Strengthening the Innovative Capacity of the Public Sector of Bulgaria

1. Public sector innovation and trust in Bulgaria

Abstract

This chapter describes why public sector innovation is necessary to generate trust in public institutions. It outlines the current milestones and actors for public sector innovation in the State Administration of Bulgaria.

The report is organised as follows: Chapter 1 covers the importance of innovation in building trust in Bulgaria’s State Administration1, crucial public sector actors, and milestones over recent years. Chapter 2 presents the OECD Innovative Capacity Framework (ICF), outlines the assessment methodology, summarises the main findings for Bulgaria and compares its innovative capacity with other countries. Chapter 3 thoroughly explores Bulgaria’s State Administration’s innovative capacity findings, outlining policy recommendations along key governance areas. Chapter 4 summarises the key challenges and recommendations for Bulgaria to enhance its public sector’s innovative capacity to improve the State Administration’s responsiveness and, as a result, foster greater public trust in public institutions.

The OECD Observatory of Public Sector Innovation (OPSI) defines innovation as something new or novel, implemented, and intended to positively impact a specific context, such as improved outcomes, satisfaction, or public trust. For instance, governments adopt innovative practices or develop innovative solutions to ensure services meet citizens' and businesses' needs, enhance efficiency in administrative processes, or enhance resilience through new methods such as strategic foresight. Public sector innovation can help meet several objectives: reach strategic goals (mission-orientation), prepare for future risks and challenges (anticipation), improve current operating systems (enhancement) and respond to citizens’ needs as they evolve (adaption) (OECD, 2022[1]).

1.1. Enhancing the State Administration’s responsiveness through innovation could help foster public trust in Bulgaria

After four decades under a centrally planned economy, Bulgaria embarked on a path of structural reforms and regional leadership that catalysed its transition to a market-oriented and upper-middle-income economy (World Bank, 2019[2]; OECD, 2021[3]). Since the adoption of the 1991 Constitution, the country has made significant strides in socioeconomic development, democratic governance, and the establishment of a multi-level governance system with strengthened institutions at both the national and sub-national levels (OECD, 2021[3]). Bulgaria's integration into the European Union (EU) in 2007 further accelerated economic and governance reforms, improving the country’s legal and institutional framework, and strengthening the fight against corruption (Kovač and Bileišis, 2017[4]; OECD, 2021[5]). Based on a parliamentary representative republic with a multi-party system, the country is considered a semi-consolidated democracy despite remaining issues of political corruption, organised crime, and discrimination of ethnic minorities (OECD, 2021[3]; OECD, 2023[6]; Freedom House, n.d.[7]).

Developing citizen-centred services and an innovative civil service is key to increasing trust in Bulgaria’s State administration. Amidst challenges of an ageing population, outdated infrastructure, and workforce skills shortcomings, Bulgaria’s progress in closing the social and economic development gap with more advanced economies has continued but at a slow pace (OECD, 2023[6]). The Bulgarian State Administration is under pressure to deliver ambitious reforms and policies to spur economic growth and improve living standards. This demands addressing institutional and governance weaknesses, including regulatory burden and corruption risks, within a politically unstable environment shaped by the current electoral cycle (IMF, 2024[8]; World Bank, 2024[9]; Bertelsmann Stiftung, 2022[10]). In this increasingly complex and volatile policy context, public sector innovation is essential to stay ahead of the curve and continue to deliver solutions that meet the public’s fast-changing needs. Thereby increasing government responsiveness and reinforcing trust in public institutions (OECD, 2017[11]; OECD, 2022[1]).

Bulgaria faces low and declining levels of public trust compared to both Central and Eastern European and OECD countries (Gallup World Poll, 2022[12]). Evidence from the Gallup World Poll (2017-2022) highlights a downward trend in public confidence in the national government, with trust consistently falling since 2017 and reaching its lowest point in 2022, when only 19% of respondents expressed confidence in the national government (Figure 1.1) (Gallup World Poll, 2022[12]). The trust gap compared to countries such as Armenia stands at 12 percentage points (p.p.) (whose innovative capacity is further compared in Chapter 2), 17 p.p. compared to Central and Eastern Europe, and 28 p.p. compared to OECD countries (Gallup World Poll, 2022[12]). Bulgarians hold a critical view of their government’s ability to address critical national problems, demonstrate low trust in major institutions, and believe that political and administrative elites are chosen based on personal connections (BTI Transformation Index, 2020[13]; BTI Tranformation Index, 2024[14]). Additionally, dissatisfaction with the State Administration’s effectiveness has also grown. Evidence from European Values Study (2020) shows that the share of respondents who file complaints with institutions has increased to 49%, compared to 32% to 33% in 2006 and 2007 (BTI Tranformation Index, 2024[14]).

