Hristoslav Angelov, Analyst for the Federal Social Security Administration

- Mr. Angelov, your idea to set up a state business accelerator sounds a little exotic to Bulgarian economists. What is innovative about it?
- The idea itself is not particularly original. This is a "business angel" or a programme based on which ideas, scientific discoveries, innovations, technology may be state-subsidised. The final aim is the economic implementation of the scientific and technological discoveries. The companies established via the state accelerator must operate in Bulgaria and should not burden financially the taxpayers. They should also offer competitive prices, goods and services on the Bulgarian market.
I think the state business accelerator must operate under the joint jurisdiction of the President and the Prime Minister in order to reduce the possibility of abuse or politicisation of its activity.
The accelerator would significantly reduce the transaction costs which inventors and entrepreneurs face in the testing, legalisation, funding and incorporation of their projects. Furthermore, their varied associations with the state would eliminate any potential threats of extortion, theft of intellectual property and unfair competition.

- Critics will object that the idea is similar to the state-planned sectoral policy in the past or to state protectionism in Western Europe. How would you respond?
- My idea, of course, attracted negative comments when I presented it for the first time to my colleagues. The comment was that it denies free- market principles and the market economy.
According to another market principle, the state should allow pension funds to invest in a regulated manner a part of their funds in the Bulgarian economy. Contrary to conventional economists, I believe that an economy grows when it invests a part of its funds in the creation of productive assets and the acquisition of high-class technology. The printing of money does not promote economic growth. I propose that the savings of Bulgarians be directed to the fields covered by the government business accelerator and there's nothing non-market about this concept. The third pro-market element is related to the creation of an open labour market, including Bulgarian citizens abroad and those of Bulgarian origin. It is an unlimited source of staff. Thus, the private sector which is experiencing shortages of a definite range of specialists can be stabilised. Besides, the plan does not provide for the setting up of new monopolies in the sector.

- How will the business accelerator be funded? Have you envisaged budget sources?
- The setting up and funding of the business accelerator must not burden the budget. State-owned resources may simply be used more efficiently and productively. The first source is the state innovation fund which exists already and should encourage the development of small and medium-sized business enterprises. The state has not used these facilities effectively. The funds for the economic implementation of the projects subsidised by the state accelerator will come primarily from the private sector. There are several ways for this to happen. The most obvious of these is the trading on the Bulgarian Stock Exchange (BSE) of the shares of the companies set up by the accelerator. The GERB government could attract micro investment from a broader investor base ("crowd-funding") via the legalisation of "investment clubs".

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