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Technology Partnerships Between The UK And Central And Eastern Europe: Science And Innovation Network Impact Story

15th October 2024

Photograph of Technology Partnerships Between The UK And Central And Eastern Europe: Science And Innovation Network Impact Story

Countries in Central and Eastern Europe offer a significant opportunity for science, innovation, and technology partnerships with the UK.

The 9 countries of Central and Eastern Europe (CEE) offer a significant opportunity for science, innovation, and technology partnerships with the UK. Together, the region's combined GDP is over €2 trillion - an economy of emerging innovators leading a tech revolution (the region has increased its enterprise value since 2017 by 7.6 times).

This is driven by each countries' effort to combine their science and technology expertise and skilled workforces (Bulgaria, Hungary, Poland and Romania make up 4 of the 6 EU countries in the Top 25 countries of STEM (science, technology, engineering, and mathematics) excellence) together with traditional strengths in manufacturing, IT and science.

The priorities of the UK's International Tech Strategy align with pockets of excellence across the region. Austria, for example, is the fourth largest producer of semi-conductors with expanding supply chains through Czechia and Bulgaria, Croatia's unicorns drive 4% of the country's GDP and Poland and Czechia's retention of 90% of their startup enterprise value show the strength of the emerging ecosystems. A recent report estimated that AI would further boost the regional economic value by €100 billion.

UK Science and Innovation Network (SIN) teams in Central and Eastern Europe are working to communicate these opportunities to UK stakeholders and build connections. The appetite to work with the UK is high - during the previous Horizon Europe programme, the UK was among the top partners of choice for CEE researchers.

Following the UK’s reassociation to Horizon Europe and Copernicus, we are keen to maintain and strengthen those connections. Our events on tech, showcased below, all help to communicate and encourage collaboration while engaging on policy approaches that will be critical to the safe and secure emergence of critical tech.

Impact
Semiconductors
In January, SIN organised a high-level roundtable on semiconductors to connect Bulgarian and UK stakeholders looking to develop cooperation and exchange approaches on semi-conductors.

Semiconductors is a priority sector for the UK, in the context of the UK Semiconductors Strategy and Bulgaria is recognised as partner in this area under the UK-Bulgaria Strategic Partnerships Agreement.

Why Bulgaria?
Bulgaria is rapidly developing opportunities in the sector, building on its ICT strengths (contributing over 7% of GDP, the highest level among CEE countries). This is a legacy of chip manufacturing (by the late 1970s, Bulgaria was one of the top 10 biggest electronics manufacturing countries in the world).

In 1989, Bulgaria exported more computers than all other countries in CEE with 11% of workers employed in the production of computers and electronics. Today there are over 400 microelectronics, many supporting the growing demand for chips from Bulgaria’s automotive industry.

Bulgaria is positioned well to become a supply chain hub under the EU Chips Act - it has attracted investment by global companies such as Melexis (producing equipment and critical materials for semiconductor fabs) and Global Foundries and the government is investing in R&D centres to support the developing capacity.

The roundtable enabled government, industry and academic contacts to share government strategy and approaches, including on skills development, explore potential commercial R&D and academic collaboration opportunities. This has led to an opportunity to work with the Bulgaria Ministry of Innovations and Growth as they prepare a report and recommendations to develop the sector in 2024, the potential to develop an accelerator programme based on the UK’s Chipstart programme and a memorandum of understanding signed between the Bulgarian Association of Electrical Engineering and Electronics (BASEL) and TechWorks UK.

Artificial intelligence (AI)
In February, SIN hosted the first UK-Romania research conference with a focus on AI to help us better understand emerging opportunities in AI research with Romania. Bringing together contacts from academia, SMEs, NGOs, and senior officials.

The event was part of series of SIN initiatives on AI which started in 2021 with a UK-Romania high-level dialogue in London, an online workshop on national AI strategies, and a visit to present the Romanian government’s AI advisor, "Ion", to the UK. The roundtable helped secure the topic as part of the forthcoming UK-Romania Bilateral Forum in 2024 within the frame of the Strategic Partnership Agreement signed in March 2023.

Why Romania?
A surge in AI startups and a rapidly developing ecosystem is drawing significant international attention. Romania’s IT and cyber sector drives a significant proportion of GDP - Romania is number one in Europe and sixth in the world in terms of the number of IT professionals. Companies such as Amazon, Hewlett-Packard, Microsoft and Oracle have long operated in Romania’s IT sector, which generated €9 billion in 2022.

In March, SIN supported a wider delegation of AI stakeholders from Czechia, Slovakia and Poland to the UK to attend the Alan Turing Institute AI Expo 2024, using the opportunity to share policy approaches on AI regulation, build connections for AI influencers in the region, and connect researchers.

Tech mapping
To find out more about opportunities across the wider Central and Eastern Europe region, read our report on tech opportunities commissioned by SIN and created by researchers at Public International (a UK-based tech insights organisation). The report provides country by country snapshots on why CEE is important to the UK under each of the 5 priority technologies.

Technology and Innovation in Central and Eastern Europe

PHOTO
The first outcome of the UK-Bulgaria meeting on semiconductors was the signing of a memorandum of understanding between TechWorks (UK) and BASEL (Bulgarian Association of Electrical Engineering and Electronics).