Figure 1.1. Confidence in national government

Share of respondents who indicate confidence in national government, 2007-22.

Note: Figure refers to the share of respondents who answered yes to “In this country, do you have confidence in each of the following, or not? National government; Local government; Civil service; Courts and Legal System; Parliament/Congress”. The only available answers were yes/no/don’t know. Due to data availability, the years on the x-axis do not follow a regular interval pattern. Value for Bulgaria in 2007 corresponds to 2006 measurement.

Source: Gallup World Poll, 2007-22.

Statlink

Government responsiveness is one of the strongest drivers of trust in public institutions in OECD countries. The 2024 OECD Survey on Drivers of Trust in Public Institutions (2024 OECD Trust Survey) assesses people’s trust levels in various public institutions and their perceptions of government reliability, responsiveness, integrity, fairness, and openness in 30 OECD countries (see Table 1.1). While there is no data for Bulgaria in this OECD study, analysis of this data reveals which aspects of public governance are most strongly correlated with trust in public institutions. This information helps guide governments in selecting policy actions that are most likely to foster higher trust. In particular, confidence in the government’s capacity to use the best available evidence in decision-making, and to adequately balance the interests of current and future generations are likely to have the highest influence on trust in the national government (OECD, 2024[15]). Moreover, ensuring that people feel they have a say in what the government does is also associated with a higher likelihood of people reporting high or moderately high trust in the national government (OECD, 2024[15]).

Table 1.1. OECD Framework on Drivers of Trust in Public Institutions, 2021

Levels of trust in different public institutions
Trust in national government, local government, civil service, parliament, police, political parties, courts, legal systems and intergovernmental organisations.
Public Governance Drivers of Trust in Public Institutions
Competencies	Responsiveness	Provide efficient, quality, affordable, timely and citizen-centred public services that are coordinated across levels of government and satisfy users. Develop an innovative and efficient civil service that responds to user needs.
	Reliability	Anticipate needs and assess evolving challenges. Minimise uncertainty in the economic, social, and political environment. Effectively commit to future-oriented policies and co-operate with stakeholders on global challenges.
Values	Openness	Provide open and accessible information so the public better understands what the government is doing. Consult, listen, and respond to stakeholders, including through citizen participation and engagement opportunities that lead to tangible results. Ensure there are equal opportunities to be part of and participate in the institutions of representative democracy.
	Integrity	Align public institutions with ethical values, principles, and norms to safeguard the public interest. Take decisions and use public resources ethically, promoting the public interest over private interests while combating corruption. Ensure accountability mechanisms between public institutions at all levels of governance. Promote a neutral civil service whose values and standards of conduct uphold and prioritise the public interest.
	Fairness	Improve living conditions for all. Provide consistent treatment of businesses and people regardless of their background and identity (e.g., gender, socio-economic status, racial/ethnic origin).
Cultural, Economic and Political Drivers of Trust in Public Institutions
Individual and group identities, traits, and preferences, including socio-economic status; interpersonal socialisation and networks. Distrust of and disengagement from the system
Perception of government action on intergenerational and global challenges
Perceptions of government commitment to and effectiveness in addressing long-term challenges

Source: (Brezzi et al., 2021[16]).

An innovative civil service that is able to anticipate and respond to people’s needs is a significant driver of public trust in public institutions. The 2024 OECD Trust Survey shows that higher satisfaction with administrative services, legitimate use of personal data, protection of people’s lives in a large-scale emergency, and fairness in dealing with people’s application for services are associated with higher trust in the national government and civil service (OECD, 2024[15]). Moreover, increasing the ability of public agencies to embrace new ideas was previously identified as positively affecting trust in the civil service, encompassing the national, regional and local civil service (see Box 1.1) (OECD, 2022[17]). OECD countries such as Korea demonstrate success in this area through its Government Innovation Strategy, which emphasises enhancing government competence and institutional trust (OECD, 2022[17]). This strategy includes initiatives to enhance public servants’ innovation skills and actively involve citizens in service design and delivery.

Box 1.1. OECD Trust Survey 2024 Results: How public institutions respond to complaints and innovative ideas.

Public institutions that are open to public feedback and adopt innovative ideas are more likely to succeed in implementing policies, programmes, and services that correspond to people's everyday needs.

