Entrepreneurship and Innovation in the Public Sector: Legal Framework and Perspectives for State-Owned Enterprises in Bulgaria

We examine the emerging field of public sector entrepreneurship. Results of a qualitative study conducted by the author on entrepreneurship and innovation in Bulgarian SOEs are presented. The role of the regulatory and legal framework is analysed. The main perspectives for the development of SOEs in terms of introducing innovation are outlined. The need to define the state‘s policy for financing innovation and securing innovation transfer among SOEs is identified. Prospects for the development of SOEs are linked to the creation of dedicated innovation funds in SOEs by allocating part of their profits, which are otherwise collected as 100% dividend. Expert management of SOEs and compliance with the governance mandate under the State-Owned Enterprises Law are crucial. Guidelines for future research are outlined.