The innovation-based competitiveness of the Romanian economy in the framework of the Lisbon Strategy

In the Lisbon Strategy of 2000, the European Union set the goal to become the most competitive and dynamic knowledge-based economy in the world by the year 2010. In its quest for joining the European Union, Romania takes this goal as a natural step on its way toward successful accession and integration in the common European market.

The paper discusses the innovation framework in Romania as a factor for the country's economic competitiveness. The proposed framework is based on the most recent theoretical background underpinning the Lisbon strategy and its further developments. It describes both the role of innovation in the economic structure of a country, and the functionality parameters of the innovation system.

The paper explains the currently low competitive position of Romania - in comparison to the EU and candidate countries - by:

• the high concentration of research activities in the public sector
• the low budget of research institutions and the resulting decrease in the number of active researchers, and the moral outdate of research infrastructure
• youngness of venture capital in Romania
• lack of a significant amount of domestic capital resources and lack of working business incubators
• the non-practically oriented Romanian education, combined with the low share of the tertiary educated and the lack of investments in regular staff training at Romanian enterprises

Correspondingly, the strategic measures proposed for improving Romanian competitiveness through innovation are:

• establishment of a state fund for technology transfer and development and stimulation of private direct investments supporting innovation
• tax- exemption for importers of equipment and know-how and preferential tax payments for computer specialists and researchers
• raising companies’ awareness of the need for innovation as well as stimulating enterprises to invest in regular training of their employees by providing information for risks and advantages of research-and-development investments

The general conclusion made is that the enhancement of Romanian competitiveness through research, development and innovation activities will be a complex process in which all the social players - companies, state institutions, research units and venture capital providers - must actively participate.