The OECD Trust Surveys show that public institutions in OECD countries could do more to improve openness and responsiveness to their citizens. In 2023, only 39% of people, on average across OECD countries, felt that a public agency would be improved if many people complained, and an equal share of people believed a public institution would likely adopt an innovative idea to improve public service (OECD, 2024[15]) (Figure 1.2). These percentages remained nearly unchanged from the 2022 OECD Trust Survey (OECD, 2022[17]). Those confident about public agencies adopting innovation are more likely to place high or moderately high trust in the civil service (OECD, 2022[17]) and local government (OECD, 2024[15]).

Figure 1.2. Public perceptions about complaints and innovative ideas.

Share of people who find it likely that the government improves services if many people complain, or that public institutions would adopt innovative ideas if they could improve public services, 2023.

Note: The figure shows the average share of the population who respond that it is ‘likely’ (responses 6-10 on a 0-10 scale) to the questions “If many people complained about a public service that is working badly, how likely do you think it is that it would be improved?” and “If there was an innovative idea that could improve a public service, how likely do you think it is that it would be adopted by the responsible public institution?”. OECD presents the unweighted average of ‘’likely’’ responses across countries.

Source: (OECD, 2024[15])

1.2. Innovation is becoming more critical to Bulgaria’s public sector

Bulgaria’s State Administration is beginning to drive and support public sector innovation, though the process is still in its early stages. Innovative policies and services are emerging, despite the State Administration’s hierarchical and conservative culture (European Commission, 2018[18]). These include programmes such as the Startup Visa for high-tech firms, the state-owned Sofia Tech Park, the electronic platform for digital education and learning Digital Backpack, the unified national administrative register BULSTAT, the eProcurement system, the new life episodes and business events approaches to service delivery, along with digitalised and simplified administrative procedures for citizen and businesses in the e-Government Portal (OECD, 2024[19]). While most of these initiatives are from top-down directives, Bulgaria is laying the foundations for more widespread innovation in the Administration.

While innovation is mostly associated with Bulgaria’s private sector, some strategic initiatives have laid the foundations for public sector innovation. These efforts have largely been driven by digitalisation efforts and the reduction of administrative burden. As shown in Table 1.2, the creation of the Ministry of e-Governance in 2022, along with the launch of the 2021-2027 Research, Innovation and Digitalisation for Smart Transformation Programme and the Ministry of Innovation and Growth in 2021, underscores Bulgaria’s commitment to integrate digitalisation and technological advancements into public sector processes. The main purpose being to promote efficiency, transparency, and citizen-centred services. Earlier steps include the adoption of the Concept for the development of artificial intelligence in Bulgaria until 2030 and the updated 2019-2025 Strategy for Electronic Governance in 2019, which emphasise a proactive perspective towards leveraging technologies to optimise governance and service delivery. Additionally, since 2014, Bulgaria’s foundational frameworks, such as the National Interoperability Framework and the Operational Programme for Good Governance, demonstrate efforts to streamline public sector processes to enhance effectiveness, setting a foundation for innovation in Bulgaria’s State Administration.

Table 1.2. Bulgaria’s most relevant public sector innovation milestones

The table below summarises key milestones for public sector innovation in Bulgaria over the last years.

