Establishment of a Standing Committee on Digitalization, Information Technologies and Innovation within the 45th National Assembly

TO

MS. IVA MITEVA YORDANOVA-RUPCHEVA

CHAIRPERSON OF THE 45th

NATIONAL ASSEMBLY

CC TO

MEMBERS OF PARLIAMENT IN THE 45th

NATIONAL ASSEMBLY

Subject: Establishment of a Standing Committee on Digitalization, Information Technologies and Innovation within the 45th National Assembly

DEAR MADAM CHAIRPERSON,

DEAR LADIES AND GENTLEMEN MEMBERS OF PARLIAMENT,

We, the undersigned industry organizations working with a focus on the development of the information and communication technologies sector and digitalization, the development of innovation, entrepreneurship, and high-growth startup companies, address you to express our support for the establishment of a standing committee on digitalization, information technologies, and innovation within the 45th National Assembly.

The ICT sector is the fastest-growing sector in Bulgaria, with a growth of 22% over the past three years and a 12% increase in employment. It is expected that by 2024, the revenues of the software industry will reach BGN 10.3 billion annually and account for 7.6% of GDP. At the same time, tax and social security contributions to the state budget are expected to exceed BGN 1.4 billion annually. Employment in the sector is also expected to surpass 60,000 people.

At the same time, as shown in the attached chart, Bulgaria ranks among the last in the European Union in terms of innovation index and consistently remains among the lowest-ranked EU countries in digital transformation of the economy.

There is an urgent need to complete the process of aligning Bulgarian legislation in the field of digital technologies with European standards, as well as to introduce legislative changes and initiatives to catch up with average European levels in innovation indicators and conditions for starting and developing high value-added businesses in Bulgaria. We need a transformation of the legislative infrastructure to achieve faster digitalization of the economy. We believe that such a committee will stimulate debate on improving Bulgarian legislation and creating models for prioritizing the ICT sector, innovation, and future industries.

The Committee on Digitalization, Information Technologies and Innovation will be the place where key European policy topics such as the Digital Services Act, Digital Markets Act, eIDAS Regulation, issues related to labor migration, strategic education in the sector, EU regulation on crypto-assets, the Scale up Europe initiative, and others can be discussed. By creating such a platform for debate at the highest level of government, Bulgaria will be better positioned to shape and defend its national interests in areas that will define our future in the coming years. It will also enable Bulgaria to take a more active role in European-level discussions instead of its previously passive position.

More specifically, the work of the committee could include the following topics:

Short-term topics:

  • E-government
  • Electronic identity – enabling private companies to provide electronic identification services
  • Attracting investment in high-tech industries
  • Development of the BEAM market on the Bulgarian Stock Exchange – increasing the fundraising threshold from EUR 3 million to EUR 5 million
  • Increasing highly qualified talent in Bulgaria
  • Attracting highly skilled professionals from abroad through optimizing the “Blue Card” procedure
  • Returning Bulgarians who have developed careers abroad
  • Improving education and qualifications in Bulgaria in the context of high value-added industries
  • Regulation of remote work
  • Ensuring stability in tax and social security legislation to provide predictability for ICT industry development, maintain Bulgaria’s image as an attractive IT destination, and reduce the outflow of highly skilled talent

Long-term topics:

  • Digitalization of all sectors of the economy and business segments to ensure transparency
  • Legislation related to high-tech industries
  • Attracting investment in high-tech industries
  • Improving the environment for angel investments
  • Development of venture capital and private equity investments
  • Increasing highly qualified talent in Bulgaria
  • Attracting foreign talent and returning Bulgarians from abroad
  • Improving education and qualifications in high value-added industries
  • Work on European Commission initiatives
  • “Startup Nation” standard
  • Establishing a business in one day in Bulgaria
  • Regulatory sandboxes for testing innovations
  • Improving conditions for stock option pools
  • Innovation in regulation
  • Digitalizing communication between business and institutions
  • Improving public procurement conditions in high-tech sectors and access for startups and scaleups
  • Digital Services Act, Digital Markets Act, eIDAS Regulation
  • EU regulation on crypto-asset markets
  • Scale up Europe initiative
  • Copyright
  • Business digitalization
  • E-government
  • Digital share registration
  • Improving labor legislation in high-tech industries
  • Digital employment records
  • Development of the startup ecosystem through:
    • Creation of testing environments (sandboxes)
    • Improving access to capital, talent, and deregulation
    • Promoting successful companies internationally
    • Establishing key partnerships with other digital champions
    • Targeted state policy for creating the first Bulgarian tech unicorn
  • Financial engineering in venture capital through:
    • Reform of voluntary pension funds
    • Incentivizing angel investments
    • Creation of a technology guarantee fund
  • Stimulating innovation based on scientific research:
    • Facilitating commercial activity of research centers and universities
    • Simplifying company creation processes and regulating intellectual property rights
    • Creating incentives for commercialization of research
    • Encouraging applied scientific research
  • Updating technologies in traditional industries
  • Creating incentives (tax, administrative, etc.) for Bulgarian enterprises to digitalize (preferably using Bulgarian technological solutions where available)
  • Strategic education in the sector
  • Establishing an adequate legislative framework to regulate the digitalization of education and avoid ad hoc solutions

Dear Members of Parliament, the establishment of a standing committee on digitalization, information technologies, and innovation within the 45th National Assembly is a fundamental step toward transforming the Bulgarian economy. An economy based on high value-added products and services is the key to Bulgaria’s future economic development.

Sincerely,

Dobromir Ivanov
Chairman of the Management Board
BESCO – Bulgarian Startup Association

Iliya Krastev
Chairman of the Management Board
AIBEST – Association for Innovation, Business Services and Technology

Dobroslav Dimitrov
Chairman of the Management Board
BASSCOM – Bulgarian Association of Software Companies

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