Main Issues of R&D Financing in Romania

Under current circumstances, the acute shortage of financial resources–particularly of budgetary resources – makes it very difficult to provide for the funding needed to carry on the activities of research, development and innovation (RDI), which are acknowledged, in all experts’ opinions, to play a crucial role in overcoming crisis and economic recovery. It is, thus, more important than ever that the policy makers be aware of the severe consequences that might come forth due to the lack of governmental support for these activities. A strong commitment to responsibly setting priorities, designing policies and instruments for performance growth, and to mindfully saving and using the limited resources available to RDI is, therefore, critical. The purpose of this paper is to analyse and assess how challenges related to the provision of financial inputs for research activities are addressed by the national research system, especially in the new condition of economic crisis. Its actors have to ensure and justify that adequate financial and human resources are most appropriately mobilised for the operation of the system. A central issue in this domain is to choose the appropriate modalities and instruments for transforming effects of the resource mobilisation in visible performance increasing of the R&D system and, also, for transferring the knowledge results into economy. The paper aims to analyse and assess specific barriers faced by the circulation of the financial flows that must be overcome by research and development actors.R&D financing, R&D financial flows, European Research Area

THE IMPACT OF R&D INVESTMENT ON PRODUCTIVITY

In the context of the national and European efforts directed to increasing ofR&D investment up to 3% of GDP, the debate on the effects of R&D investment has receiveda new impetus last time. Starting from theoretical and methodological approaches found inthe current scientific literature regarding this issue, the paper is focused on the empiricalanalysis of the effect of R&D investment on total factor productivity in Romania for the period1996-2006. The results obtained, in line with current research results in Romania or abroad,could be taken into consideration in political decision of R&D investment and in findingappropriate economic measures aiming to stimulate business R&D investment.R&D stock, R&D spillover, R&D effect on TPF

An asset-based approach of the Romanian research-development and innovation system

The present paper experiments a new model of analysis for the Research-Development and Innovation (RDI) field of research, namely the Asset-Based Development strategy or Appreciative Planning and Action, which unfolds at the community level the same core principle that Appreciative Inquiry Methods at the organizational level: strengths elevating, strengths combining, strengths extending systems. Following the four “D stages” (Discovery, Dream, Design and Destiny/ Deliver) pattern, the authors outlined many strengths and achievements of the Romanian RDI system in order to depict the positive trends, structures and mechanism, as well as to map out the main routes towards fulfilling a new vision. Building upon ideas, opinions, studies, interviews of different representatives of the research community (managers, scientists, professors, users etc) expressed in specialised literature, newspapers, journals, or in direct contact and dialogue with them, we intended this approach encompass the appreciative contributions of the main stakeholders: universities, public and private research institutes, the business sector, public policy-makers. In this complex and rather rigid RDI system, whose elements are heterogeneous institutions and communities, that interacting each other in a special environment such as a network structure, effective change is still to be brought by individuals who possess the necessary power to continue transform their mind and attitudes and thus to initiate, diffuse change and, influencing the RDI environment. This might be a viable way to improve, in a positive manner, the RDI system’s efficiency.Asset-Based Development; Appreciative Inquiry; Romanian RDI System; Appreciative evaluation; Appreciative intervention; Summative assessment

Convergence between the Romanian and the EU RD/I Systems

The globalisation of economy and communications, quick technological progress and its social implications led to the creation of the European Research Area, an important objective for the convergence of national RD&I systems. The monitoring of convergence process is achieved, since 2000, through a system of indicators, developed and refined every year, in order to make them consistent with new trends and requirements for relevant and systemic expression of the progress made in the RD&I field, in relation to both inputs and outputs and RD&I contribution as a determinant factor of improving national and European competitiveness. This paper analyses the progress made in the last six years in achieving the convergence of European RD&I systems, the factors that have accelerated or slowed down the process, laying the stress on Romania's position in closing the gaps that separate it from European average and from the leaders in this area. For this purpose, we tested a model for estimating the degree of convergence of the Romanian RD&I system with the EU27 system by the clustering method

Assessing the possibilities of filling the gap between Romania and the EU in the RDI field

In the specialised literature there are several established models and methods for measuring the time required to fill the gap between various systems, by assessing the rate of development required to reach a certain reference level in a determined period of time. These models are known as “catching-up models”. The purpose of this study is the assessment, based on such models, of the pace required to fill the gap between Romania and the EU in the R&D field as well as of the factors that condition the pace required to achieve convergence with EU-25 average