Year	Milestone	Relevance
2022	Creation of the Ministry of e-Governance	The Ministry of e-Governance replaced the State eGovernment Agency (SEGA) to prioritise electronic identification, interoperability, digitalisation of registries, and improve digital services for citizens and businesses (European Commission, n.d.[20]).
2022	Launch of the 2021-2027 Research, Innovation and Digitalisation for Smart Transformation Programme (RIDSTP)	The RIDSTP was launched to develop scientific research and innovation to accelerate national economic development and to build a favourable digital environment, including the public sector’s digitisation processes (European Commission, 2023[21]).
2021	Launch of the 2021-2027 Innovation Strategy for Smart Specialisation (ISSS) of the Republic of Bulgaria	The ISSS is a strategic framework to leverage territorial capacities to promote sustainable development through research and innovation. It encompasses innovations aiming to drive societal and economic transformation based on data and knowledge while supporting Industry 4.0 and facilitating the green transition (OECD, n.d.[22]).
2021	Creation of the Ministry of Innovation and Growth	The Ministry of Innovation and Growth was established to develop, organise, coordinate, and supervise the implementation of the State policy on innovation, technological and economic development, and national growth (European Commission, n.d.[20]).
2021	Adoption of the updated 2019-2025 Strategy for the Development of Electronic Governance in the Republic of Bulgaria	The 2019-2023 strategy outlines priority measures and funding sources for strategy implementation, including the Registry Reform Concept to streamline registers in the public administration and enhance service quality (Republic of Bulgaria, 2019[23]).
2020	Launch of the Concept for the development of artificial intelligence in Bulgaria until 2030	The Concept offers a comprehensive policy vision for developing and using AI in Bulgaria. It identifies areas where it can have the most impact, such as infrastructure and data availability, research and innovation capabilities, knowledge and skills, and building trust in society (Republic of Bulgaria, 2020[24]).
2020	National Development Programme Bulgaria 2030	The National Development Programme is a top-tier strategic framework built around 13 national priorities to accelerate economic development, demographic growth, and reduce inequalities (Republic of Bulgaria, n.d.[25]). Within the programme, Priority 10 – Institutional Framework focuses on enhancing the institutional framework to reduce regulatory burdens, improve policy quality and predictability, strengthen judicial independence, and combat corruption, thereby enhancing the business environment and international competitiveness (Republic of Bulgaria, n.d.[25]). However, this priority does not mention public sector innovation) explicitly.
2014	Creation of the National Interoperability Framework (BNIF)	The BNIF for Information Systems of Executive Authorities aims to facilitate public sector operations and to increase public sector efficiency in Bulgaria by improving the quality of services provided to Bulgarian and EU citizens (European Commission, n.d.[20]).
2014	Establishment of Bulgaria’s 2014-2020 Operational Programme Good Governance (OPGG)	The OPGG allocates nearly €336 million to modernise public administration and judiciary transparency. This programme aims to reduce administrative burdens, enhance transparency, and support e-government initiatives to enhance administrative processes and reduce costs in areas such as e-procurement, e-health, and e-customs (European Commission, n.d.[26]).
2014	Public Administration Development Strategy 2014-2020	The Bulgarian State Administration Development Strategy 2014-2020 focuses on effective governance and the rule of law, governance in partnership with citizens and businesses, open and accountable governance, and professional and expert governance (OECD, 2022[27]). To enhance efficiency, the strategy prioritised implementing quality management systems, including the European Common Assessment Framework (CAF) (Republic of Bulgaria, n.d.[28]). The strategy mentions innovation in the public sector, primarily focusing on open data to boost innovation potential and optimise information resources without specific objectives (OECD, 2022[27]).

Source: OECD.

Bulgaria lacks a strategic framework and direct investments in public sector innovation. Despite several initiatives supporting innovation – particularly in research and development and innovation (R&D&I) and digitalisation agendas–, there is no systematic approach to supporting public sector innovation. Public sector innovation is not explicitly mentioned in Bulgaria’s National Development Programme Bulgaria 2030, and the previous Public Administration Development Strategy 2014-2020 only considered innovative practices in the context of open data. Interviewees from the public and private sectors recognise that to meet current priorities and keep pace with changing needs, Bulgaria should develop more strategic co-ordination and investment in public sector innovative practices from the central government (OECD, 2024[19]). This shift could not only enhance administrative efficiency but also better position Bulgaria’s administration to meet the evolving needs of its citizens and businesses through a more adaptive and responsive governance strategy.

1.3. Key actors for a dynamic innovation landscape

Bulgaria’s public sector has no PSI roles and responsibilities. Most of current stakeholders do not have specific public sector innovation (PSI) agendas or initiatives. Building on international best practices, Bulgaria could create a more cohesive PSI landscape. Table 1.3 outlines the main actors’ current roles and international examples of roles that Bulgaria could take on to enhance innovative capacity.

For instance, the Council of Ministers Administration (CoMA) is the central body responsible for co-ordination and decision-making in the State Administration (OECD, 2022[29]). Its Directorate for the Modernisation of the State manages efforts to enhance innovative capacity through a vision and action plan (OECD, 2024[19]). Its prospective function could involve acting as a strategic coordinator and cross-government hub for innovation efforts, along with fostering a culture of innovation through specific cross-government projects (see more in Chapter 3) (OECD, 2021[30]; OECD, 2024[31]). One example from OECD countries is Colombia's National Planning Department, which illustrates how central government bodies can support public sector innovation by advising on cross-government barriers and monitoring innovative capacity (Government of Colombia, n.d.[32]).

