Challenges
EU has set an ambitious strategic framework for the transformation of the construction sector into resource-efficient, innovative and sustainable one. The construction ecosystem in the EU employs nearly 25 million people and generates 9.6% of the added value in the economy. The construction ecosystem is dominated by SMEs – 99.9%. For reforming the sector, the EC has put in place numerous strategies and initiatives with direct impact on the construction sector - The EU Climate Adaptation Strategy, The New CE Action Plan, Energy Efficiency Directive, Energy Performance Building Directive, Construction Products Regulation, Pact for Skills etc.
The construction sector is an intersection of all economic activities. The efforts to increase innovation and competitiveness, support reskilling and upskilling, adopt circular processes and support digitalization are of utmost importance. This is extremely valid for the Bulgarian construction sector in which small companies employ 86.6% of the work force and the challenges related to digitalization and skills appear even more pronounced.
The transformation of the Bulgarian construction sector to a more digital and resource efficient one is of key importance for achieving the commitments to the EU Green Deal. Therefore, the Ministry of Regional Development and Public Works (MRDPW) initiated the process of developing the National Strategy for Digital Transformation of the Construction Sector 2030 and Roadmap for its implementation. The transformation needs to happen on multiple levels – public and private, local, regional and national and to integrate multiple topics – circularity and digitalization, new knowledge and skills, adoption of new technologies. The mobilization of additional expertise was needed, and this is where the EDIH in construction stepped up to actively support the process by leveraging expertise in defining the key measures of the Strategy and appointing it to support their implementation on national level.
Solutions
Established by 11 leading nationally represented organisations, the EDIH is recognized as the most relevant actor in building digital transformation capacity in the construction sector in Bulgaria. This public recognition triggered a dialogue between the EDIH and the MRDPW for provision of expert support in drafting the National Strategy for Digital Transformation of the Construction Sector 2030, in specific, the areas within the EDIH’s expertise: one-stop shop for public and private support for innovation adoption, twin transition, skills development – all of them of highest relevance for the Strategy. During the process, the EDIH participated in working group meetings, analysed the draft strategy and provided suggestions for its best-fitting role and support in the implementation. As a result, in the adopted National Strategy and the Roadmap by the Council of Ministers on 6th April 2023, the EDIH takes the role of national integrator of science and industry in the process of transformation of the Bulgarian construction sector and is appointed responsible for the implementation of “S.O.2.1 Development of the digital capacity and skills of the work force in the construction sector” and “S.O.2.2 Activities related to innovation in the construction sector”.
The inclusion of the EDIH as a key actor in the Strategy is in practice novel approach for the Bulgarian policy making – it aims to address the digital transformation of the construction sector holistically. This involvement will:
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Bridge expertise gaps in innovation adoption in the construction sector on national level
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Leverage policy making processes on national and EU level
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Establish common national vision on skills development for the construction sector
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Speed up market realization of innovation in the construction sector
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Streamline national and international funding opportunities and improve access to them for SMEs
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Provide better access to international networks, platforms and shared infrastructure for companies.
Results and Benefits
By taking the role of national integrator of science and industry in the process of transformation of the Bulgarian construction sector, the EDIH’s role in the implementation of the Strategy becomes central for achieving Strategic Objective 2 Sustainable and Competitive Construction Sector. The results and benefits achieved by the EDIH in this role are related to the fact that until 2030 the EDIH becomes:
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Main national provider of specialized capacity building formats in the field of digital technologies for the construction sector
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Main point for access to specialized research infrastructure and expertise for pilot testing of innovation and digital technologies aiming at faster market realization
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Main point of contact for information regarding funding mechanisms for SMEs in national and international programmes for pilot testing of digital technologies and implementation of innovation projects.
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Supporter for access to partner networks, innovation platforms and shared infrastructure
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Main orchestrator of the topics for collaboration between science and business with focus on digitalization of the construction sector
Following the time horizon for implementation of the Strategy and the Roadmap, the timeframe of these activities stretches until 2030 (well beyond the funding period of Digital Europe) thus establishing solid public-private partnership between the EDIH and MRDPW in the realization of the national priorities. The activities are envisaged to be co-funded by Research, Innovation and Digitalization for Smart Transformation Programme 2021-2027. Additional sources of funding will be sought in the process incl. from the national budget.
Perceived social/economic impact
As a result of the strategic inclusion of EDICS in the implementation of the National Strategy for Digital Transformation of the Construction Sector 2030 and more specifically in Strategic objective 2 Sustainable and competitive construction sector, the following impact is expected:
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Increased competitiveness of the Bulgarian construction sector within the single market by implementation of innovation adoption processes, Building Information Modeling (BIM), access to research infrastructure and funding
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Implementation of green and digital technologies in the sector by exploiting the active role of the EDIH in the realisation of the Strategy
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Stimulation of digitalization and innovation in this sector by facilitating the dialogue between science and industry and establishing links to international networks
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Massive inclusion of BIM in higher education through qualified academic staff, new curricula, available hardware and software for students, apprenticeships and internships in BIM-oriented companies for all 9 HEIs teaching construction disciplines in Bulgaria (3000 students annually)
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Reskilling and upskilling of workforce – integration into VET system, functional web-based educational resources, interactive guidelines for the national BIM model
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Access to R&D infrastructure and expertise, consultancy to SMEs for access to finance, access to networks and partners for shared infrastructure, 2 pilot projects for BIM
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The digital transformation of the Bulgarian construction sector will contribute to the achievement of the EU strategic priorities on climate neutrality, circular models adoption and sustainable development
These socio-economic impacts directly link with the ambitions of the National Strategy Digital Transformation of Bulgaria 2020–2030, Impact Area 15: Territorial development, which defines the digitalisation of the construction sector as a main driver for boosting the principles of circular economy, energy efficiency and reduction of carbon emissions.
Lessons learned
During the process of participation in the drafting of the National Strategy for Digital Transformation of the Construction Sector 2030, the following lessons learnt were identified:
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Public authorities need time to build trust into EDIHs as reliable partners in policy making and strategic support – EDIHs are relatively new structures in the EU landscape and efforts are needed to secure that public authorities recognize their potential and expertise. A possible solution is to build a positive public image and central position of EDIHs, so public authorities can be confident that such collaboration will be of benefit. This can be supported by the responsible National authorities and the European Commission.
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Demonstration of specific capacity is key in public-private collaborations – EDIHs are expert pools in their essence, however provision of expertise on multiple topics can be a trap for the realization of efficient and structured dialogue. Therefore, it is effective to focus on 3-4 specific areas and provide expertise specifically for them.
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The combination of funding from different sources -(the Digital Europe programme and ERDF) can be an efficient way to secure long-term implementation of measures – EDIHs’ funding is secured through Digital Europe and in the case of Bulgaria, 50% through the Programme for Research, innovation and digitalization for smart transformation. However, due to the inconsistency in the applicable rules huge administrative burdens were caused and slowed down the operation of the EDIHs. The policy makers need to consider this and aveliate the rules, thus ensuring support to the EDIHs in their aim to provide of high-quality and tailor-made services.
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