Bulgaria is a small open economy in South-Eastern Europe. Like most of the Eastern Europe economies, in the early 90s Bulgaria experienced transition from a centrally planned economy and undergone market liberalisation. The economic growth has been significant in the service sector and the industry where substantial increase in the innovation activities has taken place. Most of the innovations relevant to improvement of environmental conditions, environmental protection, sustainable business and know-how transfer activities are imported as good practices implemented within the frame of EU LIFE and LIFE Plus programmes. Some eco-innovative activities are observed in energy efficiency improvement in housing, renewable energy sector and waste recycling. Business community is experiencing a raise of eco-certification; these trends are expected to continue. Thanks to dedicated initiatives one can expect development of eco-industrial parks, clusters, etc. in coming years in Bulgaria. The country has no specific national or local policy documents or programs targeting eco-innovation. Several other policy strategies (e.g. S&T, R&D, regional, energy, etc.) indirectly touch upon some eco-innovation promotion issues.
Eco-innovation needs and challenges in Bulgaria are associated with the country´s poor state of the environment (a result of intensive agricultural and industrial activities), energy inefficient buildings stock, growing prices for natural resources, intensified industrialisation and urbanisation, growing volumes of waste, and climate change. Nevertheless since 2004 the GHG emissions have been decreasing and the overall water quality in Bulgaria in the period of 1990-2008 gradually increased. More on: http://www.eco-innovation.eu/index.php?option=com_content&view=article&id=464&Itemid=52