The Administrative Reform Council and the Ministry of Finances can play critical roles. The Administrative Reform Council focuses on improving administrative processes and strategic guidelines (Table 1.3) and could also give PSI policy advice and initiate reforms in innovation procurement or workforce strategy (OECD, 2022[27]). In France, the Interministerial Committee of Public Transformation defines and monitors action plans for transforming public services, demonstrating the potential of such bodies (Government of France, n.d.[33]).

Similarly, the Ministry of Finances, which lacks financial mechanisms to support innovation (OECD, 2024[19]), could become a financial enabler by aligning budgeting processes and developing funding mechanisms for innovation projects (OECD, 2017[34]) (see more in Chapter 3). Ireland's Department of Public Expenditure funds innovative public service projects is a good example of this approach (Government of Ireland, n.d.[35]).

Other ministries and institutions could take on new roles to promote PSI. As described in Table 1.3, the Ministry of Regional Development could act as a regional and local innovation facilitator by leading projects and collaborating with local authorities (OECD, 2019[36]; OECD, 2017[34]), similar to France's territorial innovation laboratories (Government of France, n.d.[37]).

The Ministry of e-Governance could continue to enable digital innovation (Republic of Bulgaria, n.d.[38]) through digital tools, interoperable processes, and capacity-building, much like Estonia's key e-government digital solutions (Government of Estonia, 2024[39]). The Ministry of Innovation and Growth could further bridge private sector innovation with public sector needs, promoting public-private partnerships and mission-oriented innovation (OECD, 2022[1]) such as Vinnova’s programmes in Sweden (Government of Sweden, 2020[40]).

The Institute of Public Administration could enhance its role as a capacity-building and knowledge hub, disseminating best practices and fostering a culture of continuous learning (Kaur and Buisman, 2022[41]) (see more in Chapter 3). Finally, actors in the innovation ecosystem, such as research institutes, associations, and universities, can further collaborate with the public sector to apply cutting-edge technologies and methodologies (OECD, 2022[1]). Finland's Innovation Fund SITRA exemplifies this approach through its partnership programmes (Government of Finland, n.d.[42]).

Table 1.3. Current PSI roles and examples from international practice

The table below summarises key actors for Bulgaria’s public sector innovation, what they do now and what they could do to enhance PSI based on international examples.

