Innovation Ministry Working on Introduction of Tax Incentives for Research and Development

Dimitrina Solakova, Delyan Petrishki

Minister of Innovation and Growth Tomislav Donchev speaks at the 5th SEE ITS Summit, Sofia, October 2, 2025 (BTA Photo/Milena Stoykova)

Sofia,

02.10.2025 12:28

(BTA)

The State must send a signal that spending on research and development is a priority and that companies that invest more should enjoy tax incentives, Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev said here on Thursday. He was speaking at a discussion panel within the 5th SEE ITS Summit, the largest forum for innovation and technology in Southeast Europe.

"This is a conversation that has been going on for the last ten years without any real results. I think we are at an advanced stage of talks with our colleagues from the Ministry of Finance, and I hope that by 2026, if these talks are successfully concluded, the State will have sent such a signal," Donchev said.

During the discussion, the Deputy Prime Minister pointed out that within two weeks, the laboratory equipment available in the Centres of Competence and Centrss of Excellence, in which millions have been invested, will be accessible not only to universities but also to businesses, so that every entrepreneur and industrialist knows where it is located and can use it.

He stressed that Bulgarian industry is not aware of the established and available national innovation infrastructure. "The national innovation infrastructure has a terrible problem. We have invested tens of millions in digital laboratory equipment available to universities, but businesses are unaware of it," the Deputy Prime Minister explained.

Donchev emphasized the importance of education - both higher and vocational -describing vocational education as key to the future competitiveness of the Bulgarian economy, but noting that there are accumulated problems in this area that cannot be easily solved.

He believes that the lens through which weaknesses are analyzed needs to be changed, with attention being paid to admission to vocational programmes rather than to the outcome, when young people leave unprepared for the labor market.

"The problem starts at the entrance. Young people go to vocational high schools because they are easier to get into and they have not been accepted elsewhere, without a conscious need or desire to work in that particular field," said Donchev, adding that the fine-tuning of the State's contribution to the development and support of the economy lies in the field of education.

SEE ITS Summit 2025 is organized by the Association for Innovation, Business Services and Technologies (AIBEST). One of the key highlights of the programme is the presentation of the new Digitalisation 4.0 index by the SeeNext team, a long-standing analytical partner of the forum. The report will outline the development of digitalisation in Bulgaria and the region - from the share of ICT specialists in employment to the implementation of artificial intelligence and e-commerce. The forum will conclude with the SEE ITS Awards ceremony on Thursday evening, which will honour companies with the strongest contribution to the development of the sector in Southeast Europe.

/DS/