EU funds for Romania’s research and development sector: over EUR 600 mln available by 2013

Investment in research and development is one of the essential ingredients required to generate economic growth. EU funds are available for R&D activities as well, and Romania-Insider.com looks at the main features of the EU funds for research and development, as well as at several foreign investments in the Romanian R&D sector. By Alexandra Fodor Romania spent around EUR 551 million on research and development last year, according to recent data from the National Institute of Statistics. Last year, the R&D expenses represented 0.48 percent of the GDP. The EU countries usually allot about 2 percent of the total GDP to R&D activities, a percentage that Romania intends to achieve by 2020. Companies in Romania can get EU funds for research and development activities using the Axis no.2 Research, Technological Development and Innovation for competiveness of the operational program “Increase of economic competitiveness”. For the period 2007-2013, the financial allocation through the Axis no. 2, is of about EUR 646 million. So far, universities, hospitals as well as private companies have applied for this source of financing. Honeywell Romania, Infineon Technologies Romania, Elerom, Movidius, S.C. Monoelect, SC Azoth Tehnologies, Laromet, Helco, Electromedical Industries SRL, S.C. Medtex Design & Production, Ecofix, Tera Impex SRL, Imatech Trade & Imaging SRL, Optoelectronica 2001 S.A, MB Telecom Ltd, the Institute of Biochemistry, The Clinical Hospital Colentina, the Institute of Macromolecular Chemistry have all received EU funding for research and development. The European funding is allotted through the European Regional Development Fund and the managing authority is the National Authority for Scientific Research. In the research and development sector companies can apply for projects such as investment in R&D infrastructure, industrial research and pre-competitive development activities, promoting innovation in companies and developing networks R&D centers. The beneficiaries can receive financing of up to EUR 5 million per project. Investments in the Romanian R&D sector Romania is one of the main destinations for investment in the Eastern European region for R&D projects, which also include software development and product development. Many of the well known international companies, like Oracle, Renault, HP, WIPRO, Intel, Siemens, Ina Schaeffer are already present on the local market, not only with representative offices but also with R&D and support centers. Oracle and Renault have opened in Romania R&D centers for technology that employs thousands of local engineers. In collaboration with HP, the S&T Group have developed in Romania the HP Software Competence Center that creates an S&T HP Software best practice. In 2006, WIPRO decided to set up a BPO center in Bucharest for IT services covering the East European market.