Actor	Current PSI roles	International examples of roles
Council of Ministers Administration	The Council of Ministers Administration constitutes the primary body in Bulgaria’s centre of government with responsibilities such as co-ordination, decision-making, and providing direct support to the Council of Ministers and the Prime Minister (OECD, 2022[29]). The Modernisation of the Administration Directorate proposes initiatives for administrative optimisation and transformation, while manage quality management systems (OECD, 2022[29]). Currently, it oversees efforts to enhance innovative capacity within the administration, focusing on developing a vision and action plan for public sector innovation, along with a competency framework with an innovation dimension (OECD, 2024[19]).	Strategic co-ordination and cross-government hub: Centre of governments or units in central government can act as the central body to integrate and coordinate public sector innovation strategies and action plans across the administration, as well as setting the tone for a culture of innovation in the administration (OECD, 2021[30]; OECD, 2024[31]). They can ensure alignment of innovation efforts with national priorities and incubating cross-government innovative practices and endorse their scaling-up (OECD, 2024[43]). Moreover, Human Resource Management (HRM) functions can enable innovation through competency frameworks and performance assessments. Examples: The National Planning Department of Colombia advises the President in public sector innovation efforts, identifying cross-government barriers and measuring innovative capacity (Government of Colombia, n.d.[32]). Furthermore, the Latvian Innovation Laboratory, held within the State Chancellery, brings together public employees who co-create solutions to address long-standing horizontal issues (OECD, 2024[43]).
Administrative Reform Council	As a consultative body under the Council of Ministers Administration, the Administrative Reform Council reviews and proposes strategic guidelines for administrative development and optimisation under the chairmanship of the Deputy Prime Minister and representation from all ministries (OECD, 2022[27]). Its focus includes improving processes in the administration and proposing strategic guidelines and policies to transform administrative structures and lessen regulatory burden (OECD, 2022[27]). However, the Council currently has no explicit initiatives or agenda on public sector innovation (OECD, 2024[19]).	Policy advisory and reform initiator: Councils of modernisation and administrative reforms can develop and propose specific public sector innovation policies and regulatory frameworks affecting innovation such as procurement, workforce strategy, etc. (OECD, 2017[34]; Kaur and Buisman, 2022[41]). They can review and advise on strategic frameworks and action plans to ensure its alignment with broader government objectives (OECD, 2022[27]). Example: The French Government has an Interministerial Committee of Public Transformation, chaired by its Prime Minister which defines and monitors the programme and action plan for transforming public services (Government of France, n.d.[33]).
Ministry of Finances	The mission of the Ministry of Finances is to maintain the public finances of the country sustainable and transparent while assisting the Government in the building of an effective public sector and creating conditions for economic growth (Republic of Bulgaria, n.d.[44]). The Ministry currently does not have control or financial mechanisms to support public sector innovation (OECD, 2024[19]), which has been highlighted by previous evidence as a main constraint to the provision of innovative policies and services (Yordanova, n.d.[45]).	Financial enabler: Ministries of Finance and Central Budget Office can align budgeting processes by conducting spending reviews to ensure innovative initiatives are prioritised and allocated with corresponding resources (OECD, 2017[34]). They can also develop financial incentives such as funds or grants to support specific innovation projects (OECD, 2017[34]). Example: Ireland’s Department of Public Expenditure has a public service fund for innovative projects with a focus on cross-organisational digital transformation initiatives (Government of Ireland, n.d.[35]).
Ministry of Regional Development and Public Works	Ministry of Regional Development and Public Works is responsible for carrying out the reforms for the country’s development, territorial spatial planning, and establishment of technical infrastructure (Republic of Bulgaria, n.d.[46]). While no current agenda for public sector innovation is in place, previous initiatives such as “Complex Challenges - Innovative Cities” (2014) were developed by the Ministry. Funded by the EC INTERREG IVC programme, the initiative supported innovative sustainable development with a focus on local and regional authorities (ARC Fund, 2013[47]; Yordonova, 2022[48]).	Regional and local innovation facilitator: Ministries of Territorial Development often lead regional innovation projects and collaborate with local authorities to implement innovative solutions, disseminate best practices, and convene regions and municipalities to scale best innovative practices (OECD, 2019[36]; OECD, 2017[34]). Example: The Government of France, through their Investment for the Future Programme, is supporting 12 territorial innovation laboratories run by the Secretaries General for Regional Affairs (SGAR), decentralised State services, regional or departmental councils or local authorities (Government of France, n.d.[37]).
The Ministry of e-Governance	The Ministry of e-Governance performs activities related to issuing and introducing control-related policies, rules, regulations, and good practices in the field of electronic governance (Republic of Bulgaria, n.d.[38]). Among the new Ministry's main priorities are electronic identification, interoperability, digitalisation of registries, and increasing the quality of eServices for citizens and businesses (European Commission, n.d.[20]). Despite not having an explicit focus on public sector innovation, many of its current priorities are related to, and can be supported through innovative capacity.	Digital innovation enabler: Ministries of Electronic Governance can drive digital transformation with interoperability, data, and systems that enhance public sector efficiency and productivity across the innovation process (OECD, 2021[49]). They can implement innovative digital tools and processes to drive service delivery and citizen engagement (OECD, 2021[49]). Example: The Ministry of Economic Affairs and Communications leads e-governance initiatives in Estonia. They have implemented cutting-edge digital services, such as e-residency, digital IDs, and blockchain-based systems, setting the foundations for digital-based public sector innovation (Government of Estonia, 2024[39]).
Ministry of Innovation and Growth	The Ministry of Innovation and Growth develops, organises, coordinates, and supervises the implementation of Bulgaria's State policy in innovation, technology, and economic development and growth. (European Commission, n.d.[20]). Its focus is on building a competitive economy that will ensure the growth and development of Bulgaria's regions and promote and accelerate innovation and investment throughout the country and in all sectors of the economy (Republic of Bulgaria, n.d.[50]). While the focus on innovation relates to the private sector, many of its current challenges require the public administration to foster more innovative delivery of public policy and services.	Cross-sectorial innovation enabler: Ministries of Economy, or Science and Innovation can bridge private sector innovation with public sector needs, fostering a collaborative environment (OECD, 2022[1]).They can promote public-private partnerships to anticipate and prepare for future disruption and lead mission-oriented innovation initiatives on societal challenges such as climate change (OECD, 2022[1]). Ministries in these areas can support the public sector by investing and adopting technological and scientific advancements and best practices from the private sector (OECD, 2022[1]).. Examples: Sweden’s Vinnova enhances the country’s competitive edge and capacity for innovation in Government by bringing cross-sectorial innovation through challenge-driven innovation, policy labs, and innovation management support (Government of Sweden, 2020[40]). Furthermore, the Government of Chile, through their Ministry of Science and the Government Lab, have developed the prize-based programme, Public Challenges, to solve public institutions’ problems that require R&D (Government of Chile, n.d.[51]).
Institute of Public Administration	The Institute is an executive agency under the Council of Ministers Bulgaria and is the leading institution for the training of civil servants, including in the field of eGovernment, information and communication technologies and cybersecurity (Republic of Bulgaria, n.d.[52]). Its current strategic aims are to update the training offered and strengthen research and analysis to support good governance and modernisation of the administration (Republic of Bulgaria, n.d.[52]). The Institute is among the leading emerging actors in public sector innovation in Bulgaria. Its initiatives include an Innovation Network among the administration and a yearly competition of innovative ideas. Training in public sector innovation is also offered through the network and competition.	Capacity building and knowledge hub: Schools of Government can enhance the innovative capacity of civil servants through targeted training and development programmes (OECD, 2017[34]; OECD, 2017[53]). They can also disseminate PSI knowledge and best practices to foster a culture of continuous improvement and learning. Dedicated mechanisms such as innovation competitions, networks, and others can support this role (Kaur and Buisman, 2022[41]). Examples: The Australia and New Zealand School of Government (ANZSOG) carries out several initiatives to foster public sector innovation for both leadership and professional levels. Initiatives include short and long capacity-building programmes, capabilities measurement and research, and others (ANZSOG, 2020[54]).
Other actors in the innovation space	Bulgaria’s innovation landscape is currently mainly driven by private innovation with few initiatives dedicated to the public sector (OECD, 2024[19]). However, actors such as the Commission for Personal Data Protection, Institute for Computer Science, Artificial Intelligence and Technology (INSAIT), The Big Data for Smart Society Institute (GATE), The National Association of Municipalities, Sofia University’s Centre for Creativity and Innovation (NUCCI) among others, can also contribute with their capabilities and resources to develop innovative capacity in the State Administration.	Collaborative innovators: Actors in the innovation space can contribute expertise and resources to public sector innovation projects (OECD, 2020[55]). They can form partnerships with government institutions to apply cutting-edge technologies and methodologies for public sector improvement. Actors in the space can act as mentors, while supporting incubation and acceleration for specific public sector innovation initiatives (OECD, 2022[1]). Example: Finland’s Innovation Fund SITRA leverages several partnership programmes, both nationally and internationally, for agile experimentation and scaling-up of solutions to improve well-being and economic growth in the country (Government of Finland, n.d.[42]).

