This paper summarises the arguments and counterarguments within the scientific discussion on the effects of R&D investment on the essential components of the economic development such as economic growth, competitiveness, labour market and inequality reduction. The main purpose of the research is to highlight the position of Bulgaria in the world economy concerning R&D development. In the article frame, the authors compared the R&D expenditures dynamics of Bulgaria and the EU28 by the prism of innovations in business and higher education. Systematisation literary sources and approaches for solving the problem indicated that R&D caused the changes in the job market that led to the necessity to adjust the university system. There is currently a lag. Methodological tools of this research were as follows: the method of processing quantitative data, content and comparative analyses, situational and sectoral analyses, and graphical dynamic analysis. The object of research is the dynamics of investments in innovations in Bulgaria and EU28. The emphasis is placed on the role of research centres, enterprises, clusters and education institutions in R&D development to assess the level of innovation achieved through R&D. The obtained results of an empirical analysis showed that the cluster approach raised R&D to a new level and helped to bring universities and business together. Rethinking of the public policies and investing in technology centres will help for the adaptation to the new realities of the labour market. The research results could be useful for employers, high tech research centres and universities. This study is expected to be the base for further studies dedicated to boosting economic competitiveness and social welfare due to the promoting implementation of innovations. Keywords competitiveness, economic growth, inequality, innovation, labour market, Research and development (R&D).

The COVID-19 pandemic forced national governments and administrations to seek flexible solutions to deal with the emergency. Thus, the main purpose of the current study is to design a model of a flexible methodology based on detailed flexible methodologies to make decisions and measures connected to COVID-19 pandemic to be effectively applied without the loss of meaning and within a short time. For the creation of the methodology, we used comprehensive desk research based upon a literature review in the period May 2021–November 2021. As a result, an expandable set of relevant methodologies for crisis management and flexible methodologies was identified, modeled, and formalized using a broad literature review and an innovative model of a flexible methodology for crisis management was created in accordance with standardized concepts, transforming them into secondary use models. Furthermore, an algorithm for taking measures and decisions in crisis conditions was designed. The next step is to implement the methodology, which is planned for future empirical research. The findings provide an innovative model of a flexible methodology that could be used by academic and business representatives, public institutions of central and local government, and private stakeholders.

Over the last two decades, economic relations have been marked by fundamental changes. Globalization, the fourth technological revolution, the global economic crisis of 2008 are only part of the challenges facing each national economy. Methods have been used to illustrate the dynamics of the time series by major economic indicators through graphical and tabular visualization tools. Cross-correlation analysis using statistical software is applied to investigate the relationship and the relationship between the indicators used. The survey was conducted in the context of Bulgaria and the EU28 over a ten-year period by economic sectors and demographic groups. In certain sectors, an increase or decrease in the overall trend during the study period is observed. The nature of jobs in terms of sectoral employment is clearly changing from primary and secondary to tertiary. There is a clear significant link between investment in innovation and lifelong learning on economic growth and the dynamics of the labor market. In today's rethinking economic doctrines, the need to redefine economic policies is crucial in order to find the right path to manage the economic system through innovation, to enhance wealth through sustainable economic growth and an efficient labor market.

Globalization and digitalization under the influence of the Fourth Industrial Revolution led to a change in all key sectors. The connection between education and the labour market under the influence of Education 4.0 is especially relevant. Changes in structural employment have brought to the fore the need for new skills. In this regard, the impact of globalization and digitalization on higher education institutions, their transformation under the influence of Education 4.0 and the impact on the labour market are considered. All this leads to the conclusion that the share employment by sectors is changing and education has to adapt to the needs of the labour market.

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