The Role of Human Capital in SME’s Innovation Process in the Black Sea Economic Sectors

Abstract

Over the last ten years, Bulgaria has changed in political, economic and social aspects and marked rising economic growth, which reached levels above the average in the EU. However, marine-related businesses and Black Sea economic sectors need more in-depth research due to the growing impact of the blue economy. This research paper summarizes some of the results of the project „Developing Optimal and Open Research Support for the Black Sea' (DOORS)”*. The project's purpose is to link citizens, science, and industry for critical Black Sea regeneration, stimulating a new wave of ‘blue economy’ opportunities. It brings together expertise and technology to address the human and climate change impacts on damaged ecosystems. Examination of the small or medium enterprises’ innovation activities in the blue economy at the national (macro level) and regional level (micro level), and to develop a corresponding model describing these activities. The major idea is to focus on the business units’ innovation activities regarding their geographical and regional locations. Furthermore, this examination should also respect the companies’ assets, capacities, and their capabilities regarding the blue and circular economy, and a model describing and analyzing these activities should be developed. To fulfill this goal, a survey method was applied with the purpose of collecting primary empirical data regarding innovation activities and results of SMEs in Black Sea economic sectors. The paper examines the role of human capital for the SME’s innovation success and the factors for SME’s innovation activities in the region. The study seeks to find a relationship between innovations and investment in human capital and, consequently, to look for the application of the approaches of these concepts with the purpose of economic development and growth in the blue economy.