Source: OECD based on cited sources.

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[40] Government of Sweden (2020), Public Sector Innovation, https://www.vinnova.se/contentassets/9fab4046146e48379590a157481d3d7d/vr20-02eng.pdf.

[8] IMF (2024), Bulgaria: Staff Concluding Statement of the 2024 Article IV Mission, https://www.imf.org/en/News/Articles/2024/03/19/mcs031924-bulgaria-staff-concluding-statement-of-the-2024-article-iv-mission.

[41] Kaur, M. and H. Buisman (2022), Innovative capacity of governments: A systemic framework“, OECD Working Papers on Public Governance, No. 51, OECD Publishing, Paris, https://doi.org/10.1787/52389006-en.

[4] Kovač, P. and M. Bileišis (2017), Public Administration Reforms in Eastern European Union Member States: Post Accession Convergence and Divergence, https://www.fu.uni-lj.si/wp-content/uploads/2021/02/Public-Administration-Reforms_Kovac_Bileisis.pdf.

[15] OECD (2024), Building Trust in a Complex Policy Environment: Survey on Drivers of Trust in Public Institutions – 2024 Results, https://doi.org/10.1787/9a20554b-en.

[19] OECD (2024), Bulgaria’s Innovative Capacity Assessment - Workshops, Interviews and Survey Findings.

[31] OECD (2024), Centre of Government’s role in steering impactful public sector innovation - Internal document.

[43] OECD (2024), Steering from the Centre of Government in Times of Complexity : Compendium of Practices, https://doi.org/10.1787/69b1f129-en.

[6] OECD (2023), OECD Economic Surveys: Bulgaria 2023, https://doi.org/10.1787/5ca812a4-en.

[17] OECD (2022), Building Trust to Reinforce Democracy: Main Findings from the 2021 OECD Survey on Drivers of Trust in Public Institutions, Building Trust in Public Institutions, https://doi.org/10.1787/b407f99c-en.

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[1] OECD (2022), Tackling Policy Challenges Through Public Sector Innovation: A Strategic Portfolio Approach, https://doi.org/10.1787/052b06b7-en.