Intergenerational Partnership in Research and Development Activity

The emergence, spreading and dissemination of scientific knowledge currently surpasses the capacity of assimilation and processing by one individual, requiring multidisciplinary and multigenerational team research. The need of interaction and networking uptakes more and more in the management of research-development and innovation (RDI) due, on the one hand, to the growth of its complexity in the knowledge-based economy and, on the other hand, to the urgent need of researchers to come up with solutions for the pressing socio-economic issues. International experience proves that high individual professional quality is not enough for a successful research team. It requires collaboration, including an efficient intergenerational partnership acting in a working environment based on responsibilities, merit acknowledgement, risk-taking, kindness, support, good standards, conflict-avoidance (except for conflicts of ideas) as well as on the scientific identity of every researcher, irrespective of their age. Recognition of scientific and managerial complementarities of the research team members and reciprocal respect for personal values ensures the most efficient valorization of researchers potential within the team. The appreciation and recognition given to the collaborative work are important factors for creativity and success, given the positive relationship between these factors and the quality and quantity of the research output. The research and development (R&D) activity performance is greater when decisions, objectives and priorities are collectively established, since research activity is no more an individual effort, but a consequence of team work contribution. The paper presents the research results regarding the way in which the above mentioned aspects are reflected in R&D intergenerational partnership in Romania, revealing its typology and characteristics, the age structure trends of research teams, as well as the factors that stimulate or hinder cooperation between young researchers and the more experienced ones.intergenerational partnership, research-development, efficient teams, scientific complementarity

A VIEW ON THE NATIONAL CAPACITY OF SCIENTIFIC KNOWLEDGE ABSORPTION

The concept of the Absorptive Capacity has been approached in numerous theoretical and empirical studies during the last 20 years, covering multiple facets of the relationships between various external sources of knowledge and the capability of a firm, sectors or national economy to identify, assimilate and apply external knowledge in order to increase its economic performance. Absorptive capacity (AC) has been extensively analyzed at the firm level, but significantly less consideration has been given to the AC at the national level. National capacity of absorption is definitely much more than the simple aggregation of the individual companies’ capabilities or of the sectoral capacities, due to many systemic complex factors that may add to, or detract from the national AC: the multiplication and propagation effects, access facilities the stock of national and international knowledge, various synergetic mechanisms, knowledge spillovers etc. Based on the literature available, the authors attempted to design a system of indicators to quantify the relative scientific knowledge absorption capacity of different European countries compared with the EU average and the EU leader. Further on, these indicators will be aggregated, providing a fundament for comparative weighted estimations of the national absorptive capacities for scientific knowledge across EU

FOREIGN DIRECT INVESTMENTS AND THE NATIONAL ABSORPTION CAPACITY

Positive externalities that might appear as a result of foreign direct investments cannot be internalised by national companies in the absence of a critical mass of the absorption capacity at company level, and at the level of the national economy. The present study makes reference to four categories of multiplication effects that FDI might have on companies from the host country, the achievement of which is conditioned by their absorption capacity

IMPACT OF POLICIES AND PUBLIC FINANCING INSTRUMENTS ON R&D INVESTMENTS

This paper is based on the Romania country review, produced as internal working papers for the research project “Monitoring and analysis of policies and public financing instruments conducive to higher levels of R&D investment”. The aim of the project is to serve as support for policy developments in Europe, notably in the framework of CREST activities. It is running by a consortium of 7 partners:· UNU-MERIT (The Netherlands), consortium leader·Technopolis (The Netherlands)· PREST – University of Manchester (United Kingdom)· ZEW (Germany)· Joanneum Research (Austria)· Wiseguys Ltd. (United Kingdom) and INTRASOFT International (Luxembourg). Each country review provides expert’s view on the policy mix and its is to provide an exploratory analysis of the current policy mixes in place and detect the most important areas of interactions between instruments as well as new modes of policy governance that are particularly adapted (or detrimental) for the building of policy mixes.R&D policy mix, direct and indirect instruments, interactions

Intergenerational Partnership in Research and Development Activity

The emergence, spreading and dissemination of scientific knowledge currently surpasses the capacity of assimilation and processing by one individual, requiring multidisciplinary and multigenerational team research. The need of interaction and networking uptakes more and more in the management of research-development and innovation (RDI) due, on the one hand, to the growth of its complexity in the knowledge-based economy and, on the other hand, to the urgent need of researchers to come up with solutions for the pressing socio-economic issues. International experience proves that high individual professional quality is not enough for a successful research team. It requires collaboration, including an efficient intergenerational partnership acting in a working environment based on responsibilities, merit acknowledgement, risk-taking, kindness, support, good standards, conflict-avoidance (except for conflicts of ideas) as well as on the scientific identity of every researcher, irrespective of their age. Recognition of scientific and managerial complementarities of the research team members and reciprocal respect for personal values ensures the most efficient valorization of researchers potential within the team. The appreciation and recognition given to the collaborative work are important factors for creativity and success, given the positive relationship between these factors and the quality and quantity of the research output. The research and development (R&D) activity performance is greater when decisions, objectives and priorities are collectively established, since research activity is no more an individual effort, but a consequence of team work contribution. The paper presents the research results regarding the way in which the above mentioned aspects are reflected in R&D intergenerational partnership in Romania, revealing its typology and characteristics, the age structure trends of research teams, as well as the factors that stimulate or hinder cooperation between young researchers and the more experienced ones