Romania is still in the efficiency-driven stage of development, when it must begin to develop more efficient production processes and increase product quality before becoming an innovating economy, according to Erste’s Convergence 2.0 report.
“The good news is that Romania has a large catching up potential to be unleashed. How fast it will do this depends on domestic policies improving the efficiency in its industry and in the long-run improving R&D and tertiary education in the country,” said Birgit Niessner, CEE Macro Research analyst with Erste.
However, Romania’s transition to an innovating economy also depends on external factors, on how fast western European states can recover.
“I do see Romania becoming innovative within the next 10 years if success stories like Dacia can be repeated in other sectors, as it is a recipe for success,” Niessner told reporters.