[3] OECD (2021), Decentralisation and Regionalisation in Bulgaria: Towards Balanced Regional Development, https://doi.org/10.1787/b5ab8109-en.

[5] OECD (2021), OECD Economic Surveys: Bulgaria 2021, https://doi.org/10.1787/1fe2940d-en.

[30] OECD (2021), Public Sector Innovation Scan of Denmark, https://oecd-opsi.org/wp-content/uploads/2021/03/Public-Sector-Innovation-Scan-of-Denmark.pdf.

[49] OECD (2021), The E-Leaders Handbook on the Governance of Digital Government, https://doi.org/10.1787/ac7f2531-en.

[55] OECD (2020), The public sector innovation lifecycle: A device to assist teams and organisations in developing a more sophisticated approach to public sector innovation, https://doi.org/10.1787/0d1bf7e7-en.

[36] OECD (2019), Enhancing Innovation Capacity in City Government, https://doi.org/10.1787/f10c96e5-en.

[34] OECD (2017), Fostering Innovation in the Public Sector, OECD Publishing, https://doi.org/10.1787/9789264270879-en.

[53] OECD (2017), Government at a Glance 2017, https://doi.org/10.1787/gov_glance-2017-en.

[11] OECD (2017), Systems Approaches to Public Sector Challenges: Working with Change, https://doi.org/10.1787/9789264279865-en.

[22] OECD (n.d.), Innovation Strategy for Smart Specialisation of the Republic of Bulgaria, https://stip.oecd.org/stip/interactive-dashboards/policy-initiatives/2023%2Fdata%2FpolicyInitiatives%2F99996668.

[24] Republic of Bulgaria (2020), Concept for the Development of Artificial Intelligence in Bulgaria Until 2030, https://www.mtc.government.bg/sites/default/files/conceptforthedevelopmentofaiinbulgariauntil2030.pdf.

[23] Republic of Bulgaria (2019), Updated Strategy for the Development of Electronic Governance in the Republic of Bulgaria, https://e-gov.bg/wps/portal/agency-en/strategy-policy/startegical-documents.

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[44] Republic of Bulgaria (n.d.), Ministry of Finance, https://www.minfin.bg/en/615.

[50] Republic of Bulgaria (n.d.), Ministry of Innovation and Growth, https://www.mig.government.bg/?lang=en.

[46] Republic of Bulgaria (n.d.), Ministry of Regional Development and Public Works, https://www.mrrb.bg/en/ministry/.

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[38] Republic of Bulgaria (n.d.), State e-Government Agency, https://www2.e-gov.bg/en/about_us.

[9] World Bank (2024), The World Bank In Bulgaria: Overview, https://www.worldbank.org/en/country/bulgaria/overview.

[2] World Bank (2019), Country Snapshot: Bulgaria, http://pubdocs.worldbank.org/en/123191554988616273/Bulgaria-Snapshot-Spring2019.pdf.

[45] Yordanova, D. (n.d.), Budget Expenditure as a prerequisite for an effective innovation policy in the public sector, https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwiJgrDu1KOHAxWscKQEHTIKBsoQFnoECBEQAQ&url=https%3A%2F%2Fwww.administracija-i-upravlenie.nbu.bg%2Fdownload%2F22-budjetnite-razhodi.pdf&usg=AOvVaw3_0csxoCT3vemrdhAL_2XW&opi=89978449.

[48] Yordonova, D. (2022), On the Innovative Governance of Public Sector Organizations in a Condition of Global Crisis and Bulgaria, http://tru.uni-sz.bg/tsj/Volume%2020,%202022,Number%203,%20Series%20Social%20Sciences/4_D.Yordanova.pdf.

Note

← 1.  The term “State Administration” refers to Bulgaria's central administration set out in the Administration Act (OJ L 129, 19.5.2017), which defines governance functions among specific structures and bodies. As part of this central administration, the Council of Ministers’ Administration (CoMA) is the strategic centre for formulating and coordinating national policies. (European Commission, 2023[56]). Ministries are the strategic bodies responsible for designing, planning, methodological provision, and monitoring sector policies (European Commission, 2023[56]). State agencies are ancillary administrative structures for the development and implementation of policies outside the competences of the ministries (European Commission, 2023[56]). Executive agencies are specialised administrative structures that provide administrative services (European Commission, 2023[56]). State commissions are specialised administrative structures with regulatory and control functions in the implementation of certain sector policies (European Commission, 2023[56]).