What Can Be Learned About the Development of the Bulgarian Rose Oil Industry by Employing the Cluster Approach?

Abstract: This academic work discusses the factors which affect the development of the Bulgarian rose oil industry by undertaking a cluster approach. The author identifies a list of central, literature-driven factors derived from cluster approaches, which hypothetically influence the abovementioned agglomeration of rose oil producers and related organizations and institutions. Further on, he examines them empirically by conducting seven semi-structured interviews with key players from that economic sector. The purpose of this thesis is to contribute to a better understanding on geographical dependencies by providing a case study for the rose oil industry in the Rose Valley region, Bulgaria. The research finds that, indeed, there are some factors related to the cluster approach which affect the development of the rose oil industry. The most dominant are the labor market, fair competition, the evolution of the legislation and the scientific work and innovation. Nevertheless, the governmental institutions and the historical persistency of the cluster are viewed as liability. Moreover, the author recognizes a rather specific type of knowledge transfer between the key players which are part of Bulgarian National Association Essential oils, Perfumery and Cosmetics and those who are not. The study provides a model which illustrates these connections.