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The population of Europe and the world is constantly growing, and so does its need for food, more and more natural resources are exhausted, the environmental impact and the related climate change challenges are increasing. It is therefore essential to move to a new way of economic growth that is compatible with environmental protection and sustainable use of limited natural resources, while ensuring a much higher standard of living reducing poverty. The development and application of innovative biotechnology methods and processes in the agriculture, health, chemistry and energy sectors has recently been seen as one of the solutions to accelerate sustainable growth and development. By focusing more on scientific research and innovation, new products from biomass and new services needed for the development of the bioeconomy would be created, helping to reduce climate change, waste and create new jobs. According to the OECD, by 2055 the bioeconomy will be the key principle of development of the European economy. This means that the focus will be on production of renewable bio-resources in agriculture, forestry and aquaculture, and biomass will become the main source of industrial raw materials.The purpose of this Study is to evaluate the state and the potential of bioeconomy in Bulgaria, to take into account the best practices of the EU Member States and to present the conclusions and recommendations for the development of bioeconomy in Bulgaria and the innovation encouraging measures in this sector, to identify the areas of bioeconomy where the business cooperation between Bulgaria and other EU Member States has the greatest potential and to establish the measures for promotion of cooperation.Various research methods were used for the Study: general scientific abstraction, induction and deduction, analysis and synthesis, content analysis, statistical data analysis, econometric time series analysis, general equilibrium modelling, questionnaires, interviews, case studies and others.As the results the analysis of Bulgarian bioeconomy statistical indicators (gross value added, employment, labour productivity, turnover, exports, earnings and the number of economic entities in operation, including farms) was conducted according to the three first groups of activities attributable to bioeconomy - biomass production, fully bio-based manufacturing sectors and partly bio-based manufacturing sectors, and types of economic activities attributable thereto, which have also been referred to as subsectors in the Study.

ANALYSIS OF THE CONDITION OF BULGARIAN BIOECONOMY AND POTENTIAL DIRECTIONS OF ITS DEVELOPMENT