 ,002 .* Correlation is significant at the 0.05 level (2-tailed). ** Correlation is significant at the 0.01 level (2-tailed).


1

Figure 20. BERD versus Value added specialisation in all sectors. Bulgaria. Based on values of 2003.

Community services

Financ. Interm

Other Business act

Fabricated met

R&DPharmChemicalsMachinery

Electr. Equip

Electrical mach

Instruments

IT Services

Food

Furniture & rec

AgricultureTextiles

-100

-50

0

50

100

-100 -50 0 50 100

BERD

Value Added

Notes: Specialisation index with EU15 as reference. Max specialisation: + 100. Min. specialisation: -100. Source: Own calculations

Figure 21. BERD versus patents. Specialisation indexes. Bulgaria. Based on values of 2003.

Fabricated metMachinery

TextilesElectrical mach.

ChemicalsInstruments

Electr. Equip

Food

Pharm

-100

-50

0

50

100

-100 -50 0 50 100

BERD

Patents



2

Figure 22. BERD versus exports. Specialisation indexes. Bulgaria. Based on values of 2003.

Pharm

Fabricated met

Electr. Equip.InstrumentsTextiles

Machinery

Chemicals

FoodElectrical mach.

Agriculture

-100

-50

0

50

100

-100 -50 0 50 100

BERD

Exports



1

Table 3: Specialisation Profile

Red numbers: Decrease specialisation from specialised to non specialised

Blue numbers: Increase specialisation from non specialised to specialised

Note: The ISIC Sectors 2423, 28, 65-67, 73, 75-99 are also specialized in BERD, but due to non- disposal of data for year 1997, no trend can be specified.

Fast growing sectors >4.9%

Medium-Low growth sectors =<4.9%

Declining sectors <0

Areas of specialisation

Increase Specialisation

Stable Specialisation

Losing Specialisation







Specialisation BERD 74; 72; 15-16; 32; 33; 29; 31; 17-19;

Specialisation Patents

2423;

15-16; 24ex2423; 30; 32; 33; 36 35;

Specialisation Value Added

352+359; 60-63;

23; 2423; 50-52; 72; 73; 74

01-05; 26; 40-41; 64;

10-14; 15-16; 24ex2423; 27; 29; 351; 65-67; 17-19;

Specialisation Employment

2423; 352+359; 60-63;

01-05; 40-41; 64; 15-16;

24ex2423; 25; 26; 27; 29; 30; 31; 351; 17-19;

Specialisation Exports

23; 2423; 01-05; 26; 27; 28; 31;

10-14; 15-16; 24ex2423; 351;


2


1

EXPLANATORY NOTES ISIC v3 codes and sector description Agriculture 01-05 Mining 10-14 Food 15-16 Textiles 17-19 Wood & Publishing 20-22 Petroleum 23 Chemicals excluding pharmaceuticals 24ex2423 Pharmaceuticals 2423 Plastics 25 Non-metal minerals 26 Basic metals 27 Fabricated metals 28 Machinery nec 29 Office machinery 30 Electrical mach. 31 Electronic equip. 32 Instruments 33 Motor vehicles 34 Ships 351 Air 353 Transport nec 352+359 Furniture & recycling 36-37 Water & electr. 40-41 Construction 45 Trade 50-52 Hotels 55 Transport 60-63 Telecoms 64 Financial intermediation 65-67 IT services 72 R & D 73 Other Business activities 74 Community services 75-99


2

How to read specialisation profile figures Plotting specialisation indexes against each other is a method for visualising differences in specialisation patterns. The most interesting analytical dimension in this report is comparing business enterprise intramural R&D expenditure specialisation patterns with specialisation patterns in value added, employment, exports and technological specialisation (patents). The result of the plots is four distinct specialisation quadrants showing:

1. Sectors with neither specialisation in BERD nor in the other analytical dimension (lower left quadrant)

2. Sectors with a specialisation in BERD and in the other analytical dimension (upper right quadrant)

3. Sectors with a specialisation in BERD but none in the other analytical dimension (lower right quadrant)

4. Sectors that display a specialisation in the other analytical dimension but not in BERD (upper left quadrant)

If there is a good match between BERD and, say, value added specialisation patterns we expect to find all sectors either in the lower left or in the upper right quadrant. Sectors in the upper left or in the lower right of the graphs indicate anomalies, that is, specialisation in one dimension and non-specialisation in the other. If there are many sectors in these quadrants the graph indicates lack of correlation between BERD and, say, economic specialisation.

Figure 23: BERD and Value Added specialisation – an example

Sectors with aspecialisation in BERD

but not in VA

Sectors with bothBERD and VAspecialisation

Sectors with aspecialisation in VA

but not in BERD

Sectors with nospecialisation in BERD

and VA

BERD

Valu

e Ad

ded 100

100

-100

-100

-50

-50 50

50

Strengthening the strengths?

Efforts concentrated in niches?Opportunities for catching up?

Vulnerable competitiveposition?

Neglected sectors?Further decline in the future?

Documents

COUNTRY SPECIALISATION REPORT - Europa · equipment, office machinery, pharmaceuticals and chemicals. Moreover, in almost all of the above sectors it appears that Bulgaria increased