A High-tech Hit In The Core*
10 September 2010
The news about the new factory of Quorus Venture for electric vehicles in Stara Zagora, Bulgaria has finally come to demonstrate that it is the right investment destination for such binding and long-term investments in innovative sectors of the economy carried out by serious and sophisticated investors. Quorus Venture is active in productions relatted to green technologies of the future, modern energy sources and development of machinery for new technologies for waste products.
This is the type of news that the Government should encourage and seek to generate itself. And if until now, Bulgaria was known for a number of cliched sector, with rapid return parasitic on the natural resources of the country monetizing power or massive subsidies, the country’s gradual return of smaller niche scenes of high technology and innovation is on the agenda.
The decision the factory of Quorus Venture to be located precisely in Bulgaria hardly be mainly due to grants for European programs. Anyway, they are cumbersome, difficult to absorb and lead to the loss of flexibility that is critical in today’s dynamic world.
This investment, mostly demonstrates expectations for a stable fiscal and financial environment, or simply – keeping the tax levels. It is assumed that the investor expects full support from local and central governments for smooth project execution without administrative and legal obstacles at any level.
The assembly of any high-tech machinery and equipment is a complex initiative, requiring impecable know-how and highly qualified personnel with high pay levels. Other things being equal this highly-qualified staff is cheeper to keep at the Bulgarian ten percent flat tax environment than in 40%+ in old Europe.
The project implies the existence of a pool of human resources and existing infrastructure, such as the high-tech city from our past should have.
With its key location, and free industrial sites Stara Zagora is a natural hub for this kind of high-tech industries. The region enjoys a growing population and a more dynamic economic activity compared to the average for the country.
Due to its exemplary role Quorus Venture project must be put under the personal nourishment of the highest level from the first sod until whenever needed. It must be used as an example of a new pattern of behavior and attitude of the Bulgarian state to the sector’s future.
The project is a serious signal that the country’s attractive tax environment should be maintained and will not be sacrificed for cheap and populist social considerations, even if this implies a serious reform of public spending.
NB: The corporate and personal tax burden in the country is flat at 10%.