Lack of funding, brain drain keep Romania among most modest innovators in the EU

Romania currently has one of the lowest research and development (R&D) intensities in the European Union, at a value of less than a quarter of its 2 percent target for 2020, according to a recent report from the European Commission. Romania is in fact ranked as a modest innovator and has the lowest R&D intensity in the EU and a very low level of business R&D activity. Despite hosting a large number of PhD graduates, Romania suffers from extensive brain drain, which left the country with a pool of researchers of high average age, and limited career prospects, according to the EC. Over the last decade, R&D intensity in Romania increased from 0.37 percent in 2000 to 0.58 percent in 2008, only to drop back to 0.48 percent in 2011, the country report found. The key challenge for Romania is its low level of competitiveness, a challenge which has significant consequences for the R&I system. Romania’s economy is characterized by the prevalence of low- and medium–technology sectors, with a weak demand for knowledge and an underdeveloped innovation culture. The Romanian R&I system is primarily public – based, with only 38.3 percent of research performed by the business sector, whereas the EU average is 61.5 percent. The Romanian research and development system is also very fragmented, with a large number of research performers and a lack of critical mass of research results. On top of it, Romania is suffering a net outflow of researchers, and it is estimated that 15,000 researchers are currently working abroad. In terms of research excellence, Romanian universities are underperforming in all major international rankings and their scientific production and staff composition is less internationalized compared to other EU states. “An increase in international scientific co–publications and in the share of national scientific publications in the top 10 percent most cited publications worldwide has nevertheless been noticeable over the last 10 years,” according to the report. However Romania has several scientific and technological strengths, among which in automobile production, information and communication technologies, new production technologies, nanoscience and nanotechnologies, and security. The EC also notes that there is a slow take–off in ‘high–tech’student start–ups, which would need to be boosted by measures such as financing and mentoring services vouchers. There is a special open operation for innovative start–ups and spin–offs to support the implementation of research and innovation results. Seed capital is beginning to become available, but high risk business angel investment/venture capital is still at a very low level and could benefit from being more easily matched by funding, for instance from an accelerator/investment fund for medium–high and high–tech ventures, according to the EC. The full country report on Romania is here (in pdf, in English).